U.S. Travelers Now Can Reserve Airbnb Without Upfront Payments

Airbnb is introducing a “Reserve Now, Pay Later” feature aimed at providing travelers with greater flexibility in their booking plans.

This move comes as a response to the growing demand for flexible payment options in the travel industry, and it addresses concerns that some travelers had missed out on properties due to difficulty in arranging payments elsewhere. The data indicates that a significant number of U.S. consumers have been unable to secure stays because they were not able to finalize payment arrangements.

The feature is applicable to properties with either flexible or moderate cancellation policies, allowing for cancellations up to 24 hours before check-in (flexible) or five days prior (moderate). However, users must ensure that their payments are completed before the free cancellation period ends; otherwise, they might face penalties.

Travelers’ Undeterred Desire

In spite of economic challenges such as inflation and higher interest rates, travel remains a key priority for U.S. consumers. According to Enterprise Mobility data, two-thirds of U.S. consumers intend to take at least one overnight leisure trip this summer, predominantly within the country.

BNPL Gains Popularity in Travel

The travel sector has seen an increase in the use of buy now, pay later (BNPL) options due to the complex financial situation faced by consumers. Airbnb added installment loans through Klarna two years ago but faced concerns from users regarding payment security.

Despite these efforts, many travelers still prefer booking with trusted agencies known for secure payment processes. The implementation of a reserve-now, pay-later system might be beneficial for Airbnb; however, there are challenges related to increased risks due to partial payments and the potential for double bookings or spam reservations.