Having to stay with top hotel brands and hundreds of homestays in India & abroad, ranging from $20 to 200 in the past three decades, I have experienced inferior service from the expensive ones, while a small homestay has stunned me with their visibly high service standards. Before I got into my homestay venture, I got my problem statement ready which I planned to incorporate in my investment deck for my future VC fundraising. Travellers staying in homestays prefer to pay for the value they derive from the money spent. I had to create the right product, at INR 3000-6000 rupees a night for a heated room, as a midscale brand. I threw in an all-day breakfast and anytime check-in with the tariff.
My learnings:
- Have multiple property options before selecting a property. Create the snag list, always.
- Keep your business model asset-light Yearly lease amounts can be sufficient to kick-off your venture and most of these properties are well-furnished with the furniture and appliances.
- Align your family before you take the plunge in the start-up arena, it remains mission-critical for your spouse and children to know that there will be certain changes or uncertainties involving the finances, leisure travels and lifestyles.
- Don’t expect immediate business from your personal network of people, it takes some time to bring your friends and acquaintances to sample your hospitality until you have earned some social proof. Keep your social media handles active posting feeds, stories, reels & guest reviews regularly to create an image which can be accessed easily by a prospective guest. Booking.com, AirBnb are great platforms too before you launch your own website, or you want your guest list to be ‘only on invitation.’ My key to sourcing guests is from our guest referrals and my social media network.
- Network shamelessly, and ask for help to your industry colleagues if you want to know about the processes. I know the other hoteliers within my locality, the Hoteliers’ association President, the Municipal Chairman, and the relevant vendors in my neighbourhood. I took guidance and help from successful hoteliers I know of, before launching my operations.
- Recruit locals who can reach your property within 30 minutes by walk. Instead of recruiting one person for housekeeping, invest in an agency. Interview a large number of people before you recruit the right ones.
- Learn cooking, cleaning, reaching your guest’s luggage to their rooms during the early morning or a late-night check-ins. It helps personalize the experience.
- Don’t brag about your past achievements, or bore them with your borrowed wisdom while interacting with a guest, an intent listening without interruption works wonders.
- Running a homestay involves very large amount of involvement by the owners. My wife and I had happily spent our New Year’s Eve in the kitchen. It’s our guests who fill our mountain chalet with their warmth to make us feel absolutely privileged, blessed.
