Homestay is a form of tourism and/or study abroad program that allows the visitor to rent a room from a local family to better learn the local lifestyle as well as improve their language ability. While homestays can occur in any destination worldwide, some countries do more to encourage homestay than others as a mean of developing their tourism industry. Hosting a homestay participant also allows the local family to earn some additional, needed income. Having low profitability, as it is, homestay can not be regarded as strictly commercial activity, but more of cross cultural exchange. Students generally arrange a homestay with their school or educational institution, but can also informally arrange to stay with a family through social connections, and through a variety of private agencies. There are a number of online homestay agencies that connect student with hosts all over the world (usually for a nominal fee).
Source: Wikipedia.
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