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Expedia·Product Manager·Onsite - Product Sense / Strategy·Senior

Senior
Apr 2026

Summary

PM interview at Expedia with a classic market sizing question about global hotel bookings. Pretty standard estimation exercise but the scope of it tripped me up a bit.

Questions Asked (1)

Q1

How many hotel bookings does Expedia handle globally in a year? Walk through your estimate.

Product Analytics & MetricsProduct Strategy
Author's notes

I started from world population and tried to segment by travelers vs non-travelers, then layered in online booking penetration and Expedia's market share.

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AI HintsAI Generated

Suggested Approach

Use a top-down approach: start with global travel market size, estimate online penetration, then Expedia's market share to derive annual bookings. Alternatively, build from Expedia's known metrics like revenue and average booking value, but clearly state assumptions and validate with a second method.

Pro tip: Show product sense by segmenting bookings by product line (hotel, flight, car) and highlighting that hotels are Expedia's core, then tie the estimate to a metric like room nights, which is how Expedia actually reports performance.

1. Clarify scope and define the metric

Confirm whether 'hotel bookings' means room nights, reservations, or gross bookings, and whether it includes all Expedia Group brands (Expedia, Hotels.com, Vrbo, etc.). State that you'll estimate global annual hotel room nights.

2. Estimate global travel market

Start with world population (~7.8B), estimate the percentage that travels and stays in hotels annually, and average hotel stays per traveler to get total global hotel room nights.

3. Estimate online penetration and Expedia's share

Apply an online booking penetration rate (e.g., 50-60%) to the global hotel room nights, then estimate Expedia's share of the online travel agency (OTA) market (e.g., 15-20%) to derive Expedia's bookings.

4. Sanity-check with alternative method

Validate the estimate using Expedia's known revenue (~$10B) and average booking value (~$300 per room night) to see if the numbers align, adjusting assumptions if needed.

5. Summarize and state final estimate

Combine the assumptions into a final number (e.g., 300-400 million room nights annually) and clearly state the range and key uncertainties.

Key Points to Mention

  • Global travel market size and growth trends
  • Online penetration rates for travel bookings
  • Expedia's market share among OTAs and overall online travel
  • Average booking value and revenue per room night
  • Expedia's reported metrics like room nights and gross bookings
  • Segmentation by product line (hotel, flight, car) and geography

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.