Strategy question
Should Google offer an Airbnb compeititor?
- Strategy
- Hard
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What this question tests
Tests strategic market-entry reasoning, weighing Google's real assets and antitrust exposure against a crowded, trust-dependent marketplace.
How to approach it
- Assess the market: short-term rentals are dominated by Airbnb and Vrbo, with strong host-side network effects and trust built over years.
- Assess Google's assets: massive search distribution and Google Maps data, but no existing host relationships, trust infrastructure or hospitality operations experience.
- Weigh the antitrust angle: Google already faces scrutiny for favoring its own products in search results, and a rental marketplace invites similar concerns.
- Recommend against building a full competing marketplace; instead, deepen Google's existing travel search and Maps integration to aggregate listings from Airbnb and others.
- Define success for the aggregation approach as travel search click-through to booking partners and ad revenue from travel-related queries.
What a strong answer includes
- Weighs real network-effect and trust barriers to entry rather than assuming Google's scale alone guarantees success.
- Raises antitrust exposure explicitly, a genuinely relevant constraint for Google entering an adjacent marketplace.
- Proposes a lower-risk alternative, aggregation and search integration, that still leverages Google's core strength.
Common mistakes
- Assuming Google's scale and resources alone are enough to win against Airbnb's host-trust network effects.
- Ignoring antitrust risk, a real and current concern for Google's product decisions.
Likely follow-up questions
- How would you differentiate an aggregation approach from just being a Google Travel widget?
- What would change your recommendation if Airbnb's host satisfaction were declining?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop