Airbnb Now Offers No Upfront Payment Booking

Airbnb Introduces "Reserve Now, Pay Later" Option

Airbnb has recently unveiled a new functionality, termed “Reserve Now, Pay Later,” for users located in the United States. This feature enables individuals to secure a property reservation without immediate payment.

This new system potentially reduces complications associated with booking cancellations should travel plans undergo alterations.

Cancellation Policy Applicability

The “Reserve Now, Pay Later” feature is applicable to listings that operate under either a “flexible” or “moderate” cancellation policy.

Flexible policies permit cancellations up to 24 hours prior to the scheduled check-in. Moderate policies allow for no-fee cancellations up to five days before check-in.

Full payment for the reservation will be required before the expiration of the listing’s free cancellation window. Airbnb will proactively issue payment reminders to users as this date approaches.

Previous Payment Options

Airbnb’s exploration of flexible payment solutions isn't entirely new. A “Pay part now, part later” option was introduced in 2018.

This earlier iteration allowed users to initially pay either 20% or 50% of the total cost, with the remaining balance due at a later date.

Further expanding payment flexibility, Airbnb partnered with Klarna in 2023 to facilitate payments in four installments spread over a six-week period.

User Demand for Flexible Payments

According to a survey conducted by Airbnb in collaboration with Focaldata, a significant majority – 55% of respondents – expressed a preference for flexible payment options when booking accommodations.

Furthermore, 42% of those surveyed indicated that they had previously missed out on desired properties due to difficulties coordinating payment arrangements with fellow travelers.

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