India is facing an unprecedented wave of short-term rentals and is being forced to look at a broader picture as it seeks to attract the billions of short term renters expected to take to the roads.
A growing number of Indian cities are looking to Airbnb for help, including Delhi, Bangalore, Hyderabad and Chennai.
The Airbnb boom has led to a number of policy changes in India.
While many cities in the country have started implementing a one-day stay ban, others have moved in the opposite direction.
In Bengaluru, residents can stay with a host for an average of 12 nights a year.
The hotel, known as the “hotel of the city”, is owned by the government, but its popularity is not restricted to those living in the city.
According to a report by the research arm of the Indian Association of Accredited Hotel Consultants, the hotel has been a hotbed of activity for Airbnb hosts since the company opened its first host in the capital in September 2017.
The number of guests booking nights at the hotel rose from 1,200 in the first half of 2018 to 1,500 in June 2019.
That is an increase of 2,000 over the same period in 2016.
Many of the Airbnb hosts are staying in the hotel during their stays and are offering the rooms to tourists, who can stay overnight or for as long as they want.
A host who does not live in the house and who is not a member of the host family, however, is not allowed to rent the room.
The policy allows Airbnb hosts to remain in the guesthouse if they meet the requirements of the local government, such as a minimum of three guests and a minimum stay of at least four nights.
The government has also imposed a 10-percent deposit on all Airbnb hosts in Delhi, while it has also tightened rules on the sharing of guest rooms in the Indian capital.
The rules, which are not as strict as those in cities like Delhi, restrict Airbnb hosts from renting rooms to non-residents for up to 90 days and limit hosts to renting only rooms that they own.
Airbnb hosts have also been required to pay a one lakh rupee (US$1,942) deposit to the government for each night they stay in the host house.
Some cities have also imposed limits on how many rooms a host can rent and if a host has to pay extra money for extra rooms.
“I think the government has gone in the right direction by having more stringent rules,” said Anu Bhagwati, a lecturer at the Centre for Development Studies at Jawaharlal Nehru University.
“But we are still seeing many hotels resort to these tactics,” she added.
Airbnb has also seen an increase in demand from Indian tourists and hosts in recent months.
The company says it has welcomed 3,000 reservations in the past 12 months.
It says that its popularity has also grown as the number of short stay rentals in India has risen.
In September, the company had an annual turnover of US$2.2 billion, and as of March, it had booked more than 9,000 Airbnb hosts.
In the first quarter of 2018, the number had increased by over 400 percent.
The increase in Airbnb guests has helped to attract new short-stay hotel operators.
In 2018, Airbnb hosts booked about 2.1 million rooms in India, an increase from around 500,000 in the same quarter of 2017.
Airbnb also said it had attracted 2,200 additional host family members in the last year.
Airbnb is not the only company in the market.
In January, BHEL, an Indian travel agency, reported that Airbnb had added a total of more than 100,000 host family partners across India.
This is an improvement over the year-ago period, when the number was just 20,000.
However, the growth in Airbnb users is still not matching the growth of host families.
In 2019, Airbnb reported that its total number of hosts and host families had increased from around 6,500 to about 10,500.