![India's first time millennial, Gen Z bookers present a vast, untapped opportunity: Nathan Blecharczyk, Airbnb co-founder and chief strategy officer](https://img.etimg.com/thumb/msid-109794450,width-300,height-225,imgsize-968266,resizemode-75/indias-first-time-millennial-gen-z-bookers-present-a-vast-untapped-opportunity-nathan-blecharczyk-airbnb-co-founder-and-chief-strategy-officer.jpg)
Blecharczyk said in an interview that the company has observed “significant interest” in various destinations across the country, and to support this trend, it has collaborated “closely” with the government to promote local tourism and highlight the rich cultural heritage and diverse accommodation options available.
“In India, more than 86% of bookings on Airbnb are group trips, which is why we’re introducing new features to help make planning trips with friends and family easier,” he said.
Blecharczyk said tourism is a “burgeoning” industry, especially in India, buoyed by a rapidly expanding middle class.
“With the largest population of Gen Z and millennials globally, it's no surprise that youth constitutes a significant portion of Airbnb's traction in India,” he said. “Around 90% of first-time bookers from India in 2023 belonged to the millennial and Gen Z demographics.”
This suggests a vast untapped opportunity, he said.
Airbnb reported revenue of $2.2 billion in the fourth quarter of 2023, up 17% from the year earlier. The company said it saw a strong growth in nights and experiences booked, which drove $15.5 billion of gross booking value in the quarter. It has over 5 million hosts and 7.7 million active listings.
While the company is committed to the core business, it’s also seeking potential extensions, Blecharczyk said.
He was elaborating on co-founder and CEO Brian Chesky recently talking about Airbnb being at an inflection point after three years of perfecting its core service and being poised for its next chapter.
“Before Covid, Airbnb had been on a decade-long growth trajectory, expanding into various travel sectors like hotels, flights, and even publishing. However, the pandemic forced us to pause these endeavours and refocus solely on our core business," he said. “While we're committed to our core business, we also acknowledge our capacity, as Brian noted, to explore potential extensions. Hence, we're actively investing in these opportunities, although we're not ready to launch them just yet. Rest assured, in future discussions, we'll be excited to delve into these developments further.”
Blecharczyk said AI has been playing a crucial role in the business and it recently expanded its application to photo tours. “This feature simplifies the process for hosts by automatically categorising their uploaded photos based on room types, thereby creating visually appealing home tours effortlessly,” he said.
On dealing with increasing regulation around the world, Blecharczyk said this is inevitable and beneficial.
“Rather than resisting regulation, we seek to collaborate with governments to ensure fairness and balance in the rules,” he said. “Our goal is to create a mutually beneficial model that contributes positively to the economy.”
Clear regulations provide hosts with guidance on permissible activities and establish a framework for responsible engagement, he said. Airbnb, with 16 years of experience, acknowledges the importance of regulations and about 80% of its top 200 markets already have regulatory measures in place, he said.
Airbnb's new Icons category will showcase experiences hosted by the “greatest” names in music, film, television, art, sports, and more, Blecharczyk said. Airbnb said Thursday as part of this launch, Bollywood actress Janhvi Kapoor is opening doors to her family’s never-seen-before estate in Chennai in India.
Icons will provide “unparalleled immersion,” Blecharczyk said. “To begin with, there are inaugural 11 Icons, featuring locales like Disney and Pixar's Up house, the illustrious X-Mansion, and the esteemed Ferrari Museum, with additional experiences slated for release throughout the year.”
Blecharczyk said in recent years, the company has pioneered ‘exclusive’, limited-edition experiences, including notable ventures in India.
“For instance, we've opened the doors of the City Palace in Jaipur under the patronage of its king and hosted cricket legend Yuvraj Singh at his holiday abode,” he said. “These initiatives have garnered immense interest, with some experiences amassing 4.5 million page views last year alone. Recognizing the fervent engagement, we're thrilled to extend these extraordinary opportunities to our guests,” he added.
In the context of recent inflation and heightened demand since Covid, Blecharczyk said Airbnb has observed a general uptick in prices across the hospitality industry, including hotels.
“However, Airbnb's pricing has remained relatively stable over the past year,” he said. “This stability, coupled with the enhanced pricing tools we offer hosts, ensures that they can adapt to market conditions and maintain competitive pricing strategies effectively.”
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