Airbnb Introduces "Reserve Now, Pay Later" Option for U.S. Guests

Airbnb has launched "Reserve Now, Pay Later" option for U.S. guests, allowing them to reserve a stay with no money down. This move aims to provide more flexible payment options for guests, aligning with the company's commitment to expanding payment choices.

Airbnb has recently launched a new feature called "Reserve Now, Pay Later" for U.S. guests, allowing them to book stays without any upfront payment. This move aims to enhance flexibility for travelers and aligns with Airbnb's broader strategy to expand payment options [2].

The new feature allows guests to reserve domestic stays without having to pay anything upfront. Hosts set their own cancellation policies, with payments due only "shortly before" the free-cancellation period ends for flexible policies or a little earlier for moderate policies [2]. This feature is designed to compete with traditional hotels and other online travel agencies by offering a more flexible payment option.

The introduction of this feature comes as Airbnb continues to report strong financial performance. In its second-quarter earnings report, Airbnb saw a 13% increase in revenues year-on-year to $3.1 billion, driven by higher nights stayed, a small increase in average daily rates, and the timing of Easter [1]. The company also reported a 7% increase in nights booked, with the strongest growth in Latin America and Asia Pacific. Adjusted earnings before interest, tax, depreciation, and amortization rose 17% to $1 billion [1].

Looking ahead, Airbnb plans to expand its artificial intelligence-powered customer service agent to all US users, reducing the need for human agents by 15%. The company also announced a new $6 billion share buyback program [1]. These initiatives reflect Airbnb's commitment to innovation and growth.

References:
[1] https://www.hotelowner.co.uk/197831-airbnb-q2-revenues-surge-13-to-3-1bn/
[2] https://skift.com/2025/08/14/reserve-now-pay-later-airbnbs-new-no-upfront-payment-option/