Airbnb introduces flexible Reserve Now Pay Later option

Airbnb has unveiled a new feature allowing Malaysian guests to reserve accommodation without paying upfront, marking a significant shift in how travellers plan and secure their stays. The Reserve Now, Pay Later option enables users booking eligible listings worldwide to confirm a reservation without any immediate payment at the time of booking.

The feature responds directly to evolving consumer behaviour, with flexibility now a decisive factor in travel planning. A recent survey commissioned by Airbnb and conducted by Focaldata between January and February 2026 among 536 Malaysian adults found that 68 per cent of respondents consider flexible payment options important when booking a holiday. About 67 per cent said they already use flexible payment methods, and 88 per cent intend to use such options for their next trip.

The findings also reveal that nearly half of Malaysian travellers — 46 per cent — have delayed or missed out on preferred accommodation due to time spent coordinating payments with friends or family members. The new feature aims to eliminate such friction, particularly for group trips that require pooling funds.

How the feature works for guests and hosts

Reserve Now, Pay Later is available for eligible listings globally that carry moderate or flexible cancellation policies. Guests are not required to pay the full amount until shortly before the end of the listing’s free cancellation window. Importantly, hosts’ selected cancellation policies remain unchanged.

Because payment must be completed before the free cancellation period ends, hosts retain the opportunity to secure alternative bookings if a guest cancels within the allowed timeframe. This structure balances flexibility for travellers with operational security for property owners.

Airbnb noted that a similar rollout in the United States contributed to accelerated growth in nights and experiences booked in the fourth quarter of 2025 compared with the previous quarter. The Malaysian launch forms part of a broader strategy to expand flexible payment options globally, excluding bookings paid in Brazilian Real, Indian Rupee, or Turkish Lira.

Supporting 2026 travel trends and major events

The timing aligns with Airbnb’s 2026 travel predictions, which highlight growing interest in international city getaways and experiences that encourage travellers to disconnect from digital screens and reconnect with nature. Major global events such as Coachella and the FIFA World Cup are also fuelling travel demand.

Reserve Now, Pay Later complements Airbnb’s existing Pay Part Now, Part Later option, where guests can split payments between booking and closer to check-in. Together, these features aim to make travel planning more affordable and accessible, while enabling Malaysian travellers to lock in sought-after listings early and plan their journeys with greater financial confidence.

The feature is now available for Malaysian users booking eligible stays worldwide under flexible or moderate cancellation terms.