This Week’s News & Insights

Good morning,

Yesterday, Airbnb dropped its 2025 Summer Release — and there are 3 major updates every host should know. I’ll break them down for you below.

But first… what do you think of the new app design?

Lets dive in. 

NEWS

This Week’s Headline Roundup

• Airbnb’s Summer 2025 Release Details (full breakdown below) (Airbnb)

• Memorial Day travel expected to break 20-year record with 44 million Americans on the move (AAA)

• HomeToGo's new AI filter lets travelers search for the exact amenities they want (The Host Report)

• NYC's STR Law backfires: rents and hotel rates hit record highs (Airbnb)

• Airbnb's Q1 earnings show global growth outpacing U.S., with a push for lower host prices (The Host Report)

• Expedia's Q1 earnings reveal softening U.S. travel demand and a shift in Vrbo's growth strategy (The Host Report)

• Hospitable launches a built-in dynamic pricing tool with no extra fees for hosts (The Host Report)

• Expedia introduces AI-powered Trip Matching, turning Instagram reels into bookable itineraries (Expedia)

AIRBNB’S 2025 SUMMER RELEASE

3 Key Changes Airbnb Hosts Need To Know

1. All-New Airbnb App Design

   • Completely rebuilt to integrate 3 main categories: Homes, Services, and Experiences

   

   • New app features include:

     • Explore tab: Homepage for discovering Homes, Experiences, and Services

     • Trips tab: Advanced travel itinerary with scheduling

     • Enhanced messaging with photo/video sharing

     • Redesigned user profiles

   • Host-specific improvements including simplified listing creation, reservation management, and calendar integration
     

2. Airbnb Services

   • 10 categories of professional services available in over 100 cities, including:

     • Chefs, Photography, Massage, Spa treatments, Personal training, Hair, Makeup, Nails, Prepared meals, Catering

   • How it works: The guest picks a service and the personal trainer, chef, etc. will come to your home at the scheduled date and time. 

   • Services can be booked in your own city even without staying at an Airbnb.
     

3. Airbnb Experiences (Relaunched)

   • A key difference from the failed experiences launch in 2016 is that Airbnb is integrating experiences directly into the booking process, and can use AI along with other data to suggest the best experiences for each guest. 

   • Categories include: landmarks/museums, food tours/cooking classes, outdoor activities, art workshops, and fitness/wellness experiences. Available in 650 cities worldwide.

   • An interesting component: Airbnb will add social features later in 2025 so that guests can connect with other participants before, during and after the experience.

Home hosts can suggest the best experiences and services to their guests, but it’s my understanding that hosts will not get compensated for any additional revenue booked during the guest’s stay.

It feels like a glaring missed opportunity to not give existing home hosts and property managers a financial incentive to promote the new experiences and services to their guests. 

MARKET DATA

5 Common Themes From the Airbnb, Vrbo (Expedia), and Booking.com’s Q1 2025 Earnings Calls

1. U.S. Market Was Weak, While Global Demand Was Strong

All three companies reported soft demand in the United States for Q1—particularly in longer booking windows and inbound international travel:

• Airbnb: North America was the slowest-growing region, with low single-digit growth. They saw Canadians going to Mexico instead of the U.S., and Europeans staying within Europe or heading to Asia.

• Booking: U.S. room nights only grew low single digits, while the length of stay decreased .

• Expedia: Described the U.S. market as "soft" due to weaker consumer sentiment. Inbound U.S. travel was down 7%, with Canadian inbound traffic down 30%​.

Global Demand:

• Booking: High-single-digit growth in Europe and Asia; low double-digit growth in Rest of World.

• Airbnb: Latin America led with low-20% growth, followed by mid-teens in Asia Pacific. Europe grew mid-single digits​.

• Expedia: Strong international growth in APAC (30%) and Europe (mid-single digits). Their B2B segment, with higher international exposure, outperformed overall​.

2. Travelers Are Value-Conscious and Booking Later

• Shorter booking windows are the norm now across platforms, especially in the U.S.

• High-income travelers continue to book (especially on Airbnb), but most consumers are showing price sensitivity.

• Booking and Expedia noted a shift toward non-refundable rate plans and more discounting by properties.

• No significant “trading down” in ADRs yet, but guests are hesitating longer before booking.

3. AI Is Going Live

Each company is rolling out AI in a major way:

• Booking: AI-powered onboarding, guest messaging, and pricing tools.

• Airbnb: 50% of customer service inquiries are being handled by AI agents.

• Expedia: AI-driven merchandising, FAQ bots, and social-media integrations for demand generation.

4. Bundled Travel Tools Are Expanding

• Airbnb: Just unveiled an entire new user interface on their mobile app, integrating experiences and services within the app. 

• Booking: Highlighted its “Connected Trip” model—linking stays, flights, and experiences. Massive growth in multi-vertical bookings.

• Expedia: Focused on packaging as a way to increase length of stay and reduce cancellations; also integrating with Instagram reels and AI-based itinerary builders.

5. Inventory Quality and Platform Trust Are Critical

• Airbnb: Removed 450,000 listings to improve platform quality.

• Booking: Emphasized raising the bar for alt accommodations to match hotel standards.

• Expedia: Reworked Vrbo’s supply quality controls and booking filters.