Airbnb Now Offers Book Now, Pay Later for US Travelers
▼ Summary
– Airbnb introduced “Reserve Now, Pay Later” in the U.S., allowing users to book properties without upfront payment and cancel more easily if plans change.
– The feature applies to properties with “flexible” or “moderate” cancellation policies, offering free cancellations up to 24 hours or five days before check-in, respectively.
– Users must pay the full booking amount before the free cancellation period ends, with Airbnb sending payment reminders beforehand.
– Airbnb previously offered payment flexibility, including a 2018 partial-payment option and a 2023 partnership with Klarna for installment payments.
– A survey by Airbnb and Focaldata found 55% of respondents prefer flexible payment options, and 42% missed bookings due to payment coordination issues.
Airbnb has introduced a game-changing payment option for U.S. travelers, allowing them to secure accommodations without immediate upfront costs. The new “Reserve Now, Pay Later” feature provides flexibility by letting guests book properties while deferring payment until closer to their stay. This move caters to travelers who value financial flexibility or need time to coordinate plans with others.
The option applies exclusively to listings with flexible or moderate cancellation policies. Under flexible terms, guests can cancel without penalty up to 24 hours before check-in, while moderate policies require cancellations at least five days prior to avoid fees. Payment in full must be completed before the free cancellation window closes, with Airbnb sending automated reminders to ensure users don’t miss the deadline.
This isn’t the company’s first venture into staggered payment solutions. Back in 2018, Airbnb tested a split-payment model, allowing guests to pay a portion upfront, either 20% or 50%, with the balance due later. More recently, a partnership with Klarna enabled installment payments spread over six weeks.
Consumer demand appears to back the trend. According to an Airbnb-commissioned survey conducted by Focaldata, 55% of respondents favored flexible payment methods when booking stays. Additionally, 42% admitted to losing out on ideal rentals due to payment coordination challenges with travel companions. The latest feature aims to eliminate those friction points while giving travelers greater control over their budgets.
By rolling out “Reserve Now, Pay Later,” Airbnb strengthens its position in the competitive short-term rental market, aligning with modern consumer preferences for financial adaptability. The feature could prove especially valuable for group travelers or those navigating uncertain schedules, further streamlining the booking experience.
(Source: TechCrunch)