Airbnb has introduced a new payment option for U.S. users called “Reserve Now, Pay Later.” This feature lets guests book a property without paying anything upfront, giving them more time to confirm their plans before committing financially.
It applies only to listings with a “Flexible” or “Moderate” cancellation policy. A flexible policy allows cancellations up to 24 hours before check-in without a fee, while a moderate policy allows cancellations up to five days before check-in without a fee.To keep the booking, guests must pay the full amount before the free cancellation period ends.
Airbnb will send reminders to ensure payment is made on time. The goal is to help travelers secure a property while finalizing details with friends or family, and to reduce the financial risk of booking in advance when plans may still change.
This isn’t Airbnb’s first attempt at offering flexible payments. In 2018, it launched “Pay part now, part later,” which let guests pay 20% or 50% upfront and the rest later. In 2023, it partnered with Klarna to allow users to split payments into four installments over six weeks.
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The move is backed by Airbnb’s survey with research firm Focaldata, which found that 55% of people prefer flexible payment options, and 42% have missed out on properties while trying to coordinate payment with other travelers.In essence, “Reserve Now, Pay Later” aims to give U.S. travelers more flexibility and less stress when booking a stay, without the pressure of paying immediately.
