Imagine you’re a Product Manager at Airbnb. You have been assigned the task of adding a new feature that could be useful to the Airbnb user base. It must include an integration with an external third-party/non-Airbnb API.
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My first question for the iv is, what is the business feature you wish to improve?
The channels through which Airbnb generates revenue are:
- Service Fees: the main revenue.
- Host commission.
- Advertising and promotion.
- Experiences and activities.
- Host protection insurance.
I choose Service Fees as the business revenue channel to be improved.
I segment the users by the purpose for which the booking will be used
- Vacation accommodation: one of the primary purposes.
- Business travel: for longer stays or when attending conferences or events in different cities.
- Short-term rentals: such as temporary relocations, home renovations, or visiting family and friends.
- Special events or celebrations: such as weddings, birthdays, or anniversaries.
- Local experiences: such as tours, workshops, and cultural activities.
I will focus on the segments of Vacation accommodation, and Short-term rentals because I consider these are the purposes that bring the most visits from users.
These are the users' needs and pains list from these two users' segments, related to the using purpose.
Needs and Pains
- Book the right place: Users want to book the right place according to their expectations and the purpose of the booking. They look for a comfortable place and safety, well-maintained properties with essential amenities and security features, conveniently located near tourist attractions, restaurants, public transportation, or other points of interest, and the right accommodation type such as entire homes, apartments, private rooms, or shared spaces.
- Budget: users have budget constraints and look for accommodations that fit within their financial limits.
- Uncertainty and Risk: particularly if they are unfamiliar with the property or destination.
- Complexity of Options: the abundance of choices can make the navigation challenging to compare properties and make informed decisions.
- Lack of Trust and Verification: Concerns about inaccurate descriptions, misleading photos, or unreliable hosts can undermine confidence in the booking process.
According to revenue potential and the complexity of implementing an upgrade
Book the right place | High | Medium | Increase the conversion rate. Improving this requirement depends on the amount and quality of the accommodations published, and that depends on the good results provided by the booking platform to the hosts. |
Budget | Medium | High | Increase the conversion rate. Implies increment the booking offer and/or the payment options. |
Uncertainty and Risk | Low | High | Low impact on the conversion rate. Adding more verifications to decrease this risk could be difficult in some regions. |
Complexity of Options | Low | Medium | Low impact on the conversion rate. The current platform is proficient in this aspect. |
Lack of Trust and Verification | Medium | Medium | Increase the conversion rate. Improving this depends on the quality of the publication performed by the publisher and the validations performed by the platform. |
I will focus on the following need and pain
- Book the right place
- Lack of Trust and Verification
These are some solutions that involve an external third-party/non-Airbnb API.
- Add to publications the option of a kind of "augmented experience" leveraged with AI, taking the published photos and adding elements with AI prompts, showing what this place could look like for different purposes of uses where it is allowed.
- Use AI to improve posts by helping users with data to complete their posts such as descriptions, photo enhancements, and other recommendations by taking similar previous posts.
- Use blockchain technology to verify user identity and improve security and transparency on the platform. By implementing blockchain-based solutions, Airbnb can increase user trust and improve the overall booking and hosting experience.
- Add a section of recommended activities as well as places to visit on the navigation page of the publication based on location and other options that the user can select, to help during the user's search and decision making.
I'll evaluate the solutions estimating the effort, the ux impact, and the business impact
AI-augmented experience | Medium (we could use tools like Sora, DALL-E, and others) | High (it suggests experiencies, it would be something new) | High (would promote the platform and increase the conversion rate) |
Use AI to improve posts | Medium (could use some LLM APIs available on the market) | Medium (facilitate the post creation to the users) | Medium (better posts improve conversion rates) |
Use blockchain to verify user identity | High (could be hard to implement) | Medium (people trust on blockchain) | Medium (trust increasing, improve conversion rates) |
Recommended activities y and places | Low (current data could be used for this proposal) | Medium (could be useful) | Low (could be out of the business scope) |
Finally, my choice is the AI-enhanced experience. It would be something novel that helps the user to make the decision, and thus increase conversion rates on the platform.
As third-party APIs for implementation, OpenIA's APIs for image manipulation could be used, which with the help of graphic designers and using data such as location, weather, and date of the year, we could achieve great compositions applied to the published photos.
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Step 1 - Describe the product
is a product where hosts can host guests in a free room that they have. It behaves like a marketplace of rooms where the host can add rooms and the guests can book those rooms
Step 2 - Scope the question
I wanted to understand if there is any specific part of the app you wanted me to focus on. Also, when you say "useful", how would be define that. Is that an increase in engagement, or anything else?
For now, I will assume I can focus on any part of the app and look at increasing the engagement.
Step 3 - List the user groups and pick one
AirBnB is really a 2 sided marketplace that has the hosts and the guests. There is a flywheel effect in that if there are more bookings, there will be more hosts as word spreads that this is a nice way to earn a side income, and as there are more hosts, there will be more guests. Is there any specific experience (host vs guest) that you want me to focus on.
