Product design question
You are the CEO of a company that wants to offer valet parking as a service for hotels. What would you do?
- Product design
- Hard
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What this question tests
Business and product design thinking for a B2B service offering: identifying the customer, the value proposition, and the operating model.
How to approach it
- Clarify the business model: outsourced valet parking for hotels, paid per-vehicle or via revenue share with the hotel.
- Identify the customer, hotel operations, and their pain: staffing and liability costs of in-house valet, and inconsistent guest experience.
- Define the value proposition: lower cost and liability via a trained, insured, tech-enabled workforce, plus an app for guests to request their car ahead of time.
- Propose the pricing model: a per-hotel contract priced per vehicle handled, with the app experience as a differentiator against local valet operators.
- Define success as hotel contract retention rate, average guest wait time for car retrieval, and revenue per hotel location.
What a strong answer includes
- Frames this correctly as a B2B service business and identifies the hotel operator as the real customer.
- Names a concrete differentiator, app-based advance car requests reducing wait time, versus incumbent operators.
- Defines metrics for both sides: hotel retention and guest wait time.
Common mistakes
- Designing only a consumer app and ignoring the B2B sales and contract relationship with hotels, the core of the business.
- No mention of liability or insurance, a critical constraint for a valet business.
Likely follow-up questions
- How would you price this differently for a boutique hotel versus a large convention hotel?
- How would you handle liability if a valet damages a guest's car?
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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 7: AI UX and human oversight: design for a system that is wrong sometimes
- Chapter 14: Get the job: the AI PM interview loop