Choosing a North Star Metric for Airbnb's Two-Sided Marketplace

If Airbnb could follow only one number to judge how well it is doing, which metric should it be? Define it precisely and explain why it beats the alternatives. ```hint Count what both sides need Airbnb earns money only when a guest and a host complete a stay together. Look for a number that moves only when both sides get value, then ask what it fails to capture. ``` ### Clarifying Questions - Is this the metric for the company as a whole, or for one team such as search, host growth or trust and safety? - Should it cover stays only, or Experiences as well? - Is the metric meant to steer product decisions week to week, or to report the health of the business to investors? ### What a Strong Answer Covers - How Airbnb creates value and earns money as a two-sided marketplace, used to justify the choice - A precisely defined metric compared with alternatives such as revenue, booking value, active users and listings - The metric's blind spots, with guardrails for guests, hosts, trust and profitability - How the metric breaks down into inputs that teams can move - Supply and demand health considered together ### Follow-up Questions - Your metric rises while the share of guests who book again falls. What could be happening, and what would you check? - Which metric would you give the team that recruits new hosts, and how does it connect to yours? - How could a team inflate your metric without making Airbnb better, and how would you catch it?