Airbnb announces ‘Reserve Now, Pay Later’ feature

US: Airbnb is introducing a Reserve Now, Pay Later policy to offer US guests an option to pay $0 upfront when booking eligible domestic stays. 

The ‘Reserve Now, Pay Later’ feature applies to US-based stays with flexible or moderate cancellation policies. Guests pay the full amount shortly before the end of the listing’s free cancellation period, giving them flexibility while ensuring hosts still have time to rebook if a reservation is cancelled.

Airbnb said the option aims to capture bookings from travellers who might otherwise delay confirming their stay, particularly when organising group trips and coordinating costs with others.

A survey of US travellers conducted by Airbnb and Focaldata found:

• 60 per cent said flexible payment options are important when booking a holiday.

• 55 per cent said they have used a flexible payment option, with 10 per cent saying they always do when available.

• 42 per cent said they had missed out on their preferred accommodation after delaying payment to coordinate with co-travellers.

The new feature complements Airbnb’s existing payment tools, including ‘Pay Part Now, Part Later’ where guests split the cost between booking and check-in and ‘Pay Over Time’ with Klarna.

The move follows a trial of the feature which took place from 26 June in regions across the US.

Airbnb said the move reflects growing demand for flexible booking arrangements, with the potential to increase conversion rates for hosts and secure more early-stage bookings.

Highlights:

• ‘Reserve Now, Pay Later’ allows eligible US guests to book with $0 upfront.

• Applies to listings with flexible or moderate cancellation policies.

• Guests pay in full before the end of the free cancellation period.

• Survey shows 42% of travellers have missed out on preferred stays due to payment coordination delays.

• Complements Airbnb’s existing flexible payment options.