Airbnb, the premiere online hospitality service that allows people to directly rent their spaces to travelers has debuted a new feature to make the service more affordable.
Before Jan. 15, travelers paid 100 percent of the fee at the time of booking, but now with the Pay Less Up Front feature, guest can pay a deposit, or half and then the rest by the check-in date.
“At Airbnb, we’re working to bring the world closer together through magical travel, powered by people,” the company said in a statement. “A big part of making travel magical is offering convenient and flexible ways to book trips.”
“In November, we became the first major accommodations provider to make group travel seamless, allowing guests to easily split payments with friends or family. Now, we’re making paying for travel even more convenient with Pay Less Up Front.”
Airbnb said in their testing of Pay Less Up Front, they saw a clear demand for more convenient payments. Given the option of paying less up front, 40 percent of guests chose to do so, and opted for higher-value bookings on the whole.
“Pay Less Up Front helps our hosts as well,” they said. “Given the ability to pay in installments, hosts won’t lose out on bookings from cash flow-sensitive guests who prefer not to pay the entire amount up front.”
To qualify for Pay Less Up Front, the total stay must be $250 or more, and be booked at least 14 days from the check-in date according to Airbnb.
“What’s more, we’ve found that Pay Less Up Front encourages bookings further in advance: Compared with ordinary bookings, the Pay Less Up Front payment option led to bookings with nearly double the lead time, helping hosts to secure and manage bookings more easily.”