Airbnb Expands “Reserve Now, Pay Later” Worldwide to Help Travelers Book Early for Peak Demand

Airbnb said it is rolling out “Reserve Now, Pay Later” worldwide. The feature lets guests confirm certain stays without paying at checkout. Airbnb first launched it in the US and says the early response was strong: in the fourth quarter of 2025, more than 70 percent of eligible bookings used the option. The company is now extending it to travelers globally for listings that meet specific rules.

How the feature works and what is eligible

Reserve Now, Pay Later is not a free “hold.” Airbnb explains that guests can secure an eligible reservation now, but Airbnb will charge the stay before the free-cancellation window ends. The option only applies to listings with Flexible or Moderate cancellation policies, because those policies have a clear cutoff date for free cancellation. Airbnb also notes that the feature is not available for some currencies, including Brazilian real, Indian rupees, and Turkish lira.

Why Airbnb is pushing it and what it changes in travel

Airbnb is trying to remove a common reason people abandon a booking: they find the right place, but hesitate because budgets are tight or the group has not coordinated payment yet. Airbnb says travelers want more payment flexibility, and it points to research showing people sometimes miss out on a preferred home because it takes time to organize money with co-travelers. For the wider travel industry, this is mainly a conversion move: it can encourage earlier bookings, especially for expensive trips and high-demand dates when inventory disappears quickly.

How this fits with BNPL and upcoming rules

Airbnb already offers other payment options in some markets, such as installment-style options through Klarna (where available), which differ from “pay later with nothing due today.” At the same time, the regulatory environment around buy now, pay later (BNPL) is tightening.

In the UK, the Financial Conduct Authority says it will begin regulating deferred payment credit, commonly known as BNPL, from July 15, 2026. That matters for travel because payment products often require clearer disclosures and consumer protections as they scale.

The World Cup demand play

Airbnb announced a major push to add supply ahead of the 2026 FIFA World Cup. Airbnb said it will offer $750 to certain new “entire home” hosts in World Cup host cities who complete their first stay by July 31, 2026. Airbnb’s message is that demand is building early, and it wants more hosts ready for the surge. In other words, “reserve now, pay later” helps guests lock in scarce homes, while the host incentive helps Airbnb make sure there are more homes to book.

Photo by Taylor Heery on Unsplash