Airbnb lets US guests defer payments until closer to check-in
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Airbnb said the the "Reserve Now, Pay Later" feature could help US-based hosts get more reservations.
PHOTO: REUTERS
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WASHINGTON – Airbnb is letting guests in the US reserve some trips without paying upfront, an effort to win over budget-conscious travelers who may be reluctant to book in advance.
The feature, called “Reserve Now, Pay Later,” is available for US-based rental listings that have a flexible or moderate cancellation policy, the company said in a statement Aug 13.
Guests do not need to pay the full amount until eight days before the end of the listing’s free cancellation period, it said. The option is not a loan and doesn’t require credit checks or interest, it added.
This is the latest flexible payment option the online travel company has added in recent years to appeal to travelers who may be holding out on making reservations, particularly if they’re on a budget or coordinating group trips.
Airbnb said the new feature could help US-based hosts get more reservations, after it warned last week of moderating gains through the remainder of the year.
The North American business has been a drag on overall bookings growth, which rose 7.4 per cent in the second quarter and would have seen a double-digit increase excluding the region, Airbnb said.
The company already offers the option for guests to pay for a portion of their reservation and the rest until closer to check-in. It also allows customers to pay by instalments through the buy-now-pay-later service Klarna Group. BLOOMBERG
