- Airbnb’s payment option enables U.S. travelers book accommodations without having to pay upfront. This may increase bookings as well as offer a more competitive alternative against traditional travel agents.
- Airbnb, despite concerns, ensures that hosts will receive payment according to existing policies. This maintains booking reliability.
Airbnb has launched an option called “Reserve Now and Pay Later” for travelers in the United States. The aim is to increase booking flexibility for guests, while also increasing stays for hosts. The new feature allows guests who choose listings that have moderate or flexible cancellation policy to book domestic accommodations with no upfront payment. Payment must be made before the end date of the cancellation period to ensure that hosts are able to secure bookings in the event of a cancellation.
This initiative is the result of a successful trial earlier this summer. Despite initial concerns by some members of the vacation rental industry about increased cancellations, it was deemed a success. Airbnb assures that the new feature adheres to existing policies. It allows cancellations until 24 hours, or five days prior to check-in. The host will still receive payments according to their normal cancellation policies.
Airbnb’s spokesperson stated that hosts were generally receptive towards tools that may boost demand. The company is confident that these added booking options will increase over time. Airbnb has not disclosed the specific results of the trial, but it is looking at expanding the feature.
Airbnb has already offered “Pay Now, Pay Later” and “Pay Overtime With Klarna”. This new option is a complement to those options. It also follows the recent earnings report of the company, which revealed high levels of guest satisfaction with its new features, despite some criticisms after launch.
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