Estimation question

Estimate Airbnb's annual revenue in the US.

Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.

What this question tests

Estimation combining bookings volume, average price, and take-rate assumptions to reach a revenue figure.

Estimate US nights booked annually, derived from a rough US listing count times average occupancy.
Estimate average nightly price for a US listing, say roughly $150-200 a night.
Multiply nights booked by average price to get gross booking value for the US.
Apply Airbnb's take rate, the commission it keeps combining host and guest fees, roughly mid-teens percent, to GBV to get actual revenue.
State the final figure as an order of magnitude with assumptions clearly labeled.

Correctly distinguishes gross booking value from Airbnb's actual revenue by applying a take-rate assumption, a common miss on this type of question.
Uses labeled, round assumptions at each step: listings, occupancy, nightly price, take rate.
Sanity checks the resulting figure against the general scale of Airbnb's known global revenue.

Presenting gross booking value as if it were Airbnb's revenue, skipping the take-rate step entirely.
Not stating an explicit take-rate assumption, leaving the final number unexplained.

Chapters of the AI PM course that teach what this question tests.