Airbnb to Let U.S. Users Book Stays Without Upfront Payment

Airbnb has launched a new payment option in the United States called “Reserve Now, Pay Later,” giving travelers the ability to secure a booking without paying upfront. The feature is aimed at guests who want to lock in their accommodation early but still keep their plans flexible in case they need to cancel.

The option applies to listings that have either a flexible or moderate cancellation policy. Flexible policies allow guests to cancel up to 24 hours before check-in without penalty, while moderate policies allow cancellations up to five days before check-in. Guests must pay the full amount before the listing’s free cancellation period ends, and Airbnb will send reminders to ensure payment is made on time.

Airbnb’s History with Flexible Payments

This is not Airbnb’s first move into more adaptable payment models. In 2018, the company rolled out a “Pay part now, part later” option, which let guests split their payments, and in 2023, Airbnb partnered with Klarna to allow customers to spread costs across four installments over six weeks. The new approach builds on these earlier experiments by allowing bookings without any upfront payment.

The company cited research conducted with Focaldata showing that more than half of respondents wanted a more flexible payment option when booking a stay. A significant portion also said they had missed out on properties while trying to coordinate payment arrangements with other travelers. Airbnb hopes the new feature will address these challenges and encourage more bookings by removing immediate payment as a barrier.

Featured image credit: Oberon Copeland via Unsplash

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