.png)
9 hours ago
4
Airbnb has launched its “Reserve Now, Pay Later” feature worldwide, allowing users to book stays without paying upfront.
Guests can cancel reservations under eligible properties without losing money at the time of booking.
The option was first tested in the U.S. last year for domestic travel. Only properties with a “flexible” or “moderate” cancellation policy qualify.
With this feature, users are charged closer to check-in rather than when they make the booking.
Airbnb said it mirrors the “buy now, pay later” trend popular in e-commerce, making travel more accessible by spreading costs over time. Since its U.S. launch, 70% of eligible bookings used the feature.
Ellie Mertz, Airbnb’s CFO, discussed the product during the company’s Q4 2025 earnings call.
“Reserve Now, Pay Later saw significant adoption among eligible guests in Q4. It’s also led to longer booking lead times and a mix shift towards larger entire homes, especially those with four or more bedrooms, contributing to the increase in average daily rate,” she said.
Mertz noted that the platform’s cancellation rate rose slightly from 16% to 17% during the quarter. It was higher among customers using the pay-later option, though she said this was “not hugely material relative to the broader cancellations on the platform.”
Airbnb has been testing deferred payment options for years. In 2018, it allowed guests to pay 20% or 50% upfront, with the remainder due later. In 2023, the company partnered with Klarna to let users split payments into four instalments over six weeks.
A survey conducted by Airbnb and Focaldata found 60% of U.S. travellers considered flexible payment important, and 55% would use it when booking a holiday.
The Q4 2025 earnings report showed Airbnb’s revenue reached $2.78 billion, up 12% year-on-year. Gross booking value rose 16% to $20.4 billion, marking the company’s strongest quarter in two years.
Nights and experiences booked increased 10% to 121.9 million. Net income fell to $341 million from $461 million, revealing higher spending on product expansion including the new pay-later feature.
Property managers have reacted differently to the Airbnb “Reserve Now, Pay Later” rollout. Some worry about empty nights if guests cancel late.
Others see it as a way to stay competitive with online travel agencies like Booking.com and Expedia, which already offer flexible payments.
The feature now covers both domestic and international trips, expanding Airbnb’s reach beyond the U.S. pilot program launched in August 2025.
The post Airbnb Rolls Out Global “Reserve Now, Pay Later” Feature appeared first on Tech | Business | Economy.
