Airbnb is expanding its “Reserve Now, Pay Later” feature globally, allowing users to secure bookings without immediate payment and cancel without losing money upfront. The feature, which lets users get charged closer to their check-in date, launched in the U.S. last year and has seen 70% adoption for eligible bookings.
Properties with “flexible” or “moderate” cancellation policies are eligible for the upfront reservation option. During Q4 2025 earnings, CFO Ellie Mertz said the feature contributed to longer booking lead times and a shift toward larger entire homes, especially those with four or more bedrooms.
A recent survey by Airbnb and Focaldata found that 60% of travelers consider flexible payment options important when booking holidays, while 55% said they would use such payment options. The feature mirrors “buy now, pay later” plans popular in e-commerce, making expensive travel more accessible by spreading out costs.
