Airbnb Rolls Out 'Reserve Now, Pay Later' Feature to Global Markets

17.02.2026

Airbnb has announced the global expansion of its 'Reserve Now, Pay Later' feature, enabling users to secure accommodations without immediate payment. The service, which initially launched in the U.S. market for domestic travel last year, allows customers to cancel reservations without financial loss if plans change.

The feature is available for properties offering 'flexible' or 'moderate' cancellation policies. Users are charged closer to their check-in date rather than at the time of booking, mirroring the buy now, pay later (BNPL) payment models that have gained significant traction in e-commerce sectors.

According to Airbnb's data, the feature has demonstrated strong market adoption, with 70% of eligible bookings utilizing the deferred payment option since its initial launch.

During the Q4 2025 earnings call, Airbnb reported that the feature contributed to growth in nights booked. "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," stated Ellie Mertz, CFO of Airbnb.

Mertz acknowledged that the platform's overall cancellation rate increased from 16% to 17% during the quarter, with higher rates observed among users of the upfront booking product. However, she emphasized that this increase was "not hugely material relative to the broader cancellations on the platform."

Market Research Insights:

A survey conducted by Airbnb in partnership with Focaldata, a London-based market research firm, revealed compelling consumer preferences among U.S. travelers:

• 60% of respondents indicated that flexible payment options are important when booking accommodations
• 55% expressed willingness to utilize flexible payment solutions

Historical Context:

Airbnb has been iterating on deferred payment solutions for several years:

• 2018: Launched a product allowing users to book properties by paying 20% or 50% upfront, with the balance due later
• 2023: Partnered with fintech company Klarna to enable four-installment payments over six weeks

The global rollout of Reserve Now, Pay Later represents Airbnb's strategic approach to reducing booking friction and making travel more accessible by distributing costs over time, ultimately driving platform engagement and revenue growth.

Tags: fintech Airbnb BNPL Travel Tech Payment Solutions

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