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Airbnb Inc. has expanded its Reserve Now, Pay Later booking option worldwide. The service enables travelers to reserve properties and rooms without an upfront payment to reserve the space. Full payment is due prior to the closing of the free cancellation window, which is set by the property owner. The service is available for properties listed on Airbnb that have moderate or flexible cancellation policies.
Airbnb is a global online marketplace that allows property owners to list their homes for rent and travelers to book them for short- and long-term stays. Listings can be for homes and apartments or a room within a property.
Expanding its Reserve Now, Pay Later service globally is expected to make it easier for Airbnb users to book more expensive properties, such as those with four or more bedrooms, and make Airbnb more competitive with rivals such as Booking.com and Vrbo, which is part of travel-technology company Expedia Group Inc. The service will also make it easier for Airbnb users to book properties and rooms further out in advance, Airbnb says.
Since launching the Reserve Now, Pay Later service last August in the United States, Airbnb has seen a more than 70% adoption rate among users for eligible bookings.
Flexible payments options are becoming a more desirable option for travelers using online booking sites. A recent study conducted for Airbnb by Focaldata found that 60% of respondents say flexible payment options are important when it comes to booking a holiday, while 42% say they have delayed and missed out on their preferred accommodation option because of time spent coordinating how to pay for their trip with co-travelers. In addition, 55% of respondents say they use a flexible payment option, and one in ten say they always use the option when it is available. Focaldata surveyed 2,159 adults in the U.S. in July 2025.
Airbnb says Reserve Now, Pay Later complements its growing list of payment options, which include Pay Part Now, Part Later, a service that allows Airbnb users to pay a portion at booking upfront and the remainder closer to check-in, as well as its Pay Over Time service through Klarna.
