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Strategystandard
Should Airbnb get into the hotel booking business in a bigger way?
How to approach it
Ask what Airbnb's goal would be (growth, business travelers, filling gaps in supply) and whether hotels fit its brand promise of unique stays.
How a strong answer opens
“I'd first like to know what Airbnb wants from this: growth, more business travelers, or filling gaps where it lacks supply. Then I'll test whether hotels fit its promise of unique stays.”
Outline of a strong answer
Try answering out loud for a few minutes before you open this.
- Clarify the goal and the time horizon
- Size the opportunity: hotel booking spend versus Airbnb's current market
- Assess Airbnb's right to win: brand, app traffic, host tools
- Name the risks: diluting the brand, competing with large booking sites on thin margins
- Consider options: boutique hotels only, a partner deal, or no entry
- Recommend and name the signal that would change your mind
Where this question usually goes wrong
Saying yes because the hotel market is huge, without weighing brand dilution and the thin margins of competing with large booking sites.
Learn the method
Should we enter this market? in Module 5, Product strategy.
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