STAYSkift · 2h ago
Vrbo Launches Reserve Now, Pay Later — With a Twist on Airbnb’s Approach
Executive Brief
The 30-second read
Vrbo has introduced a new payment model allowing travelers to reserve properties without upfront costs. This strategic shift aims to match a key growth driver utilized by Airbnb while prioritizing host-friendly cancellation terms.
- 01Vrbo now offers reserve now and pay later options to compete with Airbnb's growth strategy
- 02The new payment model provides travelers less flexibility regarding penalty-free cancellation windows
- 03Management has designed the system to be more favorable to property hosts than competing platforms
- 04Market observers question if stricter cancellation policies will hinder Vrbo's projected market share gains
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Paying nothing up-front has been one of Airbnb's clearest growth levers. Vrbo's version of Reserve Now, Pay Later seems more host-friendly, but it gives guests less flexibility in when they can cancel without penalty. Will that weaken the tailwinds for Vrbo that Airbnb got?