Airbnb has introduced a new feature called “Reserve Now, Pay Later,” allowing users in the U.S. to book a property without upfront payment. This option makes it easier for travelers to cancel bookings if their plans change, provided the property has a “flexible” or “moderate” cancellation policy.
Flexible policies permit cancellations up to 24 hours before check-in, while moderate policies allow fee-free cancellations until five days prior to arrival. Users must pay the full booking amount before the free cancellation period ends, and Airbnb will send reminders as the deadline approaches.
This isn’t Airbnb’s first venture into flexible payment options. In 2018, the company launched a “Pay part now, part later” feature, letting users pay 20% or 50% upfront and the rest later. In 2023, Airbnb partnered with Klarna to offer installment payments, splitting costs into four payments over six weeks.
According to a survey conducted with Focaldata, 55% of respondents preferred flexible payment options when booking stays. Additionally, 42% reported missing out on properties due to payment coordination issues with fellow travelers.