Should Facebook consider getting into the Travel industry?

Certainly, I'll provide a detailed, strategic answer to the question "Should Facebook consider getting into the Travel industry?" from the perspective of a seasoned VP of Product. I'll structure the response as if I'm directly addressing the interviewer in a 30-40 minute product strategy discussion.

Introduction

Thank you for presenting this intriguing product strategy question. To address whether Facebook should consider entering the travel industry, we need to evaluate several key factors, including market opportunity, strategic fit, and potential impact on Facebook's core business. Our primary objectives in this analysis will be to identify growth opportunities, enhance user engagement, and explore potential synergies with Facebook's existing ecosystem.

I'll approach this question through the following strategic steps:

1. Clarify our strategic goals and context
2. Conduct a market and competitive analysis
3. Define a potential product vision and roadmap
4. Prioritize strategic initiatives
5. Outline an execution plan and resource allocation
6. Establish metrics and KPIs
7. Address risk management and contingency planning

Let's begin by clarifying some key strategic points to ensure we're aligned on the context and objectives.

Step 1

Clarify the Strategic Goals (3-4 minutes)

• Based on Facebook's position as a leading social media platform, I'm assuming that user engagement and data richness are key priorities. Could you confirm if expanding into new verticals like travel aligns with the company's current strategic focus on enhancing the core social experience or diversifying revenue streams?

Why it matters: Determines if we approach travel as an integrated social feature or a separate business unit Expected answer: Alignment with enhancing core social experience while exploring new revenue opportunities Impact on approach: Would focus on integrating travel features into the existing platform vs. creating a standalone travel product

• Considering Facebook's vast user base and data insights, I'm curious about the current level of travel-related activity on the platform. Can you share any insights on user behavior or content trends related to travel that might indicate an organic opportunity in this space?

Why it matters: Helps assess the natural fit and potential demand for travel features Expected answer: Significant travel-related content sharing and engagement among users Impact on approach: Would inform the initial feature set and target audience for a travel offering

• Given the competitive landscape in the travel industry, with established players like Booking.com and Airbnb, how does Facebook view its potential differentiators or unique value proposition in this space?

Why it matters: Guides our positioning strategy and feature prioritization Expected answer: Leveraging social connections and personalized recommendations as key differentiators Impact on approach: Would focus on integrating social elements and user data into travel planning and booking experiences

Based on your responses, I'll make the following strategic assumptions:

1. Facebook is interested in travel as a way to enhance user engagement and explore new revenue streams within its core platform.
2. There's significant travel-related activity among Facebook users, indicating organic demand.
3. Facebook's unique value proposition in travel would leverage its social graph and data insights.

With these assumptions in mind, let's move on to analyzing the market and competitive landscape.