Airbnb just rolled out a feature that feels like it was designed for all of us who’ve ever panic-booked a trip… and then realized life had other plans. It’s called “Reserve Now, Pay Later,” and it’s here to make spontaneous getaways (or last-minute mind changes) a lot less stressful — at least for U.S. users.
Here’s how it works: instead of coughing up your entire booking fee the second you click “Reserve,” you can lock in a property without paying upfront — but only if the host has a “flexible” or “moderate” cancellation policy. For context, flexible means you can cancel up to 24 hours before check-in without penalty. Moderate gives you up to five days before check-in to back out for free.
Of course, there’s a catch — you’ll still need to pay in full before that free cancellation window closes. Airbnb will nudge you with a friendly reminder before the payment is due, so you don’t accidentally ghost your host.
This isn’t Airbnb’s first experiment with payment flexibility. Back in 2018, they tried a “Pay part now, part later” option, letting travelers pay 20% or 50% upfront and the rest closer to their trip. Then in 2023, they partnered with Klarna so guests could split their bill into four payments over six weeks. Clearly, Airbnb knows that not everyone wants (or can afford) to drop a full vacation payment in one go.
And they’ve got data to back it up. In a survey with Focaldata, 55% of people said they prefer flexible payment options when booking. Even more telling? 42% admitted they’ve lost out on dream stays because they were busy sorting out payment logistics with friends or family.
Bottom line? “Reserve Now, Pay Later” isn’t just a payment tweak — it’s Airbnb doubling down on making travel feel more doable, even when your bank account isn’t quite ready for takeoff.
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