Plan a Threefold Increase in Airbnb's New-User Acquisition

Quick Overview

An Airbnb growth strategy question in which the company wants three times as many new users. It tests defining a new user and a baseline, sanity-checking the target, segmenting people who do not use Airbnb today, prioritizing growth levers on both sides of the marketplace, and setting metrics with guardrails.

Plan a Threefold Increase in Airbnb's New-User Acquisition

Company: Airbnb

Role: Product Manager

Category: Product Design & Strategy

Difficulty: medium

Interview Round: Other

You are a product manager at Airbnb, and the company wants three times as many new users. How would you get there? ```hint Break the multiple apart Tripling is too big for any single feature. Decide what counts as a new user, split that number into where new users come from and where they drop off, and look for the pieces that could plausibly grow several times over. ``` ### Clarifying Questions - Does "new user" mean a new sign-up, a first-time guest who completes a booking, or a new host, and does the target cover both sides of the marketplace? - Over what time frame should the number triple, and compared with which baseline period? - Is the goal global, or focused on particular countries or traveler segments? - Are there limits on spending, such as a cap on discounts or paid marketing? ### What a Strong Answer Covers - A precise definition of a new user and a baseline, plus a check on whether tripling is realistic and what it implies. - Segments of people who do not use Airbnb today, grouped by why, and a reasoned choice of where to focus. - Growth levers across reach, conversion to a first booking, and host supply, prioritized by impact and effort. - Metrics that count quality new users (completed first stays, repeat bookings) with guardrails for acquisition cost, trust and the host experience. - Risks of growing a two-sided marketplace quickly, such as supply shortages, incentive abuse or lower-quality stays. ### Follow-up Questions - Halfway through, sign-ups are on track but first bookings are flat. What do you do? - How would you keep host supply from falling behind a much larger flow of new guests? - If the paid marketing budget were frozen, which of your ideas would you keep?

Overview: An Airbnb growth strategy question in which the company wants three times as many new users. It tests defining a new user and a baseline, sanity-checking the target, segmenting people who do not use Airbnb today, prioritizing growth levers on both sides of the marketplace, and setting metrics with guardrails.

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Airbnb
Jun 18, 2026
mediumProduct ManagerOtherProduct Design & Strategy
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You are a product manager at Airbnb, and the company wants three times as many new users. How would you get there?

Clarifying Questions Guidance

  • Does "new user" mean a new sign-up, a first-time guest who completes a booking, or a new host, and does the target cover both sides of the marketplace?
  • Over what time frame should the number triple, and compared with which baseline period?
  • Is the goal global, or focused on particular countries or traveler segments?
  • Are there limits on spending, such as a cap on discounts or paid marketing?

What a Strong Answer Covers Guidance

  • A precise definition of a new user and a baseline, plus a check on whether tripling is realistic and what it implies.
  • Segments of people who do not use Airbnb today, grouped by why, and a reasoned choice of where to focus.
  • Growth levers across reach, conversion to a first booking, and host supply, prioritized by impact and effort.
  • Metrics that count quality new users (completed first stays, repeat bookings) with guardrails for acquisition cost, trust and the host experience.
  • Risks of growing a two-sided marketplace quickly, such as supply shortages, incentive abuse or lower-quality stays.

Follow-up Questions Guidance

  • Halfway through, sign-ups are on track but first bookings are flat. What do you do?
  • How would you keep host supply from falling behind a much larger flow of new guests?
  • If the paid marketing budget were frozen, which of your ideas would you keep?