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The Host’s Guide to the Reserve Now, Pay Later Airbnb Feature
Airbnb rolled out a new feature allowing US guests to reserve now, pay later on Airbnb for domestic travel. These payment options allow guests to postpone payment to a later date. Travelers are very much concerned with flexibility, so this is another company's action to make them really feel listened to and in control of the travel process.
Find out what this means for guests and Airbnb hosts alike, what benefits, considerations, and possible results and consequences scheduled payments will have on the Airbnb business of US hosts.
How Does the Reserve Now Pay Later Feature Work on Airbnb?
Reserve Now, Pay Later is available for US guests booking eligible US-based listings, which means it's not available (yet) in all countries.
Usually, the payment process on Airbnb is set up so that guests are required to make an upfront payment. If a guest wants to postpone immediate payment, they need to choose this option at checkout. The date by which payment has to be made will be specified. This means you can pay earlier if you wish, but not later.
If you don't pay beforehand, the scheduled payment will be processed automatically on the due date using your preferred, original payment method. The Airbnb platform will automatically charge the total amount. With this option, guests won't be able to divide payments into installments.
Pay attention that this is an eligible feature, meaning it won't be available for every single booking. Airbnb decides based on its rules which stays are eligible for scheduled payments.
Benefits of Scheduled Payments for Guests and Hosts
Scheduled Airbnb payments have some clear advantages for both parties.
For Airbnb guests
More flexibility
Airbnb offers guests flexible payment options, rather than requiring immediate payment.
Possibility to lock in desired dates and prices
Guests can secure their desired dates, and even if they cancel, they can receive a full refund before the free cancellation period ends.
No additional costs
Airbnb charges no fees for postponing payments through the Reserve Now, Pay Later option.
For Airbnb hosts
Increased bookings
Airbnb hosts can expect more bookings coming their way.
Revenue protection
Hosts receive the total payment and the full amount before the check-in date.
Beneficial when hosting groups
Airbnb found that larger groups are particularly interested in having more financial flexibility when booking accommodation.
What Types of Stays Can't Use Scheduled Payments?
Some types of reservations don't qualify for the Reserve Now Pay Later Airbnb payment option.
- Reservations for business travel booked using Airbnb for Work
- Airbnb Services and Experiences
- Monthly stays (28+ nights)
Can Reserve Now Pay Later Bookings Be Canceled?
Guests can cancel their booking as long as the host's cancellation policy allows for it. Listings that are eligible for scheduled payments have either a flexible or moderate cancellation policy, which means you can cancel according to the rules of the policy.
If you make a reservation using Reserve Now, Pay Later and cancel before the payment is due, your scheduled payment will be cancelled. Otherwise, a guest can get a refund according to the policy.
What If a Guest Modifies the Booking?
If guests modify their reservation and extend their stay so that the total cost increases, they are required to make an additional partial payment immediately at the time of modification.
Can Hosts Turn On/Off This Feature?
Reserve Now, Pay Later is available for listings with flexible and moderate cancellation policies. But hosts have no control over this feature; it's Airbnb that decides about eligible listings.
FAQ
Do you have to pay in full up front to reserve an Airbnb?
You can book an Airbnb while postponing your payment to a later date by opting for Reserve Now Pay Later at checkout.
How long can you reserve on Airbnb without paying?
How long you can hold a reservation without paying depends on the due date, which is established based on your check-in date and the host's cancellation policy. You must pay the full amount prior to check-in.
What if payment fails?
If a guest's payment is declined, Airbnb will notify the guest and give them a 72-hour window to complete payment using an alternative method.
Takeaway for Airbnb Hosts
Although hosts have no control over this feature being active for eligible domestic stays, the strategy is designed to increase bookings on the platform, and hosts do get paid before check-in.
If you're a host looking to up your game by automating the daunting parts of your vacation rental business, try out iGMS, your management app that supports you daily.
About the Author
Zorica Milinkovic is a B2B SaaS writer who is passionate about psychology, marketing, and, when inspiration strikes, cooking. You can find her on LinkedIn.
