Airbnb introduces 'Reserve Now, Pay Later' to boost bookings and user appeal. Analysts predict a 12.13% upside from current price, with a consensus 'Hold' rating and significant potential upside based on GF Value estimates.

Airbnb introduces "Reserve Now, Pay Later" to enhance booking flexibility and attract more users. Analyst consensus suggests a "Hold" rating for Airbnb stock, with a potential upside. GuruFocus projects a significant upside based on GF Value estimates, with an estimated fair value of $188.47 and a potential upside of 50.26% from the current price of $125.43.

Airbnb has recently introduced a new booking option, "reserve now, pay later," designed to enhance user flexibility and potentially attract more customers. This feature allows users in the US to book a reservation without making an immediate payment, deferring the payment to a later date before check-in [1].

The new option is available for stays with a moderate or flexible cancellation policy and integrates Airbnb's existing "pay part now, pay later" option. It will require payment before the end of the stay's free cancellation period, ensuring hosts can secure another booking if a guest cancels [1]. The feature also integrates Airbnb's buy now pay later service, Klarna, for seamless transactions [1].

This move comes amid a strong performance for Airbnb in the second quarter of 2025. The company reported a 13% year-on-year increase in revenues to $3.1 billion, driven by higher nights stayed and a small increase in average daily rates [2]. The company also saw a 7% increase in nights and seats booked globally, with notable growth in Latin America and Asia Pacific [2].

Airbnb's stock has received mixed analyst ratings. While several analysts have downgraded their ratings, others have maintained a "hold" rating, suggesting a neutral outlook on the company's stock [4]. GuruFocus projects a significant upside for Airbnb stock, with an estimated fair value of $188.47 and a potential upside of 50.26% from the current price of $125.43 [4].

Looking ahead, Airbnb is expanding its AI-powered customer service agent to all US users, aiming to reduce human intervention by 15% and eventually extend this to more countries and languages [2]. The company is also planning to increase the number of hotels listed on its platform, focusing on independent and boutique properties outside North America [3].

References:
[1] https://www.theverge.com/news/759637/airbnb-reserve-now-pay-later-stays
[2] https://www.hotelowner.co.uk/197831-airbnb-q2-revenues-surge-13-to-3-1bn/
[3] https://shorttermrentalz.com/news/airbnb-q2-2025-hotel-expansion-earnings-results/
[4] https://www.marketbeat.com/instant-alerts/airbnb-nasdaqabnb-rating-increased-to-hold-at-citizens-jmp-2025-08-13/