THE THREE CITY AIRBNB BUSINESS GUIDE
Varanasi. Jaipur. Indore. Full setup under Rs 3 lakh per city. Airbnb data: Airbtics March 2026. Rental data: 99acres May 2026.
This guide covers everything you need to start an Airbnb in three of India's best Tier 2 markets. Market data, full budget breakdown with inclusions and exclusions, P&L; model, and the exact questions to ask before you sign a lease.
Three City Snapshot (Airbtics, March 2026)
| City | Airbtics Grade | Occupancy | ADR/Night | Annual Revenue | Active Listings | Full Setup Cost |
|---|---|---|---|---|---|---|
| Varanasi | A -- Top 5% | 39% | Rs 2,837 | Rs 4.10L | 1,175 | Rs 2.05L |
| Jaipur | B+ -- Top 16% | 35% | Rs 2,921 | Rs 3.82L | 1,884 | Rs 2.35L |
| Indore | Not graded | 36% | Rs 2,253 | Rs 3.01L | 254 | Rs 2.05L |
All revenue figures are median. Top quartile performers earn 2-3x median. Setup cost includes AC, TV, and full furnishing from scratch.
VARANASI
Grade A | Top 5% in India | Spiritual Tourism | Grade A Market
| Metric | Data | Source |
|---|---|---|
| Median occupancy | 39% | Airbtics Mar 2026 |
| Average daily rate | Rs 2,837/night | Airbtics Mar 2026 |
| Annual revenue (median) | Rs 4.10 lakh | Airbtics Mar 2026 |
| Active listings | 1,175 | Airbtics Mar 2026 |
| Supply growth YoY | +62% | Airbtics Mar 2026 |
| International guests | 36.6% | Airbtics Mar 2026 |
| Peak months | Oct, Nov, Dec, Feb | Airbtics seasonality |
| Weakest month | May (19.5% occupancy) | AirROI Feb 2026 |
| Tourist arrivals 2024 | 11 crore+ | UP Tourism Dept |
Full Setup Budget -- Varanasi (Unfurnished 2BHK, Good Tourist Area)
| Item | Amount | Notes |
|---|---|---|
| Monthly rent (first month) | Rs 12,000 | Verified: 99acres, near Lanka/Assi Ghat area |
| Security deposit (2 months) | Rs 24,000 | Standard in Varanasi |
| Beds x2 with mattresses | Rs 32,000 | Mid-range, guest quality |
| Bed frames | Rs 10,000 | |
| Sofa set (living room) | Rs 16,000 | |
| Dining table and chairs | Rs 7,000 | |
| Wardrobes x2 | Rs 10,000 | |
| Split AC 1.5 ton | Rs 32,000 | Essential for summer bookings |
| TV 32 inch | Rs 12,000 | Guest expectation |
| Geyser | Rs 4,000 | |
| Fans if not fitted (x3) | Rs 6,000 | |
| Curtains all rooms | Rs 5,000 | |
| Kitchen setup (utensils, crockery, kettle) | Rs 7,000 | |
| Linen (3 sets per bed, towels) | Rs 8,000 | |
| Decor, wall art, plants | Rs 8,000 | Critical for photos |
| WiFi setup and first month | Rs 2,500 | |
| Professional photography | Rs 8,000 | Non-negotiable. Do not skip. |
| Miscellaneous (lock, bulbs, hangers) | Rs 4,000 | |
| TOTAL | Rs 2,15,500 | Under Rs 3 lakh |
Grade B+ | Top 16% in India | JAIPUR Heritage Tourism | Destination Weddings
| Metric | Data | Source |
|---|---|---|
| Median occupancy | 35% | Airbtics Mar 2026 |
| Average daily rate | Rs 2,921/night | Airbtics Mar 2026 |
| Annual revenue (median) | Rs 3.82 lakh | Airbtics Mar 2026 |
| Active listings | 1,884 | Airbtics Mar 2026 |
| Supply growth YoY | +40.6% | Airbtics Mar 2026 |
| International guests | 21.2% | Airbtics Mar 2026 |
| Peak months | Oct, Nov, Dec, Jan | Airbtics seasonality |
| Best areas for Airbnb | Bani Park, Civil Lines, C-Scheme | Proximity to Palace, Hawa Mahal |
Full Setup Budget -- Jaipur (Unfurnished 2BHK, Tourist Area)
| Item | Amount | Notes |
|---|---|---|
