Airbnb Introduces Option for US Users to Book Stays Without Upfront Payment

Airbnb has launched an innovative feature known as “Reserve Now, Pay Later,” which allows users in the U.S. to secure a property without an upfront payment. This flexibility may facilitate cancellations for users if their travel plans change.

This option is applicable to listings that have a “flexible” or “moderate” cancellation policy. With flexible policies, users can cancel up to 24 hours prior to check-in, while moderate policies enable them to cancel without any fees until five days before their scheduled arrival.

Users must complete the full payment before the end of the listing’s free cancellation period, and Airbnb will send timely reminders to ensure users adhere to this deadline.

Airbnb is well-versed in the buy-now, pay-later landscape. In 2018, it introduced the “Pay part now, part later” feature, allowing users to make 20% or 50% upfront payments with the balance due later. More recently, in 2023, the company collaborated with Klarna to offer users the option to divide their payments into four installments over six weeks.

A survey conducted with Focaldata revealed that 55% of participants preferred flexible payment options when booking accommodations, with 42% indicating they missed opportunities on properties due to coordination of payment logistics with fellow travelers.