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

Airbnb has launched a new feature called “Reserve Now, Pay Later” that enables U.S. users to book accommodations without making an upfront payment. This addition may facilitate easier cancellations if travel plans change.

This option is applicable to properties offering either a “flexible” or “moderate” cancellation policy. Flexible policies allow users to cancel bookings up to 24 hours before check-in, while moderate policies permit cancellation without a fee until five days prior to check-in.

Guests are required to pay the total booking amount before the end of the listing’s free cancellation period. Airbnb will notify users to complete their payment before this deadline.

Airbnb is experienced in the buy now, pay later arena. In 2018, it introduced a “Pay part now, part later” option, allowing users to pay an upfront portion (20% or 50%) and settle the remainder later. In 2023, it collaborated with Klarna to enable users to split their payments for stays into four installments over six weeks.

A survey conducted by Focaldata revealed that 55% of participants preferred flexible payment options when booking accommodations, while 42% reported missing out on properties due to payment logistics with fellow travelers.

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