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School of Business

Tourism & Homestay Business

Step 5 of 11 in Business Hall

Next in your path: 2.25.1 Trade Basics: how goods cross borders

What you'll be able to do
  • Explain the main types of small tourism businesses: homestay, bed and breakfast, short-term rental and local tours or experiences.
  • Check whether you are allowed to host where you live, before you spend money.
  • Work out costs, a nightly price and occupancy with simple numbers.
  • Set up a safe, clean, guest-ready space with house rules and a review plan.
  • Handle food and add-on experiences responsibly.
  • Find the official rules where you live (worked examples: the Philippines, Canada, the USA, the UK, Australia and India).
Words in this course 51Open the Vocabulary Hall
01

What a tourism or homestay business is

In simple words

A homestay is like having a friend from far away sleep over at your house, but they pay you, and you show them your town. You give them a clean bed, a safe place and a warm welcome.

Key facts
  • Homestay: the guest stays in the host family's home and shares daily life. The Philippine Department of Tourism (DOT) lists homestays among accommodation establishments that can apply for DOT accreditation.
  • Bed and breakfast (B&B): rooms plus breakfast, usually small and often owner-run.
  • Short-term rental: a room or whole home rented for a few nights, often through an online platform.
  • Tours and experiences: walking tours, cooking classes, farm visits, island hopping, guided hikes. These can be sold alone or with a stay.
  • Your main costs: the space (rent or mortgage share), cleaning, laundry, utilities and internet, supplies (soap, toilet paper, towels), repairs, platform or booking fees, insurance, permits and taxes.
  • Main risks: rules that do not allow hosting where you live, bad reviews, damage, safety incidents, empty nights in the low season.
Step by step
  1. Read the four types: homestay, bed and breakfast, short-term rental, tours and experiences.
  2. Write which one fits your home and your time best, and one reason why.
  3. Write who your guest would be (traveller, student, family visiting the area).
  4. List every cost for one guest night: space share, cleaning, laundry, utilities, internet, supplies, repairs, platform fees, insurance, permits, taxes.
  5. Mark the three biggest costs.
  6. Check: you have one type chosen and a cost list that is at least 10 lines long.
Watch on YouTube
How to start and run a homestay businessThe Homestay Academy · YouTube · youtube.com

Videos by other creators on YouTube, for reference. They are not made by or affiliated with The Future Market.

LESSON 01What a tourism or homestay business is
LESSON 01 / ANIMATED LESSON / AI VOICE00:00 / 01:00
Read the video script
[Host] "Tourism isn't just big hotels. A spare room, a family home, or a local tour can be a small business."
[Text on screen: Homestay, B&B, Short-term rental, Tours] "There are four simple types. Homestay: guests live with you. B&B: room plus breakfast. Short-term rental: a room or home for a few nights. Tours: you sell an experience."
[Screen: list of costs, cleaning, laundry, supplies, fees] "Each one has costs that are easy to forget, like laundry and platform fees."
[Host] "Start by picking one type, and check the rules before you buy a single pillow."
Try it now

Write down which type fits your situation best and why. List every cost you can think of for one guest night.

ClaudeStuck? Copy a ready-made prompt for Claude

Copy this, open Claude, paste it, and Claude will walk you through the lesson step by step.

For a grown-up: Claude is for adults (18+). Copy this, paste it into Claude, and use the answer to explain the lesson to your child.

I'm learning "Tourism & Homestay Business" on The Future Market. Lesson 1: "What a tourism or homestay business is".

What the lesson teaches:
- Homestay: the guest stays in the host family's home and shares daily life. The Philippine Department of Tourism (DOT) lists homestays among accommodation establishments that can apply for DOT accreditation.
- Bed and breakfast (B&B): rooms plus breakfast, usually small and often owner-run.
- Short-term rental: a room or whole home rented for a few nights, often through an online platform.
- Tours and experiences: walking tours, cooking classes, farm visits, island hopping, guided hikes. These can be sold alone or with a stay.
- Your main costs: the space (rent or mortgage share), cleaning, laundry, utilities and internet, supplies (soap, toilet paper, towels), repairs, platform or booking fees, insurance, permits and taxes.
- Main risks: rules that do not allow hosting where you live, bad reviews, damage, safety incidents, empty nights in the low season.

The exercise I'm working on:
Write down which type fits your situation best and why. List every cost you can think of for one guest night.

I'm stuck. Please:
1. Explain the main idea in plain, simple words with one everyday example.
2. Walk me through the exercise one small step at a time. Ask me what I've done so far before giving the next step.
3. Don't just give me the final answer. Help me do it myself, and check my work when I share it.
I'm a parent helping my child (about 8 years old) with a lesson called "What a tourism or homestay business is" from the course "Tourism & Homestay Business".

Here's what the lesson says:
A homestay is like having a friend from far away sleep over at your house, but they pay you, and you show them your town. You give them a clean bed, a safe place and a warm welcome.

The activity:
Write down which type fits your situation best and why. List every cost you can think of for one guest night.

Please explain this so an 8-year-old understands: short sentences, a fun everyday example, and no hard words.
Then give me 3 simple questions I can ask my child to check they understood, and a way to do the activity together, one tiny step at a time.
Open Claude
Sources
My notes
02

Are you allowed to host here?

This lesson is part of full access: every course and every level for one payment.

03

Costs, pricing and occupancy

This lesson is part of full access: every course and every level for one payment.

04

Safety, cleanliness, house rules and reviews

This lesson is part of full access: every course and every level for one payment.

05

Food, tours and extra experiences

This lesson is part of full access: every course and every level for one payment.

06

Rules where you live (registration and tax)

This lesson is part of full access: every course and every level for one payment.

++

Final project

This lesson is part of full access: every course and every level for one payment.

??

Quiz

  1. What is a homestay?

  2. How do you calculate occupancy rate?

  3. What are the four permission layers to check?

  4. Why check your city's short-term rental rules before listing a home?

  5. What should a host do when a city caps the nights a whole home can be rented?

  6. What may happen to the expenses of a short-term rental that breaks local rules?

  7. What should a new B&B host check before serving breakfast?

  8. What should you always ask guests before cooking for them?

  9. Where may security cameras never be placed?

  10. Where can you learn about your country's homestay or tourism registration scheme?

EX

Final exam

This lesson is part of full access: every course and every level for one payment.

CE

Certificate

This lesson is part of full access: every course and every level for one payment.