I will assume that we will focus on the guest experience here.
Also, a guest can visit for a leisure visit or a business trip. I will focus on the casual visit use cases here.
Step 4 - List and prioritize the pain points
Journey | Pain Point | Severity |
Search for Airbnb in the area you are visiting | How far is the AirBnB from various points in my itinerary | L (This is a huge pain point when I am trying to book an accomodation) |
What transport options are available to reach the place | S (You can ask around and Uber is always available) | |
How safe is the area where I am staying | L (Safety is an issue in today's world) | |
Book your AirBnb | NA | NA |
Land at the airport and visit the AirBnB to check in | No one is available to give me the keys | S (There are existing solutions including calling and chatting with the host) |
The room isn't clean | S (There are existing solutions including calling and chatting with the host) | |
Do your sightseeing and then go back | Best place to get the local shopping experience. | L (it isn't that easy for normal tourists to get a great local shopping exprience) |
Unable to find good places to eat | L (The best places to eat are often something that people seek out when they visit a new place) | |
If I am buying passes, such as rail passes or amusement park passes, I need to keep them someplace safe and they could get lost | S (Apple Wallet and Google Wallet are already available for this) | |
Vacate your AirBnB on your check out date | Unable to get a ride back to the airport | NA |
Unaware of the traffic situation at that time of the day. | S (You will usually check the local traffic conditions so it wont be that much of a surprise) |
Based on the above, there are 4 pain points that we should focus on.
- How far is the AirBnB from various points in my itinerary?
- How safe is the area where I am staying?
- It is very confusing to understand the best place to get a local shopping experience
- Unable to find good places to eat
Step 5 - List the solutions and their priorities
Pain Point | Solution | Impact | Engineering Effort |
How far is the AirBnB from my itinerary | Have a map view of AirBnB to see where it is | S (This can already be done in the current experience) | None |
Search for a specific area and book there | S (Can already be done with the current experience) | None | |
Upload your itinerary and get recommendations based on the closest AirBnBs | L (If you can upload the current itinerary in a format set by AirBnB then we can take a look at the places and recommend best AirBnBs in that area. We know that downtown is a great place to stay but very expensive, however there will be some properties that will be reasonably priced even there.) | M (A new section with a format for uploading the daywise itinerary and then we need to integrate with the Google Maps Places API to see what could be the most central location) | |
How safe is the area | Ask other AirBnB guests who stayed at the place | S (Could be a privacy issue but we could take their permission before hand. However, no integration available here) | S (Not much in terms of effort here) |
Summarize reviews of the place from other AirBnB guests | L (This will be a good one to have. We can integrate with a foundational LLM to summarize the reviews) | M (Need the relevant infrastructure and the training data) | |
Pull data from newspapers/local news transcripts to check if any issue has happened recently | M (This will be nice to have to see local reports from the area where you will be staying) | L (Will need to pull in from multiple sources and currently, the data itself is not that available for training) | |
Not able to find good places to eat | Ask your host/other guests what were some of the good places they ate at | S (Asking your host is available even now) | None |
Summarize Google reviews of the best places based on the itinerary | L (Not everyone reviews on Google. People prefer Yelp in the US for eg. but Google is available everywhere) | M (Should be able to leverage Gemini for this) | |
Summarize Yelp/ other local reviews of some restaurants | L (Yelp is great in the US, but each country has its own restaurant discovery product, so pulling from the relevant ones will be nice) | L (Logistical issue because if we are launching this worldwide, we will have to integrate with multiple service providers) |
Hence, the recommendation would be to implement the following :
- Upload your itinerary and get recommendations based on the closest AirBnBs (Google Maps Integration)
- Summarize reviews of the place from other AirBnB guests (Foundational Model such as GPT)
- Summarize Google reviews of the best places based on the itinerary (rely on a Gemini API)
Step 5 - Metrics
We can rely on the following metrics :
- The % of people who have booked AirBnBs via the itinerary
- The ratings of people who booked via the itinerary
Step 6 - Summarize
We were looking at adding a feature that would be useful to AirBnB users, with the caveat that it should include a third party API. We decided that we would look at the app for the guest user flow. In the journey we identified the following pain points.
- How far is the AirBnB from various points in my itinerary?
- How safe is the area where I am staying?
- It is very confusing to understand the best place to get a local shopping experience
- Unable to find good places to eat
We brainstormed solutions and came up with the following recommendations
- Upload your itinerary and get recommendations based on the closest AirBnBs (Google Maps Integration)
- Summarize reviews of the place from other AirBnB guests (Foundational Model such as GPT)
- Summarize Google reviews of the best places based on the itinerary (rely on a Gemini API)
To assess the performance of the feature, we will look at the following metrics
- The % of people who have booked AirBnBs via the itinerary
- The ratings of people who booked via the itinerary
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