Dynamic pricing and take rates
Q: Richard Clarke from Bernstein asked about the early performance of the dynamic pricing product and why the take rate is expected to increase in the fourth quarter.
A: Brian Chesky stated that dynamic pricing is a massive lever and early adoption is strong, aiming to balance host earnings with guest affordability. Ellie Mertz explained that the fourth quarter take rate will rise because the third quarter saw an outsized impact from Reserve Now Pay Later, which delays revenue recognition, while the fourth quarter will normalize.
Hotel strategy and AI agents
Q: Lloyd Walmsley from Mizuho asked how hotel growth compares to the core business and whether the AI agent can operate outside of the Airbnb platform.
A: Brian Chesky noted that hotels are growing faster than the core business and represent a multi-billion dollar opportunity, adding that the hotel industry now views Airbnb as an ally. He confirmed the AI agent will eventually integrate with other travel providers via APIs to handle full trips, though he declined to provide a specific timeline.
AI agent capabilities and Reserve Now Pay Later
Q: Ken Gawrelski from Wells Fargo asked about the trade-offs between vertical and general-purpose AI agents and requested an update on Reserve Now Pay Later cancellation rates.
A: Brian Chesky argued that specialized agents will win in travel because they offer custom interfaces, unlike general chatbots, and he plans to integrate various travel verticals natively. Ellie Mertz reported that Reserve Now Pay Later cancellation rates are 19%, up from 16% a year ago, which she considers healthy.
Inventory and insurance
Q: Justin Post from Bank of America asked what percentage of inventory is proprietary and how this impacts agent negotiations, as well as the penetration of insurance products.
A: Brian Chesky stated that over 60% of inventory is unique to Airbnb, though he focuses more on the absolute volume of unique items than the percentage. Ellie Mertz added that insurance penetration is in the single digits but growing, and these products carry strong margins.
Social features, loyalty, and discovery
Q: Benjamin Black from Deutsche Bank asked how new social and discovery features change the guest experience and if this leads to loyalty programs or sponsored listings.
A: Brian Chesky explained that social features aim to bring back the social graph to travel, increasing trust and making the platform stickier. He confirmed the company is looking at a loyalty program, noting that adding more verticals makes such a program more compelling, while sponsored listings will be developed in the context of the AI agent.
Growth and profitability balance
Q: Jed Kelly from Oppenheimer asked how management balances double-digit growth with maintaining margins above 35%.
A: Ellie Mertz emphasized that the business is highly profitable with strong cash flow, allowing the company to reinvest upside into growth while maintaining a strong profitability envelope.
Hotel customer behavior and AI agent competition
Q: Matthew Cost from Morgan Stanley asked if hotel users are new to the platform and how the company views competition from general-purpose AI agents.
A: Ellie Mertz noted that hotel demand is strong among both new and existing users. Brian Chesky stated that while they monitor general agents, they do not see significant traffic or bookings from them yet, and he remains confident that a specialized travel agent will provide a superior experience.
