Airbnb Announces ‘Reserve Now, pay Later’ Service
San Francisco-based Airbnb on Thursday announced a new payment program it calls “Reserve Now, Pay Later” whereby users can defer payments for upcoming reservations. The company says Reserve Now, Pay Later affords guests “greater flexibility” by allowing them to put $0 money down upfront on all domestic bookings.
I learned of Airbnb’s initiative in a post on X by my friend Natalie Lung of Bloomberg.
“Available for listings with a moderate or flexible cancellation policy, guests don’t need to pay the full amount until shortly before the end of the listing’s free cancellation period. Cancellation policies selected by hosts remain unchanged, and 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 wrote in describing Reserve Now, Pay Later in its announcement. “This feature comes as new data reveals that today’s travelers are seeking more flexibility when it comes to booking a stay, particularly a group trip that requires arranging funds with friends or family.”
Notably, Airbnb mentions results of a survey of American travelers it conducted with Focaldata. Airbnb said 55% of respondents indicated they take advantage of flexible payment options, while 10% reported always opting for such services. Similarly, 42% said they have chosen to “[delay and miss out] on their preferred accommodation option because of time spent coordinating how to pay for their trip with co-travelers.”
Like with laptops, the foundational piece of this news from Airbnb is accessibility. I’ve covered the company extensively over the last five years or so, having interviewed numerous executives there, and the reality is the new Reserve Now, Pay Later service is yet another part of Airbnb’s work in accessibility. Granted, it isn’t expressly or overtly designed for the disability community’s sake. The truth is, however, as with Walmart’s discounted $600 M1 MacBook Air I wrote about yesterday, most disabled people are extremely, perpetually budget-conscious. The majority of us don’t make much money, so anything we can do to save a few bucks here and there is appreciated in both peace of mind and by our pocketbook. In Airbnb’s case, that a disabled person could delay payment on a reservation makes it such that travel becomes far more accessible than aspirational. Better still, people with disabilities can utilize the accessibility features Airbnb has empowered its hosts to offer guests. Although Airbnb positions Reserve Now, Pay Later as a measure of convenience for the mainstream, the fact of the matter remains accessibility, as ever, plays a central role in shaping its relevance and appeal.
