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Brian Chesky, the 35-year old co-founder and CEO of world’s highest valued travel startup Airbnb firmly believes that India is on the path to becoming one of the largest travel markets in the world.
On a visit to New Delhi, Chesky said that India and China are long-term bets for Airbnb which is valued at over USD 31 billion.
“China and India are both going to be similar in size, just that China is going to get there sooner. China’s earlier on the curve, in terms of infrastructure and income per capita, and by 2035, India and China will be the two biggest travel economies in the world, and India won’t be much smaller than China,” he said in an interview to Forbes India.
He also said that India is going to need a bit more infrastructure. “More and more people are going to have to discover India, get comfortable with India and the perceived risk of visiting has to go down,” said Chesky, who co-founded Airbnb in 2008.
The company has investors such as Sequoia Capital, JPMorgan and has raised USD 3.40 billion so far.
Staying with a South Delhi Airbnb host, Chesky also pointed to the differences between an Indian and a western traveller.
“The difference between Airbnb in India and in other parts of the world is that price points (of AirBnb in India) are a little higher, relative to its economy. What we call budget in the US, might be called affluent here. Most Indian people travelling around the world are still spending less than USD 100 a night,” he pointed.
Currently, the company has about 22,000-odd listings in India which are priced at an estimated average of Rs 2500 in India's metro cities. In comparison, budget room aggregators such as OYO Rooms have priced rooms in metro cities at around Rs 1500-Rs 2,500.
The company largely caters to foreign and leisure travellers who are looking for an Indian experience than a typical budget business traveller who is looking for an inexpensive room in a central business district of a city.
Chesky feels that Airbnb has also become a source of financial independence for many women in India.
“In India, most of the hosts have had stories of hosting a 100 people from all over the world. These women [hosts] also had amazing stories of a sense of personal transformation, financial independence,” he said.
(This story was first published in Forbes India. Read the full interview here)
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