Vrbo Launches Reserve Now, Pay Later — With a Twist on Airbnb's Approach

Source

Skift https://skift.com/2026/10/28/vrbo-launches-reserve-now-pay-later-with-a-twist-on-airbnbs-approach/

What It Says

Vrbo has introduced a "Reserve Now, Pay Later" feature, allowing travelers to secure eligible vacation rentals with zero upfront payment. This rollout is part of a broader Expedia Group fall product release featuring over 30 new tools across Expedia, Hotels.com, and Vrbo.

While the feature mirrors a highly successful payment model launched by Airbnb, Vrbo’s implementation differs in its timeline. Airbnb charges guests seven days before the free cancellation window closes, which can be as close as 24 hours prior to arrival. In contrast, Vrbo charges the guest's card seven days before the host's specific cancellation window closes—which is frequently 30 or 60 days before check-in.

Why It Matters

Payment flexibility has become a major competitive battleground for online travel agencies (OTAs). Airbnb's version of this feature saw adoption exceed 70% of eligible bookings, driving longer booking lead times and shifting traveler demand toward larger, higher-ADR properties. However, it also increased Airbnb's cancellation rates by about one percentage point and delayed cash collection.

Vrbo’s more conservative payment timeline offers a host-friendly alternative. By collecting funds further in advance of the stay, Vrbo protects operators from last-minute cancellations while still offering travelers upfront booking flexibility.

Useful Signals

Host-Centric Terms: Vrbo secures payments based on the host’s policy window (often 30 to 60 days out), reducing the risk of calendar blocking and late cancellations compared to Airbnb's ultra-flexible windows.
Group Travel Features: The update includes tools to help group trip planners manage costs, track attendees, and collect individual financial contributions.
Broader Expedia Ecosystem Updates: The fall release also introduces multi-room booking capabilities, a conversational AI Activity Planner, and automated One Key lounge access or credit for flight delays exceeding 90 minutes.

STR Tech Report Take

For short-term rental operators, Vrbo's entry into the "no money down" booking space is a double-edged sword. On one hand, it is highly likely to boost conversion rates and attract larger group bookings. On the other hand, operators must prepare for a potential rise in cancellation rates and adjusted cash flow timelines.

Property management software (PMS) vendors and financial tech providers should ensure their systems can seamlessly track these delayed payment schedules. Because Vrbo's policy aligns with the host's existing cancellation windows, it represents a smart compromise that protects operator revenue while matching the modern guest's expectation for flexible payment terms.

Original Source

Skift: Vrbo Launches Reserve Now, Pay Later — With a Twist on Airbnb's Approach