Airbnb is rolling out its “Reserve Now, Pay Later” feature worldwide, enabling users to book accommodations without immediate payment and cancel without upfront financial loss, enhancing flexibility for travelers.
The feature, which allows users to be charged closer to their check-in date, was initially launched in the U.S. last year and has seen a significant 70% adoption rate for eligible bookings. Properties with “flexible” or “moderate” cancellation policies are eligible for this upfront reservation option, providing users with more control over their travel plans.
During Q4 2025 earnings, Airbnb CFO Ellie Mertz highlighted that the feature contributed to longer booking lead times and a noticeable shift toward larger entire homes, especially those with four or more bedrooms. This trend indicates that travelers are increasingly planning ahead and opting for more spacious accommodations.
A recent survey conducted by Airbnb and Focaldata revealed that 60% of travelers consider flexible payment options to be an important factor when booking holidays, while 55% stated that they would utilize such payment options. This data underscores the growing demand for flexible financial arrangements in the travel industry.
The “Reserve Now, Pay Later” feature mirrors the popular “buy now, pay later” plans seen in e-commerce, making expensive travel more accessible by allowing users to spread out their costs. By expanding this feature globally, Airbnb is catering to the evolving needs of travelers and enhancing the overall booking experience.
