For Expedia's vacation rental listings, should we focus on increasing the quantity of properties available or improving the quality and vetting process for each listing?

Introduction

For Expedia's vacation rental listings, we're faced with a critical trade-off between increasing the quantity of properties available and improving the quality and vetting process for each listing. This decision will significantly impact our user experience, market position, and revenue potential. I'll analyze this trade-off by examining our product ecosystem, key metrics, and potential experiments to inform a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on recent market trends, I'm thinking our competitive landscape might be shifting. Could you provide an overview of our current market position and main competitors in the vacation rental space?

Why it matters: Helps contextualize our strategy against market dynamics Expected answer: We're a top 3 player, facing increased competition from Airbnb and Vrbo Impact on approach: Would influence whether we prioritize quantity or quality to differentiate

• Considering our revenue model, I assume we operate on a commission basis. What's our current take rate, and how does it compare to the industry average?

Why it matters: Affects the financial impact of quantity vs. quality decisions Expected answer: Our take rate is around 15%, slightly below the industry average of 18% Impact on approach: Lower take rate might push us towards quantity to increase overall bookings

• Looking at user behavior, I'm curious about our current conversion rates. What percentage of our users book after viewing a listing, and how does this vary between high-quality and average listings?

Why it matters: Indicates the potential impact of focusing on listing quality Expected answer: Overall conversion rate is 3%, with high-quality listings converting at 5% Impact on approach: Significant difference would support prioritizing quality improvements

• Regarding our technical capabilities, what's our current capacity for vetting and onboarding new properties? Are there any scalability concerns with our current processes?

Why it matters: Determines feasibility of rapidly increasing quantity or quality Expected answer: Current system can handle 1000 new listings per day, with manual review bottlenecks Impact on approach: Limited capacity might necessitate a phased approach or tech investment

• Considering resource allocation, what's our current split between teams working on property acquisition versus those focused on quality assurance and vetting?

Why it matters: Indicates potential for reallocation or need for additional resources Expected answer: 70% on acquisition, 30% on quality assurance Impact on approach: Imbalance might suggest room for shifting focus to quality without sacrificing growth