Airbnb trials 'Reserve Now, Pay Later'

New feature lets eligible guests in the U.S. and Canada book without upfront payment, aiming to ease affordability concerns

Airbnb is testing a new feature called Reserve Now, Pay Later, allowing some U.S. and Canadian guests to book stays without any upfront payment. The move aims to improve affordability and flexibility for travelers. While not as lenient as hotel models where payment occurs upon arrival, it marks a shift toward more hotel-like options on the platform. Airbnb has yet to formally announce the feature but is quietly experimenting with it as part of broader efforts to enhance guest payment options.

Key takeaways

• What it is: Reserve Now, Pay Later lets eligible guests book a stay with zero payment at the time of booking. Payment is automatically collected later using the original payment method.
• Eligibility: Available on select bookings in the U.S. and Canada. Guests will see the option during checkout if the booking qualifies.
• Payment timing: Airbnb informs users at checkout when the total amount is due. For example, payment may be required before a free cancellation deadline.
• Cancellation & payment failure: If payment isn’t completed by the due date, Airbnb cancels the booking. Hosts still receive payouts based on their cancellation policies.
• No impact on Hosts: Hosts operate as usual; the guest payment process is handled entirely by Airbnb.
• Not installment financing: Unlike “buy now, pay later” services that break payments into financed installments, this feature simply defers the full payment to a later date.
• Reason for test: Airbnb is responding to guest demand for more affordable and flexible booking options.
• No official launch yet: Airbnb hasn’t publicly announced the feature and may do so later in the year.

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