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.