Airbnb expands its “Reserve Now, Pay Later” globally
Source: TechCrunch
Global launch of “Reserve Now, Pay Later”
Airbnb announced on Tuesday that it is rolling out its “Reserve Now, Pay Later” feature globally. The option lets users secure bookings without an immediate payment and cancel without losing money upfront if their plans change.
Eligibility and adoption
The feature, first launched in the U.S. last year for domestic travel, is available for listings with a flexible or moderate cancellation policy. Guests are charged closer to their check‑in date rather than at the time of booking. This mirrors “buy now, pay later” plans popular in e‑commerce, making expensive travel more accessible by spreading out costs. Since its introduction, the feature has seen 70 % adoption among eligible bookings.
Image Credit: Airbnb
Impact on Q4 2025 earnings
During its Q4 2025 earnings call, Airbnb said the feature helped grow nights booked in the quarter.
“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,”
— Ellie Mertz, CFO, Airbnb
Cancellation rates
Mertz noted that Airbnb’s overall cancellation rate rose from 16 % to 17 % for the quarter, with a slightly higher rate among users of the upfront booking product. She added that this increase was “not hugely material relative to the broader cancellations on the platform.”
Traveler preferences survey
Last year, Airbnb surveyed U.S. travelers in partnership with Focaldata, a London‑based market research firm. 60 % of respondents said a flexible payment option is important when booking a holiday, and 55 % indicated they would use such an option.