September 17, 2025
3 mins read

Airbnb Boosts India Economy

Among international guests, the largest inbound sources were the United States, United Kingdom, Canada, and Australia

Hospitality giant Airbnb made a significant impact on India’s economy in 2024, contributing Rs 113 billion to the nation’s GDP while supporting 111,000 jobs, according to a new report commissioned from Oxford Economics. The report highlights Airbnb’s growing role in driving domestic tourism and creating employment opportunities across multiple sectors.

In addition to its GDP contribution, Airbnb generated Rs 24 billion in wage income for workers, underscoring the platform’s role in fostering economic growth. The analysis found that Airbnb-supported tourism sustained approximately 38,000 jobs in transport and storage, 19,600 in food and beverage services, 16,800 in wholesale and retail trade, and 10,700 in manufacturing. These figures illustrate the wide-ranging impact of the platform beyond the hospitality industry.

The report noted a strong increase in domestic travel, with Indian travellers accounting for around 91 per cent of Airbnb bookings in 2024, up from 79 per cent in 2019. This surge in domestic demand was particularly driven by younger Indian travellers exploring urban hubs and offbeat destinations, positioning India as one of Airbnb’s fastest-growing markets globally.

Among international guests, the largest inbound sources were the United States, United Kingdom, Canada, and Australia. Overall, Airbnb guest spending in India reached Rs 112 billion in 2024, encompassing both accommodation and non-accommodation expenses such as dining, transport, and local experiences.

Airbnb’s footprint accounted for 0.5 per cent of India’s travel and tourism GDP in 2024 and supported 0.2 per cent of tourism-related employment, equivalent to one in every 417 tourism-related jobs. Beyond core tourism sectors, Airbnb’s economic influence extended to the wider economy, contributing Rs 31 billion in transport and storage, Rs 15 billion in agriculture, Rs 13 billion in real estate, and Rs 12 billion in manufacturing.

“India’s tourism sector is driven by strong demand among domestic travellers. From bustling urban cities to tranquil small towns, Indian travellers are exploring the richness and diversity of their own country,” said James Lambert, Director of Economic Consulting Asia for Oxford Economics. He added that the growing domestic tourism market also points to untapped potential in international tourism, which could be harnessed through strategic partnerships with global platforms to boost inbound travel and enhance India’s global appeal.

Amanpreet Bajaj, Country Head for Airbnb India and Southeast Asia, emphasized the platform’s role in supporting local economies. “This report shows how domestic travel continues to be the primary engine of tourism in India. Airbnb fuels micro-entrepreneurship, boosts allied sectors, and supports small businesses across both emerging and lesser-known destinations,” Bajaj said.

The report’s findings also underscore the importance of domestic travel in sustaining India’s tourism sector, particularly amid global uncertainties that have impacted international travel. By connecting travellers with a range of accommodation options, Airbnb is helping small business owners and hosts across India generate income, diversify their revenue streams, and participate in the broader tourism economy.

With India emerging as one of Airbnb’s fastest-growing markets, the platform’s contributions reflect a broader trend of tech-enabled tourism facilitating economic growth, employment creation, and regional development. Analysts suggest that leveraging this momentum through targeted policies and international marketing could further enhance India’s standing as a global tourism destination.

As domestic travellers increasingly explore the country’s urban and rural offerings, Airbnb’s model demonstrates how technology-driven platforms can expand access to tourism, promote economic inclusivity, and sustain livelihoods across multiple sectors.

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