How Airbnb Measures Listing Lifetime Value

The article on Medium by Airbnb Engineering discusses their approach to calculating the lifetime value (LTV) of a listing on their platform. They emphasize the importance of LTV as a metric for evaluating the long-term potential of listings and guiding strategic decisions. Airbnb's method involves considering factors such as booking frequency, average booking value, and the duration a listing remains active. The piece also highlights the challenges in predicting LTV due to market variability and listing uniqueness, and explains how machine learning models and data-driven insights are employed to refine these predictions, ultimately aiding in optimizing host and guest experiences on the platform.