Airbnb expands its "Reserve Now, Pay Later" globally | TechCrunch

"During its earnings calls for Q4 2025, Airbnb said that 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 of Airbnb, said during the call."

"The company launched the feature in the U.S. last year for domestic travel. Airbnb said that properties with a "flexible" or "moderate" cancellation policy are eligible for the upfront reservation. With this option, users get charged closer to their check-in date rather than at the time of booking. The feature mirrors "buy now, pay later" payment plans that have become popular in e-commerce, making expensive travel more accessible by spreading out costs."

Airbnb launched Reserve Now, Pay Later globally, allowing users to secure bookings without immediate payment. Properties with "flexible" or "moderate" cancellation policies are eligible for upfront reservations. Users are charged closer to their check-in date rather than at booking. The option mirrors buy-now-pay-later plans to make expensive travel more accessible by spreading costs. The feature saw roughly 70% adoption among eligible bookings after its U.S. debut and helped increase nights booked, longer booking lead times, and a shift toward larger entire homes, contributing to higher average daily rates. Cancellation rates rose slightly from 16% to 17%, higher among upfront-booking users. Surveys found 60% of travelers value flexible payment and 55% would use it.

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