Airbnb is testing a new feature, Reserve Now, Pay Later, which enables some guests in the U.S. and Canada to make a reservation without paying anything at the time of booking.
If it’s an eligible booking, guests will see the option during checkout.
“If you choose Reserve Now, Pay Later, the Airbnb Platform will notify you during checkout of the amount, currency and when the payment of the Total Price is due and payable,” according to an update to Airbnb’s payment terms dated June 26. “On the relevant due date, Airbnb Payments will automatically charge the original Payment Method you used to make the booking.”
For example, if the booking for this loft in Chicago for September 11-13 were eligible, you’d be able to book it today without paying anything. But the host offers free cancellation only until August 12, so Airbnb might tell you it had to be paid in full before then to avoid a fee.
Prior to these tests, Airbnb guests have either paid the total price at the time of booking or some properties have allowed a partial payment up-front with the balance by a specified date.
There has been no announcement about the Reserve Now, Pay Later feature, and Airbnb will likely talk about it later in the year, according to a source familiar with the program.
Airbnb is testing the feature because affordability is a top priority for guests, the source said. Airbnb is trying out new ways for guests to pay for their stays.
Reserve Now, Pay Later is different than buy now, pay later schemes on other websites where bookers finance their vacations and pay in installments.
When Bookings Get Cancelled
Airbnb didn’t comment on the Reserve Now, Pay Later test so it’s unclear under what criteria bookings would be eligible for the program.
If the guest doesn’t complete the payment by the due date, Airbnb will cancel the booking, the updated payment terms stated.
The host’s experience does not change under the new feature because in the event of a non-payment or cancellation, hosts would receive any payout that their cancellation policy calls for, the source said. Airbnb Payments would collect any amount due from the guest, according to the terms of Reserve Now, Pay Later.