Airbnb has now signed a memorandum of understanding (MoU) with the tourism ministry of Maharashtra to become the official alternate accommodation partner for the entire state. While this is not the company’s first agreement with an Indian state government, it has previously partnered with the Gujarat and Andhra Pradesh governments, this is its first revenue-sharing agreement of this kind.
As part of this agreement, Airbnb will now have Maharashtra Tourism Development Corporation (MTDC) properties displayed on its platform to increase the number of bookings. According to the agreement, the company will share a small portion of its revenue from bookings in Maharashtra with MTDC. According to Amanpreet Bajaj, country manager for Airbnb India,
The idea is to give home-stays across Maharashtra a global footprint. We want to share our best practices through hospitality workshops and sensitisation workshops
The partnership between the company and MTDC also aims to expand Airbnb’s network of home-stays and increase their brand’s presence in India. As part of being in a first commercial partnership with a state government, the company also plans to host skill development workshops on hospitality standards together with the government by December.
In addition to bed-and-breakfast stays as well as popular MTDC resorts, Airbnb will also showcase 72 indigenous experiences that have been developed by the government and are expected to attract foreign tourists. The home stay company will ensure safety and cleanliness of each property before listing it on the website.
This agreement with the government comes shortly after the alternate accommodation company launched its own experience business category named ‘Trips‘ in India in March earlier this year. There are currently 22,000 Airbnb properties spread across 100 cities showing an annual growth rate of 125% in listings.
Bajaj also 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.
Airbnb has increased its presence as well as focus in the Indian market after CEO Brian Chesky remarked that he thought India will become one of the company’s most important revenue generators,
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.
