How Airbnb measures listing lifetime value
a year ago
- #Airbnb
- #Lifetime Value
- #Machine Learning
- Airbnb measures listing lifetime value (LTV) to identify valuable listings for guests and improve host recommendations.
- The LTV framework includes baseline LTV, incremental LTV, and marketing-induced incremental LTV.
- Baseline LTV estimates total bookings a listing will make in the next 365 days using machine learning.
- Incremental LTV accounts for bookings that would not have occurred without the listing's participation.
- Marketing-induced incremental LTV measures the additional value created by internal initiatives like marketing campaigns.
- Challenges include accurately measuring baseline LTV, accounting for incrementality, and handling uncertainty, especially during the COVID-19 pandemic.
- Airbnb uses LTV estimates to segment listings, identify high-potential locations, and evaluate marketing initiatives.
- The framework can extend to other applications like Airbnb Experiences listings.
- Airbnb continuously improves LTV models and shares insights on their blog.