‘Our model extends beyond traditional hotels’

Airbnb’s journey began in 2007 when its founders Brian Chesky and Joe Gebbia, both designers, faced financial challenges in San Francisco. The city was hosting a design conference that led to a shortage of hotel accommodations, inspiring the duo to transform their apartment into a makeshift bed and breakfast for three guests. This a-ha moment marked the inception of Airbnb. Realising the potential of their idea, Chesky Gebbia and the third co-founder, Nathan Blecharczyk, officially launched Airbnb in 2008. The platform started as Air Bed & Breakfast, reflecting its origin as an air mattress rental service for conference attendees. The founders soon recognised the broader market for connecting hosts and guests beyond air mattresses and breakfast. That’s how Airbnb was born.

The company forayed into India in 2016 and since then it has enabled millions of connections between guests and hosts and curated unique and authentic stay experiences. “Our hosts have welcomed travellers from across the world into diverse communities and showcased our rich heritage. Hosting on Airbnb presents an excellent opportunity for Indians – especially women – to earn extra income and make ends meet.  Almost 30 per cent of Airbnb Hosts in India are women (self-identified), who collectively earned over Rs 2 billion in 2023, shaping the future of hospitality with inclusivity and economic opportunities,” says Amanpreet Bajaj, General Manager for Airbnb India, Southeast Asia, Hong Kong and Taiwan.

India remains one of the priority geographies for Airbnb globally, and its business in India is growing. The contributions have significantly impacted the economy, adding over $920 million to India’s GDP and supporting more than 85,000 jobs from April 2022 to March 2023. Excerpts from an exclusive interview:

How has Airbnb grown in terms of listings and user base in India since its launch?

Airbnb has seen substantial growth in both listings and user base in India. The number of nights booked in India grew by almost 30 per cent year-over-year in 2023, reflecting the increasing adoption of Airbnb among Indian travellers. Our platform now features a diverse range of listings, from traditional homestays to iconic properties. This expansion is part of our broader strategy to offer more than just accommodation, creating unique experiences that appeal to a wide range of travellers across the country.

What sets Airbnb apart in the accommodation sector?

Airbnb distinguishes itself in India’s accommodation sector by offering diverse, immersive travel experiences. Our model extends beyond traditional hotels, encompassing a vast array of accommodations, including private homes, apartments, treehouses, and even unique spaces. This diversity enables Airbnb to cater to a wide range of traveller preferences and budgets. There are more than eight million listings on Airbnb, each unique. This variety is what sets us apart from hotels and other traditional accommodations — amenities, kitchen, local experiences and cultural immersion, comfort of home away from home, flexibility and more.

But we know travel decisions are personal and people have a lot of options to choose from, so we’re focussed on continuously improving our product and brand, and delivering unique ‘money can’t buy’ magical experiences. Our new Icons category offers extraordinary experiences hosted by renowned figures in various fields, allowing travellers to engage with exclusive opportunities like spending a night at actor Janhvi Kapoor’s Chennai home, exemplifying this innovative approach. As we’ve seen fundamental shifts in travel, we’ve been focussed on relentless innovation, rolling out hundreds of updates and improvements across our entire service over the past couple of years, while at the same time making it easier to become a Host.

How significant is the Indian market for Airbnb?

India is an incredibly important geography for Airbnb, and we see immense potential here, particularly given the country’s young and tech-savvy population. India’s growth trajectory, cultural richness, and diversity make it one of our most exciting global markets. Travel trends in India show a significant shift led by millennials and Gen Z, with 90 per cent of first-time bookers in 2023 belonging to these age groups.  As personal disposable income rises, there’s a growing desire to explore both domestic and international destinations. Airbnb caters to these evolving preferences by offering customisable options based on specific interests, aligning with the younger demographic’s emphasis on personalised and memorable travel experiences.

The growing trend of guests seeking immersion in local communities for authentic experiences further underscores India’s potential. As more Indians embrace travel, we believe Airbnb will continue to play a pivotal role in shaping the future of India’s travel and tourism industry.

What strategies do you employ to cater to the Indian market?

We have collaborated with state governments in Goa, Madhya Pradesh, Uttarakhand and Maharashtra to promote lesser-known destinations and enhance local tourism. Recognising Bollywood and cricket as growing passion points in India, our campaigns featuring icons like Shah Rukh Khan, Janhvi Kapoor and Yuvraj Singh resonate deeply with Indian audiences, offering exclusive stays that reflect these interests. Additionally, we tailor our platform with features like shared wish lists and group messaging to meet the increasing demand for group travel, ensuring we stay connected with Indian travellers while supporting the broader travel ecosystem, which accounts for over 86 per cent of bookings on our platform. These initiatives help us stay relevant and connected with Indian travellers while supporting the broader travel ecosystem.  

What recent trends will disrupt the Indian travel and tourism landscape in the near future? Which segments do you think will drive the nation’s tourism economy in the coming years?

We’re witnessing the rise of offbeat and lesser-known destinations, driven by a desire for unique experiences and the influence of social media. Accommodation preferences are diversifying across categories, from national parks to private rooms with pools. Group travel is emerging, with a 75 per cent YoY increase in international bookings from Indian groups, reflecting the growing desire for shared experiences among friends and families. Bollywood films and social media influencers are contributing to the popularity of international destinations like Milan, Tokyo, and Rome. These trends, primarily driven by millennials and Gen Z, are likely to shape India’s tourism economy in the coming years.

What policy reforms or government initiatives could drive inbound tourism in India?

To drive inbound tourism, continued collaboration between the government and private sector is essential. Initiatives that promote lesser-known destinations and cultural heritage sites could significantly boost tourism. We believe that policies encouraging sustainable and community-based tourism will also be critical in the long run. Airbnb has already partnered with the Ministry of Tourism to spotlight heritage stays across India, and similar efforts can be scaled to enhance India’s appeal to international tourists. We have also fostered impactful partnerships with local governments, foundations and self-help groups to promote responsible travel experiences that benefit local citizens and small businesses economically. Additionally, simplifying visa processes and enhancing infrastructure in emerging tourist destinations could make India a more attractive destination for global travellers.