Airbnb introduces 'Pay Later' booking option
Airbnb has rolled out a new payment feature called 'Reserve Now, Pay Later' in the United States. This innovative option joins Airbnb's existing flexible payment suite and aims to reduce booking friction, potentially increasing host reservation volumes.
The feature allows guests to secure accommodation without immediate payment. Instead, payment for the reserved accommodation is due shortly before the end of the property's free cancellation period. This extended payment flexibility is designed to address growing demand for flexible booking options, particularly for group trips.
One in ten always selects flexible payment options where offered, and more than half of respondents (55%) use flexible payment methods when available. A survey of 2,159 US adults found 60% consider flexible payment options important when booking holidays.
The 'Reserve Now, Pay Later' option is applicable to eligible listings with moderate or flexible cancellation policies. Host cancellation policies remain unchanged under the new system. The timing of the payment ensures hosts retain the opportunity to secure alternative bookings if guests cancel.
In addition to 'Reserve Now, Pay Later', Airbnb also offers 'Pay Part Now, Part Later', which allows partial payment at checkout with the remainder due closer to check-in. 'Pay Over Time with Klarna' offers instalment payments as part of Airbnb's flexible payment options.
However, the specific details about the cancellation policies for the eligible listings were not mentioned in the article. The article did not specify if this feature will be extended to international listings. The name of the person who reported the introduction of the "Reserve Now, Pay Later" feature at Airbnb in the USA was not disclosed in the search results.
This new feature is structured to protect property owners' ability to rebook cancelled reservations, potentially reducing the friction associated with traditional payment methods and encouraging more bookings. By offering flexible payment options, Airbnb aims to make the booking process smoother and more accessible for travellers, while also benefiting hosts by increasing reservation volumes.
