Core Insights - The homestay market in 2025 is experiencing a "quantity increase, profit decrease" phenomenon, with over 65,000 new market entities added by September, primarily from five provinces including Guangdong and Yunnan, while over 80% of homestay owners are operating at a loss [1] - The market is showing significant differentiation, with low-end homestays engaged in price wars leading to average revenue of only 165.8 yuan per night, while high-quality homestays priced above 400 yuan account for 30.9% of demand, indicating a "K-shaped" trend in the industry [1] - Unique experiences are identified as the core competitive advantage for homestays, as highlighted by industry executives [1] Market Trends - The rise of "small town tourism" is driving the homestay industry to penetrate lower-tier cities, with provinces like Guangdong and Henan leading in new additions, showcasing the potential of the lower-tier market [3] - The homestay cluster in Guilin Yangshuo serves as a model, where unique services such as intangible cultural heritage workshops have improved customer satisfaction even with low occupancy rates [3] - The introduction of "study + homestay" packages is enhancing the integration of travel and cultural experiences [3] Digital Transformation - Over 60% of homestays are facing unstable customer sources, while leading players are overcoming challenges through "short video traffic + private domain operations" [3] - A homestay in Hangzhou achieved a 300% increase in orders by leveraging a trending topic on Douyin, demonstrating that proactive customer acquisition is more effective than relying on OTA platforms [3] - The industry has shifted from "earning dividends" to "earning capabilities," emphasizing the need for specialization and service optimization to remain competitive during market consolidation [3]