Airbnb is offering travelers in the United States a “Reserve Now, Pay Later” option, aiming to offer guests more flexibility and hosts more stays.
The short-term rental giant tested the payment tool in the U.S. earlier this summer. When the trial period began, some vacation rental community members voiced concern about an increased risk of “empty nights” and “reliable booking confirmations.” However, others said the tool may allow Airbnb property managers to compete with online travel agencies.
The Reserve Now, Pay Later option allows travelers to book “eligible domestic stays,” i.e. those with moderate or flexible cancellation policies, for $0 up front. Guests will still be required to pay before the end of the listing’s free cancellation period, and hosts will still be able to select their own cancellation policy.
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As it doesn't affect a listing's existing policies, the company doesn't seem concerned about a higher rate of cancellation. Even without the Reserve Now, Pay Later option, listings with flexible or moderate cancellation policies allow guests to cancel 24 hours or five days before check-in to receive a full refund, an Airbnb spokesperson said.
“Payment from guests is due before the free cancellation period ends. If guests are unable to pay, Airbnb will cancel the reservation, ensuring hosts have the opportunity to secure another booking,” the spokesperson said.
Hosts will also still receive payouts in accordance with their regular cancellation policy timeline, regardless of the guest’s chosen flexible payment method.
The spokesperson said hosts have been generally receptive to products that can boost demand and said hosts that are already using flexible or moderate cancellation policies are used to operating in a way that gives guests more leeway.
“We hope they continue to see the value in doing so with Reserve Now, Pay Later,” the Airbnb spokesperson said. “We're optimistic that hosts will recognize how this added flexibility benefits guests—and ultimately, how it can lead to increased bookings over time.”
The company was unable to share any data that might illustrate user response to the tool during its testing period, but it is exploring rolling the tool out to additional locations.
Airbnb’s “Reserve Now, Pay Later” will join its “Pay Part Now, Part Later” and “Pay Over Time With Klarna” options.
The official launch of Reserve Now, Pay Later comes on the heels of Airbnb’s second quarter 2025 earnings call, during which the company reported high guest satisfaction with other new features such as Services, which launched in May, despite post-launch criticism.