Airbnb Marketplace Health: Picking One North-Star Measure for Guests and Hosts

If Airbnb could watch only one number to judge whether it is creating value, which metric should that be? Propose it and defend the choice. ```hint Check both sides of the trade Ask what has to happen for a guest and a host to both come away better off, and test each candidate metric against a transaction where one of them did not. ``` ### Clarifying Questions - Is the metric for Airbnb as a whole, or only for the stays business rather than experiences? - Should it weigh guests and hosts equally, or is one side of the marketplace the focus? - Is it meant for company-level strategy over quarters and years, or as something product teams move week to week? - Is the company prioritizing growth right now, or profitability and quality? ### What a Strong Answer Covers - A clear statement of the value Airbnb creates for guests and for hosts, and how the chosen metric reflects both. - A comparison of plausible candidates (bookings, nights, gross booking value, revenue, active users) with the reason each wins or loses. - A precise definition: the counting rule, time window, and treatment of cancellations, refunds and long stays. - Input metrics that teams can move, and guardrail metrics that stop the north star from being gamed. - How the choice would be validated, for example by checking that it predicts retention and long-term revenue. ### Follow-up Questions - Your metric rises while the average guest review score falls. What do you conclude, and what do you do? - How would your answer change if Airbnb made stays of a month or longer a strategic priority? - Which input metric would you give the search and ranking team, and how does it connect to your north star?