A lack of awareness among homestay operators regarding the significance of innovation implementation contributes to the incompetence of some homestay programmes. This study intends to investigate the types of innovative homestay programmes that were implemented to be sustainable and competitive in the advanced sector. This study applied the qualitative approach, in which in-depth interviews were conducted with the homestay coordinators focused on the impact of innovation implementation, and the collected data were analysed using the content analysis technique. There were seven registered homestay programmes with fourteen respondents on the East Coast of Malaysia which met the criteria of this study. The results indicated that the homestay programmes have adopted product innovation regarding lodging, activity packages, and businesses. According to the findings, homestay programmes have four types of innovation: (1) product and service innovation; (2) marketing innovation; (3) management innovation; and (4) process innovation. This study will aid in enhancing the quality of the accommodation experience for homestay visitors and will guide the sustainable growth of the homestay business. This research contributes to the body of knowledge through the innovation types of homestay programmes. This finding is beneficial to the industry players as a benchmark for stakeholders in planning the strategies of homestay programme development.