Airbnb, one of the most popular vacation booking platforms in the United States, is introducing a new program that offers the option of reserving a stay with no upfront payments for U.S. guests traveling domestically.
“This marks a major step forward in Airbnb’s commitment to offer more flexible options for guests that may also lead to more bookings for hosts,” the company noted in a statement.
The new program is now available for those listings with a moderate cancellation policy and lets guests wait until shortly before the end of the listing’s free cancellation period to pay the full rental amount. Airbnb hosts typically decide on their own cancellation policies because payments are always due prior to that date. If the guest cancels, the host still has sufficient time to secure another booking.
Airbnb updated its payment policy based on data from a July survey of more than 2,000 adults nationwide. The results indicated that today’s travelers want more options when booking a getaway, especially when arranging a group trip that requires collective funds from friends or family.
The survey showed that 60 percent of respondents shared that flexibility is important when it comes to booking any type of vacation, while 55 percent said they typically use flexible payment options when purchasing products or services. More than 42 percent noted they have delayed or missed out on a favorite accommodation because of the time spent coordinating how to pay for the trip with co-travelers.
The platform continues to offer its traditional payment options of paying part of the cost at the time of booking and paying the remainder before the end of the cancellation deadline. In this scenario, a guest may be able to choose a half payment when booking, and the other half later, or a 20 percent payment up front, and an 80 percent payment later.
Eligibility for partial payments includes paying with a credit or debit card, or PayPal, and a check-in date at least 14 days away with a short-term stay of less than 28 nights. Reservations must have a total value of at least $50, including taxes and fees.
For travelers who want to pay in installments over time, Airbnb also offers payment using Klarna, an online platform offering interest-free payments for three or four installments. Klarna accepts most major debit and credit cards, such as Visa, Discover, Maestro, and Mastercard, as well as Apple Pay.
Airbnb traces its roots back to San Francisco in 2007, when two hosts rented their home to three guests. In almost 20 years, the company has grown to more than 5 million hosts and more than 2 billion guests globally.
