Core Viewpoint - The summer of 2023 has seen a significant decline in the popularity of homestays, with a noticeable drop in bookings compared to previous years, leading to increased competition and price wars among mid-to-high-end homestays [2][4]. Industry Trends - The homestay market is experiencing a transformation, shifting from a focus on "Instagrammable" locations to an emphasis on practical experiences and value for consumers [2][3]. - Data from Tujia indicates that over 40% of homestay bookings this summer were for stays of 7 days or more, reflecting a trend towards longer stays [3]. - A report shows that 30.9% of online homestay bookings in February 2023 were for properties priced over 400 yuan, indicating a rising demand for higher-quality accommodations [3]. Market Dynamics - The number of registered homestays is projected to grow from 91,000 in 2023 to 100,200 in 2024, representing year-on-year increases of 136.87% and 10.08%, respectively [4]. - Operators are adapting to market changes by enhancing service offerings, such as providing unique experiences and personalized services to attract customers [2][3]. Consumer Preferences - Consumers are increasingly valuing unique experiences, such as scenic views and cleanliness, with a focus on the overall experience rather than just the accommodation [3][6]. - Family-friendly features and pet-friendly options are becoming popular among consumers, indicating a shift towards more personalized and diverse offerings in the homestay market [6]. Strategic Recommendations - Industry stakeholders are encouraged to diversify customer acquisition channels and move away from reliance on short-term stays, focusing instead on long-term, scalable travel products that integrate local culture [4].