January 17, 2018
Airbnb Introduces Flexible Pay Less Up Front Payment Option

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Travelers staying at Airbnbs had to pay 100% of the rental cost at the time of booking-up until now. Airbnb introduced a new payment option called Pay Less Up Front this morning. It does exactly what it says it does. Guests can now pay 50% of the total rental price at the time of booking, and the remaining 50% closer to their check-in date.


The total cost of the stay must be $250 or more and it must be booked at least 14 days before check-in to qualify for the Pay Less Up Front option. Airbnb will notify customers three days before charging them the second 50% of their stay price. Pay Less Up Front is already live on iOS, Android, mobile-web browsers, and desktop browsers.



Airbnb testing revealed that 40% of guests choose to use the Pay Les up Front feature and guests end up spending more money overall. They also tend to book stays with nearly double the lead time, which makes sense since they only have to pay 50% up front.


This is a neat development from Airbnb and should help it compete better with hotels. Travelers typically just pay a small deposit when booking hotels and pay the full price at checkout. As a reminder, you can earn up to 5X Delta miles and 1X Qantas mile per $1 on Airbnb spending. You’ll earn another 3X Chase points per $1 if you pay with the Chase Sapphire Reserve.


All Images Courtesy of Airbnb

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