Airbnb signs contract to boost Indian tourism

Airbnb was founded in 2008, San Francisco, California, United Sates

Airbnb has signed a lucrative memorandum of understanding (MoU) with the tourism ministry of Maharashtra to promote destinations and become the official accommodation partner for the entire state. This is the first of its kind revenue-sharing agreement with a state government by Airbnb.

Airbnb is one of the leading global digital marketplace and hospitality service provider, enabling people to lease or rent short-term lodging including vacation rentals, apartment rentals, homestays, hostel beds, or hotel rooms.

The company has previously tied up with the state tourism boards of Gujarat and Andhra Pradesh but the MoU signed with the tourism board of Maharashtra is on a strict revenue-sharing agreement basis. The agreement states that Airbnb will be sharing a small portion of its booking revenue in Maharashtra with the Maharashtra Tourism Development Corporation (MTDC). The move was readily welcomed by the tourism board.

Amanpreet Bajaj, country manager of India, Airbnb stated, “India is a key strategic market for Airbnb globally and we have started investing resources (in branding and marketing) from here on. The marketing campaign that we are running this year is by far the largest we have done and we will continue to invest wherever we feel it is appropriate. India is a long-term opportunity and we will continue to invest here. An annual growth of 200% is phenomenal and we will continue to see this for a few more years before it stabilizes.”

The company believes the MoU signed with the Indian state tourism boards will aid increasing visibility of their company in the subcontinent.  According to a leading source, Airbnb will also provide skill development workshops for hosts on hospitality standards, jointly conducted by one of the world’s most valued startups and the government over the next six months. The aim is to increase the global footprint of homestays across the various Indian states.

India is one of the booming tourism sectors in terms of both inbound and outbound tourists. Airbnb which has its presence largely felt across the globe plans to tap that potential to increase their prominence and revenue returns.

Airbnb has been facing obstacles in their business conduction citing decreasing market flexibilities in the field. CEO Brian Chesky, Airbnb commented, “The reason I am incredibly excited is, say in about 10 years from now, it will be one of the world’s biggest markets for Airbnb.”