Airbnb will allow US users book stays without paying upfront

Airbnb has unveiled an innovative feature called "Reserve Now, Pay Later," allowing U.S. users to book accommodations without needing to pay upfront. This new functionality aims to provide greater flexibility for travelers, enabling them to cancel their reservations with reduced hassle if their plans change. The feature is available for properties that adhere to either a "flexible" or "moderate" cancellation policy. With a flexible policy, users can cancel their bookings up to 24 hours prior to check-in, whereas moderate policies permit no-fee cancellations until five days before check-in. While no upfront payment is required, users must settle the full amount of their stay before the free cancellation period concludes, with Airbnb sending timely reminders to ensure they don't miss the deadline. Airbnb is not new to the realm of innovative payment options. Back in 2018, the company introduced a "Pay part now, part later" system, allowing users to pay a portion of their total—either 20% or 50%—at the time of booking and settle the remainder later. More recently, in 2023, a partnership with Klarna was formed, enabling users to break down their payments into four installments over a six-week span. A survey conducted by Airbnb in collaboration with Focaldata revealed that 55% of respondents favored a flexible payment option when booking accommodations, with 42% expressing that they had missed out on desired properties due to complications in coordinating payments with fellow travelers.