From Goa to Kerala, from Mangaluru to the Nilgiris, from Himachal to Uttaranchal, across the vast swathe of India’s leisure destinations, the private villa business is a booming one. It is no wonder that W Goa’s General Manager Tanveer Kwatra calls the private rental villas his biggest competitors rather than other star luxury hotels. “Branded luxury hotels and villas are essentially targeting the same consumer group, and those looking for more privacy and spending time with family and friends find hiring an entire villa far more convenient,” he says.
Villas are huge competition to luxury hotels, particularly in the leisure markets.
Much more than bed and breakfast
Airbnb launched its operations in India more than a decade ago by tying up with various bed and breakfasts across the country. But just as it did globally, expanding from air beds and shared spaces to a variety of premium properties, including entire homes and apartments, castles, boats, manors, tree houses, tipis, igloos, and even private islands, it added a host of luxury vacation rentals in India, too. A recent report by Oxford Economics, a leader in global forecasting and quantitative analysis, shows that Airbnb contributed over USD$920 million to India’s GDP and supported over 85,000 Indian jobs in 2022 alone. A large factor in this is family and multi-generational travel post the COVID-19 pandemic. In India, family travel on Airbnb grew by over 90% in 2022 compared to before the pandemic in 2019.
Airbnb research suggests that families most likely book Airbnb listings because of the value and space they receive, getting more bedrooms and bathrooms than they would at the equivalent cost at a luxury hotel. Many private villas also offer cribs for small children, their kitchens, and are pet friendly.
Fun fact: More than five million pets travelled on Airbnb listings in the last few years.
“Families increasingly prioritise spending quality time together and seeking meaningful travel experiences that foster cultural exchange, purposeful trips are gaining popularity among Indian travellers. They are spending more on domestic and international travel and are more willing to support local communities and small businesses,” observes Amanpreet Bajaj, Airbnb’s General Manager for India, Southeast Asia, Hong Kong, and Taiwan.
