Airbnb's 'Reserve Now, Pay Later': What Hosts Need to Know

Airbnb has introduced Reserve Now, Pay Later (RNPL) in the U.S. – letting eligible guests book with $0 upfront and pay the full amount closer to check-in. It’s meant to lift conversions by reducing checkout friction, especially for group trips. But with last-minute cancellations likely to cause havoc for some – is this more bad news for hosts?

How Airbnb's Reserve Now, Pay Later system works

• Zero at booking. Guests confirm now and pay the total on a due date shown at checkout. This is not instalments – it's a single, delayed charge.

• Auto-charge and card changes. On the due date, Airbnb Payments automatically charges the stored card; guests can update the card in Payments History before the charge.

• Availability and scope. Early rollout is US stays, typically where listings have flexible or moderate cancellation policies.

• Cancellations and payouts. If a guest cancels before the payment due date, the scheduled charge is cancelled; crucially your payout still follows your cancellation policy.

• How this differs from Klarna/split-pay. Airbnb still offers Klarna “pay over time” plans (instalments) in some countries and “pay part now, part later.” Those are separate from RNPL.

Why hosts should care

The potential upside is that lower friction could increase bookings (especially for groups). Greater payment flexibility may make travel more accessible to some, while having a clear due date at booking means there are no surprises for either party.

RNPL could attract more guests who prefer paying later. It is also consistent with the current model for hosts who offer free cancellation as guest must pay what is due before arriving to keep the booking.

Consider also that other major platforms – notably Booking.com – have been offering free cancellation for years on a vast array of their portfolio. It appears that many consumers value the peace of mind of being able to cancel for free if their plans change. The trade-off, however, is increased risk. A failed payment close to arrival could free up blocked dates – leaving hosts with an empty calendar.

How Airbnb hosts can reduce risk while keeping the upside

1. Match policy to seasonality. RNPL seems to surface with flexible/moderate policies – use those in shoulder periods; keep stricter terms for peak.

2. Automate “payment due” nudges. Message guests at T-14/T-7/T-3 with a reminder and instructions to update cards via Payments History if needed.

3. Guard against gaps. Turn on gap night discounts and last-minute promos so any RNPL fall-through backfills quickly.

4. Tighten pre-arrival ops. Keep ID checks and house-rules messaging tight so low-commitment holds don’t convert into mismatched stays.

5. Diversify channels and direct. Keep direct and multi-OTA lanes open to spread risk beyond one platform’s payment rules.

6. Review unpaid reservations weekly. Cross-check upcoming trips with scheduled/“due” payments so you’re never surprised.