Vrbo has added two new tools for U.S. travelers: a "Reserve Now, Pay Later" payment option and an AI-powered search tool. The payment update lets guests book eligible vacation rentals with $0 due at checkout, changing both when guests pay and how hosts are protected from cancellations.
The new payment feature launched less than a week after Vrbo’s parent company, Expedia, rolled out AI search during its fall product update.
How Vrbo’s Reserve Now, Pay Later Works
Guests keep a card on file when booking. Vrbo charges the full balance automatically 7 days before the property’s free-cancellation window closes. For example, if a stay starts on October 19th and the guest can cancel for free through October 12th, Vrbo charges the card on October 5th.
If a payment fails, Vrbo tries the card again for two days, then gives the guest four days to add a new card. If the guest still hasn’t paid 12 hours before the free-cancellation deadline, Vrbo cancels the stay and reopens the calendar. Because this all happens before the refund window ends, hosts don’t lose bookings due to failed payments after their cancellation deadline has passed.
Vrbo said the feature uses each property’s current cancellation policy, requires no work from hosts, and will not affect host payouts.
Vrbo has not shared booking numbers yet, but Airbnb has. In a letter to shareholders for Q4 of 2025, Airbnb said travelers used its pay-later option on more than 70% of eligible bookings. On an earnings call, Airbnb CFO Ellie Mertz said the option raised overall cancellations by about one percentage point, to roughly 17%. At the same time, guests booked further in advance and reserved larger homes. Airbnb rolled out the feature worldwide in February.
Searching with Full Sentences
Vrbo’s AI search is now live on its U.S. English website and app. Instead of clicking through drop-down filters, travelers can type out what they want in plain sentences. Vrbo’s search results also include short explanations showing why each home fits the request. Expedia first showed off the tool at its Explore conference in May, pitching it as an easier way to plan group trips.
Both Platforms Are Adopting Each Other’s Ideas
The rollouts reflect a broader trend of alignment between the two largest STR platforms, with both companies steadily rolling out each other's features.
A few recent updates started on Vrbo before moving to Airbnb:
- Paid Ads for Listings: Vrbo launched paid search spots on September 1. A week later, Airbnb CEO Brian Chesky called sponsored listings a potential $1 billion opportunity.
- Rain Refunds: Vrbo added WeatherPromise rain protection in February. Airbnb added its own rain insurance eight months later, in October.
Other features started on Airbnb before coming to Vrbo:
- Cancellation Deadlines: In September, Vrbo added full-refund cutoff dates of five days and one day before check-in. These match Airbnb’s "Moderate" and "Flexible" policies.
- AI Search and Payment Timing: Airbnb launched its AI search in the U.S. on September 30th, about four weeks before Vrbo released its version on October 28th. "Reserve Now, Pay Later" is the latest match, arriving on Vrbo almost 15 months after Airbnb launched it in the U.S.
.webp)
