Airbnb Introduces "Reserve Now, Pay Later" Option in the U.S.
Airbnb is rolling out a new payment option in the United States designed to offer greater booking flexibility. The "Reserve Now, Pay Later" feature allows users to secure accommodations without immediate payment, providing a buffer for uncertain travel plans.
This option applies to listings with either "flexible" or "moderate" cancellation policies. Flexible policies permit cancellations up to 24 hours before check-in for a full refund, while moderate policies allow for fee-free cancellations up to five days prior to arrival.
Travelers utilizing "Reserve Now, Pay Later" must complete the full payment before the property's free cancellation period concludes. Airbnb will send timely reminders to ensure users don't miss the payment deadline.
This isn't Airbnb's first foray into alternative payment solutions. The company previously introduced a "Pay part now, part later" option in 2018, allowing users to split payments into two installments (either 20% or 50% upfront, with the remainder due later). In 2023, Airbnb partnered with Klarna, enabling users to divide their stay's cost into four interest-free installments spread over six weeks.
According to an Airbnb survey conducted with Focaldata, a significant portion of travelers desire more flexible payment options. The survey revealed that 55% of respondents preferred the ability to defer payment when booking accommodations. Furthermore, 42% reported missing out on desirable properties due to payment coordination challenges with fellow travelers.
