Core Insights - Airbnb is launching its "Reserve Now, Pay Later" feature globally, allowing users to secure bookings without immediate payment and cancel without losing money upfront [1][2] Group 1: Feature Details - The "Reserve Now, Pay Later" feature was initially launched in the U.S. for domestic travel and allows users to be charged closer to their check-in date [2] - Properties with "flexible" or "moderate" cancellation policies are eligible for this feature, which aims to make travel more accessible by spreading costs [2] - Since its launch, the feature has seen a 70% adoption rate for eligible bookings [2] Group 2: Financial Impact - During Q4 2025 earnings calls, Airbnb reported that the feature contributed to an increase in nights booked, longer booking lead times, and a shift towards larger homes, particularly those with four or more bedrooms [4] - The average daily rate increased as a result of this shift [4] Group 3: Cancellation Rates - Airbnb's overall cancellation rate increased from 16% to 17% in the quarter, with a higher rate among users of the upfront booking product; however, this was deemed not significantly material compared to broader cancellations on the platform [5] Group 4: Market Research Insights - A survey conducted with Focaldata revealed that 60% of U.S. travelers consider flexible payment options important when booking holidays, and 55% indicated they would use such options [6] Group 5: Historical Context - Airbnb has been experimenting with pay-later products since 2018, including a product that allowed users to pay a portion of the total charges upfront [7] - In 2023, Airbnb partnered with fintech firm Klarna to enable users to pay for stays in four installments over six weeks [7]