In today’s digital age, the tourism and homestay industry is facing unprecedented opportunities and challenges. With the continuous expansion of the tourism market, tourists’ demands for accommodation experience are becoming increasingly diverse and personalized. Traditional design methods often struggle to quickly respond to these changes, fully showcase regional characteristics, and achieve efficient personalized customization. At the same time, how to integrate modern technology while retaining traditional charm to enhance the attractiveness and comfort of homestays has become an urgent problem to be solved. This paper aims to explore in depth how to use this technological framework to optimize the decoration design of tourist homestays, in order to create living spaces that retain traditional charm and are rich in modern technology. By utilizing digital image network computing technology, it is possible to conduct 3D modeling and virtual simulation of the indoor space of homestays. By simulating different furniture placement and spatial separation schemes, combined with tourist behavior analysis data, the optimal spatial layout scheme is automatically recommended to achieve maximum space utilization and a comfortable living experience. This technology can analyze a large number of color matching cases, combined with the cultural characteristics of the area where the homestay is located, and apply the principles of color psychology to provide personalized color schemes for homestay design. Meanwhile, through style recognition and recommendation algorithms, designers can quickly locate and integrate traditional and modern elements to create unique decorative styles.