Airbnb Launches ‘Reserve Now, Pay Later’ Feature for US Travelers

Airbnb unveiled a new payment option for American travelers: Reserve Now, Pay Later. This feature allows users to secure accommodations without paying upfront, provided the listing has a flexible or moderate cancellation policy. Full payment is required before the property's cancellation window ends, ensuring hosts have adequate time to rebook the property if needed.

This new payment option is a response to the growing demand for flexible payment methods in the travel industry. According to a survey conducted by Airbnb and Focaldata, 60 percent of American travelers consider flexible payment options a key factor when booking a stay, and 42 percent have missed out on preferred accommodations due to difficulties coordinating payments with co-travelers.

The Reserve Now, Pay Later feature is part of Airbnb's broader strategy to expand its flexible payment offerings, complementing existing options like Pay Part Now, Part Later and the Pay Over Time plan with Klarna. Currently, this new feature is available to US users booking domestic stays with moderate or flexible cancellation policies.

This move aligns with a larger industry trend towards more adaptable payment models, similar to the Buy Now, Pay Later services popular in retail. Read our article Buy Now Pay Later for a travel business to learn how BNPL works and how travel suppliers and agencies implement it. Or watch the video:

Earlier, Airbnb relaunched experiences and added services. In our explainer, we discuss what went wrong with Airbnb Experiences before and what’s new this time.

Cover photo by Oberon Copeland @veryinformed on Unsplash