Airbnb, the online global homestay and alternative accommodation aggregator, reported a 238% rise in revenues from its India operations while the net profit dropped by 35% for FY17, documents filed with the registrar of companies (ROC) showed.
Airbnb, the online global homestay and alternative accommodation aggregator, reported a 238% rise in revenues from its India operations while the net profit dropped by 35% for FY17, documents filed with the registrar of companies (ROC) showed. Airbnb India registered revenues of Rs 31.4 crore for FY17, compared with Rs 9.3 crore in FY16. Airbnb has been present in India since 2012. The San Francisco-based company is one of the world’s most valued start-ups, estimated to be worth $31 billion. It is a leading player in the sharing economy along with app-based cab aggregator Uber. Earlier this year during his visit to India, Airbnb’s co-founder and chief executive officer Brian Chesky said in the next 10 years, India would become the largest market for the company.
The Indian arm of the US-based start-up is one of the few e-commerce operators that are profitable in the Indian e-commerce market. Airbnb’s profitability assumes significance particularly at a time when its Indian rivals have been struggling to break even. Airbnb’s biggest rival in India, OYO Rooms, which is backed by Softbank, posted a loss of Rs 496 crore for FY16. Another branded budget hotel aggregator Fabhotels had reported a loss of about Rs 13 crore for FY16, compared with a loss of Rs 26.95 lakh it had incurred during the previous fiscal. Treebo Hotels posted a net loss of Rs 73.5 crore in the fiscal year ended March 2017 on total sales of `20.6 crore.
A recent report by Kalagato mentions that OYO and Airbnb are neck and neck as far as customer satisfaction and loyalty are concerned – while Oyo scored 0.58 in the net promoter score, Airbnb scored 0.54 in the same index. Airbnb also competes with online travel agencies (OTAs) such as MakeMyTrip and Yatra. Of late, the online travel booking business has become commoditised with OTAs indulging in a cash burning spree to lure customers. The sector recently witnessed a big consolidation with the merger of MakeMyTrip and Ibibo.