Overview
- The feature lets guests book eligible stays without paying upfront and get charged closer to check-in for listings with flexible or moderate cancellation policies.
- Airbnb reports 70% adoption among eligible bookings during testing, which informed the decision to expand the option globally.
- CFO Ellie Mertz said the product increased nights booked in Q4 2025, extended booking lead times, and shifted demand toward larger entire homes, lifting average daily rates.
- Overall cancellations rose to 17% from 16% for the quarter and were higher among users of the pay-later option, which the company described as not hugely material.
- The rollout follows earlier payment experiments, including partial-upfront options in 2018 and a 2023 Klarna partnership, and a survey indicating 60% of U.S. travelers value flexible payment and 55% would use it.