Since the pandemic setback, online homestay and tourism platform Airbnb has made a swift comeback, recording a 30% increase in bookings in India last year. Amanpreet Singh Bajaj, general manager at Airbnb India, SE Asia, Hong Kong, and Taiwan talks to Christina Moniz about the platform’s recent offerings, and the importance of the millennial and GenZ cohort. Edited excerpts:
Airbnb made a quick recovery after the pandemic slump, recording $9.9 billion in global revenue in CY23. How would you describe the business recovery in India?
We surpassed the pre-pandemic levels quite quickly. In India, the number of nights booked grew 30% Y-o-Y in CY23 compared to CY22. We are definitely seeing a strong growth momentum across our key segments, whether in outbound or inbound travel. A report based on research by Oxford Economics has claimed that Airbnb contributed almost $920 million to the country’s GDP in FY23. This includes direct spending on Airbnb, as well as ancillary spends. So, if someone is staying in a particular area, they also spend on travel, dining and retail in that locality. When tourism takes place in newer neighbourhoods, it has a positive effect on the entire community that benefits from the dispersal of tourism dollars.
From an economic impact perspective, we have seen strong momentum and have supported 85,000 jobs directly and indirectly. As we are getting out of the pandemic, we observe that some trends are here to stay. For example, people are staying in destinations for longer because of the newfound flexibility of working from anywhere. During the pandemic, we would see bookings of over 28 days and this trend continues post the pandemic.
How critical is India’s contribution to the platform’s global business?
We have been seeing double-digit growth in terms of active property listings in the APAC market, of which India is a part. Goa has become a key, 365-day market in India and it is one of the top five destinations across seasons. Other domestic destinations such as Varkala, Kochi and even metros like Delhi are growing in popularity for travellers who are looking to explore the northern hill stations. Airbnb has been working with state governments in Maharashtra, Goa, Madhya Pradesh etc. and has signed MOUs at the central level to promote India as a tourism destination among global audiences.
We are building capacity in under-served markets by imparting hospitality training, leadership, use of technology etc. Based on our estimates, one out of three travellers from top urban areas in the near future will be potential Airbnb customers. That is why we are creating more awareness about our platform in a locally relevant way.
Take us through your newly introduced category of Icons.
Over the past five years, we have launched over 90 one-of-a-kind stays and experiences globally, 35 of which were launched last year alone. Some examples of these are the Home Alone house, the Barbie Malibu getaway, and Gauri and Shah Rukh Khan’s house in Delhi. With Icons, we have taken the next big leap, thanks to the growing interest from people looking for larger-than-life experiences and concepts. The idea is to immerse travellers in a world that only exists in their imagination, which is why we decided to make Icons a permanent category. This month, we launched 11 such experiences and we are happy that one of them is in India with Janhvi Kapoor opening her family home in Chennai to Airbnb travellers. Her fans and visitors will have the opportunity to not just visit her home but also try her favourite dishes and learn about her health and yoga routine. With experiences like these, we are tapping into India’s cultural zeitgeist, especially considering just how big Bollywood is in this country.
We will keep adding new experiences for travellers periodically. We expect that this move will drive brand recall for Airbnb, providing access to newer communities and demographics. Each Icon is so deeply relevant culturally that it would help penetrate specific demographics and give us access to large fan bases across markets.
While your consumer base is largely millennial and GenZ, how are you tapping the opportunity that older consumers present?
Millennials and GenZ consumers are at the heart of Airbnb; about 90% of first-time bookers last year were in that cohort. The idea is to always keep building for the next generation. However, the beauty of our platform is that there is an Airbnb listing for all kinds of consumers and for various travel purposes. If you look at the list of Icons too, you will recognise that we’re targeting all age groups — on the one hand, there is Prince’s Purple Rain house that will resonate more with older consumers who are familiar with his music, and on the other is an intimate concert by Doja Cat, who is popular among younger audiences. We have offerings for all kinds of consumers across diverse interests and age groups.