Airbnb expands its “Reserve Now, Pay Later” globally

Airbnb said connected Tuesday that it is launching its “Reserve Now, Pay Later” diagnostic — which lets users unafraid bookings without contiguous outgo — globally. This allows users to cancel their bookings if determination is simply a alteration of plans without losing wealth upfront.

The institution launched the diagnostic successful the U.S. past twelvemonth for home travel. Airbnb said that properties with a “flexible” oregon “moderate” cancellation argumentation are eligible for the upfront reservation. With this option, users get charged person to their check-in day alternatively than astatine the clip of booking. The diagnostic mirrors “buy now, wage later” outgo plans that person go fashionable successful e-commerce, making costly question much accessible by spreading retired costs. The institution noted that since the launch, the diagnostic saw 70% adoption for eligible bookings.

Image Credits: AirbnbImage Credits:Airbnb

During its net calls for Q4 2025, Airbnb said that the diagnostic helped turn nights booked successful the quarter.

“Reserve Now, Pay Later saw important adoption among eligible guests successful Q4. It’s besides led to longer booking pb times and a premix displacement towards larger full homes, particularly those with 4 oregon much bedrooms, contributing to the summation successful mean regular rate,” Ellie Mertz, CFO of Airbnb, said during the call.

Mertz noted that Airbnb’s wide cancellation complaint jumped from 16% to 17% for the quarter, and it was higher among customers who usage the upfront booking product. However, she said that this was “not hugely worldly comparative to the broader cancellations connected the platform.”

Last year, the institution surveyed U.S. travelers on with Focaldata, a London-based marketplace probe and polling company. Of those surveyed, 60% of participants said that a flexible outgo enactment is important portion booking a holiday, and 55% said that would usage a flexible outgo option.

The institution has been experimenting with pay-later products for years now. Back successful 2018, Airbnb launched a merchandise that allowed users to publication a spot by paying 20% oregon 50% of the full charges. upfront, with the remainder owed later. In 2023, the institution partnered with fintech steadfast Klarna to fto users wage for their stays in four installments implicit six weeks.