New “Reserve Now, Pay Later” feature gives guests more flexibility—while keeping hosts protected by cancellation deadlines
Aug 19, 2025
In an effort to provide greater flexibility for travelers and streamline the booking process, Airbnb has introduced a new “Reserve Now, Pay Later” feature for U.S. users. This option lets guests book eligible listings at no upfront cost—essentially allowing them to reserve a stay without immediate payment. Payment is instead deferred until the end of the listing’s free cancellation window, giving both guests and hosts more breathing room.
Key takeaways
- New “Reserve Now, Pay Later” option: Airbnb now allows U.S. guests to book properties without making an upfront payment. Full payment is only required before the free cancellation period ends.
- Eligibility: Moderate and flexible policies only: Bookings must be on listings with either a flexible (cancel up to 24 hours before check-in) or moderate (cancel up to five days before check-in) cancellation policy.
- Hosts protected by timing: Since payment is due before the free cancellation window closes, hosts retain time to rebook if a guest cancels. Airbnb sends reminders to guests prior to that deadline.
- Continued expansion of payment flexibility: This addition builds on Airbnb’s existing flexible payment solutions: “Pay Part Now, Pay Later” launched in 2018, and the “Pay Over Time” plan with Klarna introduced in 2023.
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