| Monthly rent (first month) | Rs 15,000 | Verified: 99acres, Bani Park/Civil Lines |
| Security deposit (2 months) | Rs 30,000 | Standard in Jaipur |
| Beds x2 with mattresses | Rs 35,000 | Rajasthani design option adds value |
| Bed frames | Rs 10,000 | |
| Sofa set | Rs 20,000 | |
| Dining table and chairs | Rs 10,000 | |
| Wardrobes x2 | Rs 12,000 | |
| Split AC 1.5 ton | Rs 32,000 | Essential. Rajasthan summers are extreme. |
| TV 32 inch | Rs 12,000 | |
| Geyser | Rs 4,500 | |
| Fans x3 | Rs 7,000 | |
| Curtains | Rs 6,000 | |
| Kitchen setup | Rs 8,000 | |
| Linen (3 sets per bed, towels) | Rs 9,000 | |
| Decor -- Rajasthani theme adds ADR | Rs 12,000 | Heritage themed decor gets higher ratings |
| WiFi setup and first month | Rs 2,500 | |
| Professional photography | Rs 10,000 | Jaipur properties photograph beautifully |
| Miscellaneous | Rs 4,500 | |
| TOTAL | Rs 2,55,500 | Under Rs 3 lakh |
Grade -- | Lowest Competition | 254 INDORE Listings | First Mover Advantage
| Metric | Data | Source |
|---|---|---|
| Median occupancy | 36% | Airbtics Oct 2025 |
| Average daily rate | Rs 2,253/night | Airbtics Oct 2025 |
| Annual revenue (median) | Rs 3.01 lakh | Airbtics Oct 2025 |
| Active listings | 254 only | Airbtics Oct 2025 |
| Supply growth YoY | +15.5% | Slowest growth of three cities |
| International guests | 12.5% | Predominantly domestic |
| Peak months | Dec, Sep | Airbtics seasonality |
| Best areas for Airbnb | Vijay Nagar, Palasia, AB Road | Near business and restaurants |
Full Setup Budget -- Indore (Unfurnished 2BHK, Vijay Nagar Area)
| Item | Amount | Notes |
|---|---|---|
| Monthly rent (first month) | Rs 13,000 | Verified: 99acres, Vijay Nagar |
| Security deposit (2 months) | Rs 26,000 | Standard in Indore |
| Beds x2 with mattresses | Rs 32,000 | |
| Bed frames | Rs 10,000 | |
| Sofa set | Rs 16,000 | |
| Dining table and chairs | Rs 8,000 | |
| Wardrobes x2 | Rs 10,000 | |
| Split AC 1.5 ton | Rs 32,000 | Essential. Indore gets very hot. |
| TV 32 inch | Rs 12,000 | |
| Geyser | Rs 4,000 | |
| Fans x3 | Rs 6,000 | |
| Curtains | Rs 5,000 | |
| Kitchen setup | Rs 7,000 | |
| Linen (3 sets per bed, towels) | Rs 8,000 | |
| Decor, wall art, plants | Rs 8,000 | |
| WiFi setup and first month | Rs 2,500 | |
| Professional photography | Rs 8,000 | |
| Miscellaneous | Rs 4,000 | |
| TOTAL | Rs 2,17,500 | Under Rs 3 lakh |
Five Things to Do Before You Sign Any Lease
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-- Visit at least 3 properties in person or via video call. Do not commit to photos alone.
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-- Check the landlord specifically allows short-term rental or subletting. Not all do. Get it in writing.
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-- Walk the neighbourhood. Car access, parking, proximity to transport. Guests will ask all of this.
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-- Research the 10 best performing Airbnb listings in that area. Study their photos, pricing, and reviews.
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-- Build a 3-month runway buffer on top of your setup cost. Revenue takes time to stabilise.
Research by @iamsatyavyas | Airbnb data: Airbtics March 2026 | Rental data: 99acres May 2026 | May 2026