Airbnb has introduced a new feature called “Reserve Now, Pay Later,” allowing users in the U.S. to book a property without paying upfront. This feature makes it easier for travelers to cancel their bookings if their plans change, as long as the property has a “flexible” or “moderate” cancellation policy.
With a flexible policy, users can cancel their reservation up to 24 hours before check-in without a fee. A moderate policy allows cancellations without charges until five days before check-in. However, users must pay the full booking amount before the free cancellation period ends. Airbnb will send reminders to ensure payment is completed before the deadline.
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 either 20% or 50% upfront and the rest later. In 2023, Airbnb partnered with Klarna to offer installment payments, allowing users to split their stay costs into four payments over six weeks.
According to a survey conducted with Focaldata, 55% of respondents preferred flexible payment options when booking accommodations. Additionally, 42% said they had missed out on properties due to payment coordination issues with fellow travelers.