by Mia Taylor
Last updated: 3:40 PM ET, Thu August 14, 2025
It seems Airbnb has finally caught on that travelers do not like having to pay for hotel or home share accommodations months in advance of when those stays are set to take place.
The home sharing giant today announced a new feature meant to address that irksome feature of the booking process.
The company officially announced the launch of what it is calling “Reserve Now, Pay Later” an option meant to gives US travelers booking eligible domestic stays the chance to reserve a listing without paying anything upfront at the time of booking.
“This marks a major step forward in Airbnb’s commitment to offer more flexible options for guests that may also lead to more bookings for hosts,” Airbnb said in a statement.
The new feature will be available for listings that have either a moderate or flexible cancellation policy, and will not require guests to pay the full booking amount for a stay until shortly before the end of the listing’s free cancellation period.
Separately, Airbnb said that cancellation policies selected by the hosts themselves remain unchanged. Airbnb also underscored that “because the payment from guests is always due before the free cancellation period ends, hosts have time to secure another booking even if a guest cancels.”
Airbnb’s new feature comes as the home sharing platform says new data has revealed that today’s travelers are seeking more flexibility when it comes to booking a stay, particularly group trips “that requires arranging funds with friends or family.”
The move will also make Airbnb somewhat more competitive with hotels that have long allowed travelers who book stays to pay for those stays after checking out or closer to the time of arrival.
In a recent survey of US travelers conducted by Airbnb and Focaldata:
- 60 percent of respondents said having flexible payment options is important when it comes to booking a holiday.
- 55 percent said they use a flexible payment option with one in ten saying they always use that option when available.
- 42 percent said they have delayed and missed out on their preferred accommodation option because of time spent coordinating how to pay for their trip with co-travellers.
“With Reserve Now, Pay Later, guests can secure their booking without an immediate payment, perfect for group trips or budget-conscious planning,” the company said in a statement.
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