(Getty Images)

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.

Tom Jones6/24/26

Prime Day is here again and Amazon’s subscription service has never been more popular

Well, it’s that time of year again: many have made their wish lists, people are scraping together the money they’ve saved to pick out a perfect gift, some are presumably leaving out refreshments for the weary delivery drivers and, more and more, drones.

It’s Amazon Prime Day — meaning that it’s the second day of the four-day promotional event that Amazon still calls Prime Day — of course, and it’s even come early this year, with the company bringing the period into late June from July, when it’s been traditionally held for the last five years.

The Prime Age

Alongside the eyes and endless clicks that the arbitrary stream of listicles on “The Best Prime Day Deals” that almost every media outlet pours into, Amazon will also be cheering the fact that there’s now more Prime users than ever before to devour the retailer and its sellers’ sometimes-contested “discounts.” Indeed, according to the latest annual estimates from Consumer Intelligence Research Partners (CIRP), there were just over 200 million American shoppers using Amazon’s massive subscription service at the end of 2025.

Max Knoblauch6/15/26

Electronic Arts launches a platform to put more ads in its games

Video game publishing giant EA launched a new platform on Monday designed to make the process of selling immersive ad space in its popular games easier.

The company says the platform, called EA Advertising, allows brands to “integrate directly into gameplay through dynamic, real-time placements, from stadium signage to custom in-game content.”

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

Electronic Arts Makes Push for Ad Dollars Tied to Sports

Millie Giles6/11/26

JM Smucker says it sold $1 billion worth of Uncrustables in FY2026

After years of booming sandwich sales, JM Smucker has finally earned a billion-dollar crust.

On Tuesday, the company reported results for fiscal year 2026, highlighting better-than-expected profits driven by higher prices for coffee and sweet baked goods. However, at another point on the earnings call, CEO Mark Smucker pointed to one particularly jammy figure: in line with previous forecasts, the company sold $1 billion worth of its (almost always) crustless sandwiches, Uncrustables, in the last year alone.

Max Knoblauch6/8/26

Paramount reportedly offers concessions to resolve multistate antitrust investigation

Paramount has reportedly offered up some concessions in an effort to prevent an antitrust lawsuit by California and about 10 other states, according to Bloomberg reporting on Monday.

Reuters first reported on the potential suit from a group of unnamed states last week, which could throw a wrench in Paramount’s plans to buy rival Warner Bros. Discovery in a Hollywood megamerger.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

Paramount Offers Concessions to Head Off State Antitrust Lawsuit

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

$98B ⛽

Max Knoblauch6/8/26

The IATA released its latest financial outlook for the airline industry over the weekend, forecasting a $98 billion jump in the sector’s collective fuel bill. The world’s largest trade group representing airlines expects the oil spike to halve profits by 49% from last year to $23 billion.

The group also expects profit margins to halve year over year, falling from 2025’s 4.2% to 2%. Still, revenue is expected to climb to $1.17 trillion from $1.07 trillion.

A surge in the cost of jet fuel has rocked US and global airlines this year, leading Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, JetBlue, and others to raise fares and ancillary charges like bag fees. Low-cost carriers, which operate on smaller margins, have been squeezed the hardest, resulting in Spirit’s shutdown.

“It’s a tough year for all airlines, especially those whose balance sheets had not yet recovered from COVID. And, of course, for those operating in the Gulf,” said IATA Director General Willie Walsh, who added that demand is holding up and about half of passengers expect to spend more on travel this year. “That bodes well for a strong northern summer peak season. The big unknown is how long travelers and shippers can tolerate the higher costs of connectivity.”