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Beyond the BNB: Airbnb redefined where people stay. Now it wants to shape what they do.

CFO Ellie Mertz spoke to Sherwood News about the company’s newest amenities, AI strategy, and staying sticky as travel habits shift.

Nia Warfield

5/19/25 4:47PM

Airbnb has made its biggest push yet beyond home rentals. The company recently rolled out a sweeping platform revamp, adding services like private chefs and curated experiences with A-list talent. As travel cools, vacation habits are getting a reset. More Americans are staying closer to home, trading long-haul getaways for domestic trips and cheaper “destination dupes.”

According to Bank of America’s latest travel survey, 70% of Americans are planning to travel within the US this year, up 4% from 2024. With travelers seeking more value and variety, Airbnb CFO Ellie Mertz spoke to Sherwood News about how scaling services (not just stays) will power the company’s next phase of growth.

This interview has been edited for length and clarity.

Sherwood News: This was a pretty massive revamp. Why now?

Ellie Mertz: If you back up several years, Brian [Chesky] always had a vision of Airbnb moving beyond just accommodations. We’d actually started to do that prepandemic, but once Covid hit, we needed to refocus on the core by rebuilding the tech stack, shoring up our business model, and making sure we had strong economics. Now, we’re expanding from a place of strength. This revamp marks our first step toward a broader vision: a world where you can Airbnb more than just an Airbnb.

Sherwood: In the company’s most recent earnings call, you mentioned that only 1 in 9 travelers will pick an Airbnb over a hotel. Are the new offerings meant to close that gap, or more about differentiation?

Mertz: It’s both. We want to make our stays feel more special with add-ons like chefs or wellness providers, but we also know hotels still win on services. Guests have told us that if we offered things like room service or a spa, it would make Airbnb even more appealing. For a while, we’ve asked users, “If we offered X, would you book it?” That input directly informed which categories made the cut.

Sherwood: The app was described as something that now “travels with you.” What does that mean?

Mertz: Travel planning happens in stages. You book your flights and your Airbnb, then weeks might go by before you plan anything else. People are busy and there’s often one person doing all the coordination. The new app accounts for that. If your trip is in a week, it starts showing you the kinds of services you might want, like a chef, yoga class, or a special experience. It’s meant to show the right offering at the right time, based on where you are in your planning journey.

Sherwood: Airbnb’s easy interface has always been a strong catalyst for engaging users. How do you think about design as you scale more services?

Mertz: Interface is critical, especially in travel. You’re not buying multiple items in one go like on Amazon. You book your stay, and then you’re in a different mindset when you’re planning the rest. This redesign is all about understanding that behavior. It’s meant to match how travelers actually think and plan and then surface relevant, personalized options when they’re most ready to engage.

Sherwood: Some of these new A-list experiences, like with Sabrina Carpenter or Patrick Mahomes, feel like marketing gold. How do you scale that kind of premium offering?

Mertz: Those celebrity-led experiences definitely help create buzz, but they’re part of a much larger launch. We rolled out over 1,000 Airbnb Originals, many led by local creators and experts.

These offerings serve two purposes: they’re unforgettable for the people who book them, and they’re a great discovery tool. People see a name they recognize and click in, then discover the depth of our offerings. They really help position Airbnb as the destination for unique travel experiences.

Sherwood: Airbnb said it’s investing $200 million to $250 million in new ventures this year. How are you thinking about that trade-off of near-term margin pressure vs. upside later?

Mertz: The way we set our full-year 2025 outlook was to clearly identify that nominal investment going toward new businesses and also to set a floor on EBITDA margins for the entire company. The intent was to signal to investors that every year, we’re focused on improving the core business, while also making deliberate investments in growth.

That transparency allows people to piece apart the two pieces: the core business continues to have extremely strong profitability, and the overall company continues to generate strong free cash flow.

Sherwood: Let’s talk about AI. How big a role is it playing now, and how do you see that evolving?

Mertz: AI is already integrated into a lot of what we do: reservation screenings, AI-powered photo tours, and more. But the most visible piece so far is our new AI chatbot for customer service, which is now live for English-speaking US guests. It’s already delivering great results.

We started with customer service because it builds trust. If you can’t solve simple issues reliably, you’re not ready to offer concierge-level AI. But that’s where we’re headed — toward AI-powered trip planning and recommendations that truly enhance the travel experience.

Sherwood: Airbnb has always had this personal touch, even as it’s grown. How do you preserve that aspect as the platform grows?

Mertz: It’s something we think about deeply. One example is the user profile, something Brian emphasized during launch. That profile helps guide personalization while keeping the human element front and center.

We’re also adding social features to experiences. You’ll be able to see who else is attending, connect during the activity, and even share photos after. It’s not just about booking a thing, it’s about forming connections. That sense of belonging is still at the heart of Airbnb, even as we expand.

Max Knoblauch10h

The Trump administration is reportedly planning a 50% made-in-America requirement for USMCA tariff relief

Qualifying for USMCA-related lower tariffs may soon require more US-made vehicle components, according to reporting by The Wall Street Journal.

The Trump administration is reportedly planning to introduce a 50% US content requirement for vehicles covered by the trade pact to receive lower tariffs. The content would be measured by cost, according to the WSJ.

There currently isn’t any US-specific requirement for those lower tariff rates, but in order to receive preferential tariffs, vehicles are must contain at least 75% regional content (components made in North America). Per Reuters reporting, the Trump admin is seeking to raise the regional requirement to 82%.

These reported plans are subject to change as the US negotiates USMCA terms with Mexico over the next few months.

Overall, Tesla will likely have the easiest time qualifying for any stricter requirements. The automaker’s vehicles contained the highest amount of US/Canadian content in 2025, according to American University research. Ford, GM, and Stellantis all scored lower.

Notably: the underlying government data that many domestic content measurements rely on intentionally combines US and Canadian components, so it’s difficult to know exactly how much of any given vehicle is specifically US-made.

Exclusive | Trump Administration Wants Autos Under USMCA to Be at Least 50% Made in America

These reported plans are subject to change as the US negotiates USMCA terms with Mexico over the next few months.

Tom Jones16h

The $640,000 Luce makes the average Ferrari look like a bargain

Put aside the shape; put aside the smoothing out of Ferrari’s iconic sharp edges; put aside, even, the calls from former Chairman and President Luca Cordero di Montezemolo to “take the Prancing Horse off.” On the grounds of price alone, Luce detractors might have a point.

By now, many of us will have read the criticisms of Ferrari’s first fully electric vehicle, as the Luce — which was unveiled to the world earlier this week and promptly saw the company’s shares crash out in New York and Milan — gets subtly shaded by competitors online and not-so-subtly shaded by basically everyone else.

What makes all of this worse for Ferrari is that, even by the luxury car maker’s notoriously high standards, they’ve slapped a pretty hefty price tag on the Luce, and the company’s CEO, Benedetto Vigna, has already been forced to defend the €550,000 ($640,000) price point, saying yesterday that it’s “fair to pay for innovation,” per Reuters.

While Ferrari’s cars have been getting more expensive of late, as recently as 2022, Ferrari’s average revenue per car sold was around $340,000. At nearly twice that price, this new electric model is obviously proving a little much (visually, conceptually, and financially) for many loyal and long-standing fans of the Prancing Horse to stomach.