Airbnb’s $0-upfront “Reserve Now, Pay Later” booking option has expanded worldwide after launching in the U.S. last summer.
The expansion isn't a surprise. During Airbnb's Q4 earnings call, the company shared that RNPL saw over 70% adoption among eligible bookings and helped increase nights booked, and the aggregate cancellation rate only rose by about 1%. For Airbnb, they view the extra bookings as worth the small increase in cancellations.
How It Works
Guests booking an eligible listing can reserve with $0 due upfront, and payment is collected closer to check-in. RNPL only applies to listings with a moderate or flexible cancellation policy. Hosts on firm or strict cancellation policies aren't affected.
RNPL sits alongside Airbnb's other flexible payment options: Pay Part Now, Part Later and Pay Over Time with Klarna. Together, these give guests three ways to avoid paying the full amount at booking.
What the Data Shows
Airbnb is leaning on survey data to justify the global push. In a U.S. traveler survey with Focaldata, 60% of respondents said flexible payment options matter when booking, and 42% said they've missed out on preferred accommodation because they were coordinating payment with co-travelers. That second stat is the one Airbnb cares about, highlighting demand that was previously not converting into bookings.
From Q4 earnings data, RNPL also shifted bookings toward larger, higher-priced homes with four or more bedrooms. Q4 ADR hit $168, up 6% year over year. For hosts with premium listings, the feature seems to be pulling in guests who'd otherwise hesitate on a bigger booking.
Bottom Line
Airbnb believes that Reserve Now, Pay Later is a lever to grow bookings, and the U.S. results justified a global rollout. Whether individual hosts love it or not, the program is expanding. All worldwide listings on a moderate or flexible cancellation policy are part of this now. The only opt-out is a firm or strict cancellation policy, and that comes with its own trade-offs in search visibility and booking volume.
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