Why has Navan's hotel booking feature seen a 15% drop in conversions over the past month?

Introduction

Navan's hotel booking feature experiencing a 15% drop in conversions over the past month is a critical issue that demands immediate attention. This analysis will systematically identify, validate, and address the root cause while considering both short-term fixes and long-term strategic implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonality at play. Has this 15% drop been compared to the same period last year?

Why it matters: Seasonal fluctuations could explain the conversion drop. Expected answer: Yes, it's been compared and the drop is still significant. Impact on approach: If seasonal, we'd focus on year-over-year trends rather than month-over-month.

• Considering user segments, I'm curious if this drop is uniform across all user types. Have we seen any particular user segment more affected than others?

Why it matters: Identifying affected segments could pinpoint specific issues. Expected answer: Business travelers seem more affected than leisure travelers. Impact on approach: We'd investigate factors specifically impacting business travelers.

• Thinking about recent changes, have there been any updates to the hotel booking feature or related systems in the past 1-2 months?

Why it matters: Recent changes could directly correlate with the conversion drop. Expected answer: A minor UI update was implemented 6 weeks ago. Impact on approach: We'd scrutinize the UI change and its potential impact on user behavior.

• Considering external factors, has there been any significant shift in hotel inventory or pricing from our partners?

Why it matters: Changes in available options or pricing could affect user decisions. Expected answer: No major changes reported from hotel partners. Impact on approach: We'd focus more on internal factors if external conditions remain stable.