Homestay: what it is, how India's schemes define one, and how to list it

A homestay is a home where guests stay as paying guests of the family who live there, in a few rooms of the house, often with home-cooked meals. In India, the Ministry of Tourism classifies Incredible India homestays where the owner's family lives in the house and lets out one to six rooms, and many states run homestay schemes of their own, with their own room limits and registration.

Also called: home stay, homestay meaning, homestay registration, Incredible India homestay, bed and breakfast, B&B, rural homestay, farm stay.

A OneHorizyn page. Updated .

What makes a homestay

  • The family lives there: guests stay in the family's home, not in a building run only for guests.
  • A few rooms: the national scheme and the state schemes below cap a homestay at six.
  • Home food and local life: meals cooked in the house, and a host who knows the place.
  • A home's rules, not a hotel's: guests may share some spaces, and know what to expect.

A bed and breakfast is close. In the Ministry of Tourism's scheme, its owner doesn't live there, but an agent or operator does, to look after guests. A guest house, in the Ministry's separate scheme, needs at least six lettable rooms and a reception.

The Ministry of Tourism's homestay scheme

The Ministry of Tourism classifies Incredible India Bed & Breakfast and Incredible India Homestay establishments in states and union territories that don't have a scheme of their own. Its guidelines give the aim as a clean and affordable place to stay, and a chance for guests to stay with an Indian family.

  • A homestay: the owner and family live in the house and let out at least one room and at most six, with 12 beds.
  • A bed and breakfast: the owner doesn't live there, but an agent or operator does, with the same one to six rooms.
  • Two categories, Silver and Gold, inspected by a regional committee chaired by India Tourism's regional office.
  • Run on a bed and breakfast basis: the breakfast offered must be specified, its charges displayed and guests told in advance.
  • Rooms of at least 120 square feet in the plains and 100 in the hills for Silver, and 200 and 120 for Gold, each with an attached bathroom.
  • A register of guests' check-in and check-out, with passport details for foreign guests.
  • Classification valid for two years. Apply to renew it three months before it ends.
₹3,000 and ₹5,000

The Ministry of Tourism's fee for classifying an Incredible India Bed & Breakfast or Homestay establishment: ₹3,000 for Silver and ₹5,000 for Gold. Its guidelines say a complete application is decided within 30 days.

Source: Ministry of Tourism: standards for Incredible India Bed & Breakfast and Homestay establishments (NIDHI), read

State homestay schemes

Where a state has its own scheme, the Ministry's doesn't apply there, and the state's rules are the ones to follow. Three examples, as Kerala's tourism department and Airbnb's summaries for hosts set them out:

  • Kerala: classified as a Diamond, Gold or Silver homestay by the state's Department of Tourism, only where the owner and family live in the house; leased or rented houses aren't considered; at most six rooms; valid for three years, with the certificate on display for guests.
  • Himachal Pradesh: homestays come under the Himachal Pradesh Home Stay Rules, 2025, and homes registered under the 2008 scheme must register under them too. Airbnb's summary gives at most six rooms with attached toilets, and says the owner need not live in the unit.
  • Uttarakhand: Airbnb's summary names the state's homestay rules of 2015 and 2018, one to six rooms, the owner living in the house with the family, and registration with the district tourism office or the state's online portal.
₹3,750

The application fee Kerala's Department of Tourism gives for classifying a homestay, paid online with the application.

Source: Kerala Tourism: guidelines for the classification and reclassification of homestay units, read

The Ministry's draft national strategy for rural homestays suggests that states exempt rural homestays from licensing under the Sarais Act, 1867, and charge them domestic rates for power and water. It is a draft, not a rule. Rules, fees and portals change, so read your own state tourism department's page before you build or register.

