Evaluate adding zero-price tour and activity listings to Airbnb Experiences

Quick Overview

An Airbnb Experiences product strategy prompt asking whether to let users book tours and activities that cost nothing. It tests marketplace thinking about guests, paying hosts and Airbnb's revenue, the second-order risks of zero-price listings, and turning the analysis into a clear recommendation with a test plan.

Evaluate adding zero-price tour and activity listings to Airbnb Experiences

Company: Airbnb

Role: Product Manager

Category: Product Design & Strategy

Difficulty: medium

Interview Round: Other

You are the product manager for Airbnb Experiences, the part of Airbnb where travelers book activities led by local hosts. Someone has put an idea on your backlog: let users book tours, activities and experiences that cost nothing. Should Airbnb build it? Make a call and explain why. ```hint Follow the incentives A zero price changes what every side of the marketplace gets. Think about who would host for free and why, how hosts who charge would react, and what Airbnb earns or spends on a booking with no price. ``` ### Clarifying Questions - What does "free" mean here: free to the guest with the host paid by someone else (a sponsor, a tourism board, Airbnb), tip-based, or a host who is genuinely unpaid? - Would free experiences be open to anyone, or only to guests who have a stay booked? - What problem is the idea meant to solve: few guests trying Experiences, thin supply in some cities, or more bookings of stays? - Are there limits I should respect on spending, host quality standards, or the markets involved? ### What a Strong Answer Covers - Airbnb's goals for Experiences and the specific problem a free offering would or would not solve. - The effect on each side of the marketplace: guests, hosts who charge today, hosts who would list for free, and Airbnb's own economics. - The second-order risks of zero-price listings for attendance, quality, trust and the paid catalog. - A clear recommendation (build, do not build, or build a narrower version) with the test that would validate it. - Success metrics and guardrails tied to that recommendation. ### Follow-up Questions - Your pilot shows a high no-show rate on free bookings. How would you fix it without putting a price on them? - A city's tourism board offers to sponsor free tours on the platform. Would you accept, and what rules would you set? - How would you tell whether free experiences pull guests into paid experiences and stays, rather than replacing them?

Overview: An Airbnb Experiences product strategy prompt asking whether to let users book tours and activities that cost nothing. It tests marketplace thinking about guests, paying hosts and Airbnb's revenue, the second-order risks of zero-price listings, and turning the analysis into a clear recommendation with a test plan.

Airbnb logo
Airbnb
Dec 21, 2024
mediumProduct ManagerOtherProduct Design & Strategy
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You are the product manager for Airbnb Experiences, the part of Airbnb where travelers book activities led by local hosts. Someone has put an idea on your backlog: let users book tours, activities and experiences that cost nothing. Should Airbnb build it? Make a call and explain why.

Clarifying Questions Guidance

  • What does "free" mean here: free to the guest with the host paid by someone else (a sponsor, a tourism board, Airbnb), tip-based, or a host who is genuinely unpaid?
  • Would free experiences be open to anyone, or only to guests who have a stay booked?
  • What problem is the idea meant to solve: few guests trying Experiences, thin supply in some cities, or more bookings of stays?
  • Are there limits I should respect on spending, host quality standards, or the markets involved?

What a Strong Answer Covers Guidance

  • Airbnb's goals for Experiences and the specific problem a free offering would or would not solve.
  • The effect on each side of the marketplace: guests, hosts who charge today, hosts who would list for free, and Airbnb's own economics.
  • The second-order risks of zero-price listings for attendance, quality, trust and the paid catalog.
  • A clear recommendation (build, do not build, or build a narrower version) with the test that would validate it.
  • Success metrics and guardrails tied to that recommendation.

Follow-up Questions Guidance

  • Your pilot shows a high no-show rate on free bookings. How would you fix it without putting a price on them?
  • A city's tourism board offers to sponsor free tours on the platform. Would you accept, and what rules would you set?
  • How would you tell whether free experiences pull guests into paid experiences and stays, rather than replacing them?