Strategy question
What should Airbnb's strategy be during the COVID-19 pandemic?
Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.
Start a mock interview on this question · Mock interview from a job description
What this question tests
Crisis strategy: reprioritizing a roadmap and business model when core demand collapses overnight.
How to approach it
- State the immediate reality: travel demand cratered, hosts lost income, and guests canceled bookings en masse in 2020.
- Segment the response: protect the host side (income, cancellation policy fairness) and the guest side (refunds, trust) separately.
- Identify a near term opportunity: shift marketing and product toward local and long term stays, since cross border travel stopped.
- Propose product changes: flexible cancellation policies, filters for month plus stays, and outdoor or remote listings.
- Address the cost side: pause discretionary spend and headcount growth to preserve runway during the demand collapse.
- Plan for recovery: keep the marketplace liquid (both sides active) so it can snap back once travel resumes.
What a strong answer includes
- Splits the response into host trust, guest trust, and cash runway, which mirrors what Airbnb actually had to manage.
- Identifies the specific pivot to local and extended stays as the real opportunity in a no travel world.
- Names the tension directly: fair cancellation refunds for guests versus protecting host income, and proposes a policy that balances both.
- Gives an illustrative metric, e.g. assumes tracking active listings and booking rate for stays over 100 miles from home.
Common mistakes
- Treating this as a generic 'cut costs' answer without addressing the two sided marketplace trust problem.
- Ignoring the host side entirely and focusing only on guest experience.
- No mention of preserving marketplace liquidity for the eventual recovery.
Likely follow-up questions
- How do you balance host income against guest refund expectations?
- What would you measure weekly during the crisis?
- How would you know when to shift back to normal strategy?
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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