Listing a homestay on the booking sites

  • Booking.com sorts properties into hotels, apartments, homes and alternative places, and lists Homestay among its home types. It says a property type can't be changed after registration, so choose carefully.
  • Booking.com's quality rating, its yellow squares, covers 11 kinds of home and smaller property, such as guest houses and B&Bs, and Homestay isn't one of them. It lets stars be set only for hotel-type properties.
  • On MakeMyTrip and Goibibo, choose “Homestays & Villas” as the property type, then homestay as the kind of place, and whether you sell the whole property or room by room. Go-MMT asks for photos of the property and each room, ownership details, and your bank and tax details, and says GST registration isn't mandatory for homestays.
  • On Agoda, a homestay can be a multi-unit home, with several rooms under one listing, or a single-unit home, with each room listed on its own.

What a homestay earns: a worked example

An example, made up for this page

A family in a hill town lets three rooms at ₹3,200 a night for two, with breakfast. Over a season of 120 nights the rooms are full 55% of the time: 198 room nights, ₹6.34 lakh. Breakfast for two costs the family ₹300 a room, ₹59,400 over the season. If half the room nights come through a booking site, at a commission taken here as 18%, the site takes ₹57,024. What is left before other costs is about ₹5.17 lakh, and every guest who books again directly keeps the site's share at home.

Before you open, step by step

  1. 1Read your state tourism department's homestay scheme, or the Ministry's if your state has none, and check who must live there, how many rooms are allowed and the room sizes.
  2. 2Register or apply for classification as the scheme asks, and keep the certificate where guests can see it if the scheme says so.
  3. 3Keep a register of every guest's arrival and departure, with identity details, and passport details for foreign guests.
  4. 4List on one or two booking sites as a homestay, with photos of each room, your house rules and your meals.
  5. 5Give guests a way to book you directly next time: a website, or a number they can message.

Sources

  1. Ministry of Tourism: standards for Incredible India Bed & Breakfast and Homestay establishments (NIDHI), read
  2. Kerala Tourism: guidelines for the classification and reclassification of homestay units, read
  3. Ministry of Tourism: draft national strategy for the promotion of rural homestays (NIDHI), read
  4. Ministry of Tourism: guidelines for the approval of guest houses (NIDHI), read
  5. Kerala Tourism: homestay classification criteria, read
  6. Airbnb Help Centre: hosting rules in Himachal Pradesh, read
  7. Airbnb Help Centre: hosting rules in Uttarakhand, read
  8. Booking.com Partner Hub: registering your property on Booking.com, step by step, read
  9. Booking.com Partner Hub: everything about quality ratings, read
  10. Booking.com for Developers: property class type codes, read
  11. Booking.com for Developers: awards and star ratings, read
  12. Go-MMT Partner Community: how to list a homestay or villa with MakeMyTrip and Goibibo, read
  13. Go-MMT Partner Community: is GST registration required for all properties, read
  14. Agoda Partner Hub: understanding property types on Agoda, read
Questions

Questions hotels ask

What is a homestay?

A home where guests stay with the family who live there, in a few rooms of the house, usually with home-cooked meals.

What is the difference between a homestay and a bed and breakfast?

In the Ministry of Tourism's scheme, the owner and family live in a homestay; in a bed and breakfast the owner doesn't, and an agent or operator lives there to look after guests. Both let one to six rooms.

How many rooms can a homestay have in India?

Up to six, with 12 beds, under the Ministry of Tourism's scheme, and up to six in Kerala, Himachal Pradesh and Uttarakhand, as Kerala's tourism department and Airbnb's summaries give them. Check your own state's scheme.

Does the owner have to live in a homestay?

Under the Ministry of Tourism's homestay scheme and Kerala's, yes. Himachal Pradesh's 2025 rules, as Airbnb summarises them, don't require it. Your state's scheme decides.

How do I register a homestay in India?

With your state's tourism department, under its homestay scheme, where it has one. Where it doesn't, the Ministry of Tourism classifies Incredible India homestays, applied for online with a fee.

Is GST registration needed to list a homestay on MakeMyTrip?

Go-MMT says GST registration isn't mandatory for properties such as homestays, which can list by accepting its GST NOC agreement in the extranet. Ask your accountant whether your own sales need it.

Do homestays get stars on Booking.com?

Booking.com lets stars be set only for hotel-type properties, and its quality rating covers a list of home types that doesn't include homestays. Guests read your reviews instead.

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