Airbnb Debuts 'Pay Less Up Front' Checkout Option to Lower Initial Cost of Bookings

[MacRumors]

Vacation and apartment rental service Airbnb this week launched a new way for its customers to cut down the initial cost of expensive bookings for an Airbnb location.

Called "Pay Less Up Front" and available on iOS, Android, and the web, the feature allows guests to choose to pay for part of their trip at the time of booking in the form of a 50 percent deposit "in most cases." When their check-in date draws closer, the app will send the guest a notification and then they'll have to pay for the rest of the trip.

The checkout update is Airbnb's first major overhaul to guest payment options, and prior to the feature Airbnb users had to pay for the entirety of their trip immediately. In testing, the company said that 40 percent of its guests chose Pay Less Up Front and were willing to opt for higher-value bookings due to the payment plan. The update also satisfied hosts, who saw more booking activity on costlier listings and improved lead times to prepare locations for guests.

Pay Less Up Front helps our hosts as well. 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. 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.

There are two requirements for Pay Less Up Front: the total stay for the listing has to cost $250 or more, and it must be booked at least 14 days ahead of the check-in date. If these requirements are met, guests should start seeing Pay Less Up Front as a checkout option now on Airbnb's iOS and Android apps, as well as on the desktop and mobile web versions of the site.

Article Link: Airbnb Debuts 'Pay Less Up Front' Checkout Option to Lower Initial Cost of Bookings

 

[calderone]

Encouraging people to buy things they can’t afford!! Woot!

 

[samh004]

While I generally give Macrumors the benefit of the doubt on some of their stories that read more like ads – as they do generally relate to some technology that works with something Apple sells – I am struggling to see the connection between Airbnb and the iOS Blog.

 

[Mac-lover3]

While I generally give Macrumors the benefit of the doubt on some of their stories that read more like ads – as they do generally relate to some technology that works with something Apple sells – I am struggling to see the connection between Airbnb and the iOS Blog.

They often write about iOS apps that bring drastic changes, this is quite drastic imo.. but in a negative way. But still it's nice to know about this change in their policy.

 

[macTW]

Slow business on higher end listings?

 

[petalino]

They often write about iOS apps that bring drastic changes, this is quite drastic imo.. but in a negative way. But still it's nice to know about this change in their policy.

I totally disagree.

Being an AirBnb user over the past 10 years, I booked many stays way in advance to get a nice place.
An example is my recent booking for 12 days late March in a large US City. The total cost is $1200.

I was delighted to see that I only have to pay 50% upfront and the rest 2 weeks before arrival.
Before, I had to prepay the whole $1200 for same stay, which I do every year attending a trade show.

This new form of payment will not change my spending habit, but will make the cashflow much easier to bear.


WAY TO GO AIRBNB!!!!!

 

[Mac-lover3]

I totally disagree.

Being an AirBnb user over the past 10 years, I booked many stays way in advance to get a nice place.
An example is my recent booking for 12 days in March (1.5 months from today) in a large US City. The total cost is $1200.

I was delighted to see that I only have to pay 50% upfront and the rest 2 weeks before arrival.
Before, I had to prepay the whole $1200 for same stay, which I do every year attending a trade show.

This new form of payment will not change my spending habit, but will make the cashflow much easier to bear.


WAY TO GO AIRBNB!!!!!

That's because you can afford it or are good with money. But people he can't afford it will be more eager to book because fo this.

 

[petalino]

Mac-lover3, this reasoning does apply to anyone who has a credit card..... buy now, pay later!

My guess is that this covers nearly 100% of the US population. Most of these people have learned how to manage their purchases without overspending.

 

[Mac-lover3]

Mac-lover3, this reasoning does apply to anyone who has a credit card..... buy now, pay later!

My guess is that this covers nearly 100% of the US population. Most of these people have learned how to manage their purchases without overspending.

That's definitely the case! Never said it was not the case with credit cards to me it's just another incentive to use credit.

 

[ncc1701d]

So long as there is no penalty for owners to cancel bookings without penalty, Airbnb will be stressful to use.

 

[patjem]

They often write about iOS apps that bring drastic changes, this is quite drastic imo.. but in a negative way. But still it's nice to know about this change in their policy.

It’s not a drastic App change. It’s a finance change for a company in need of more bookings.
[doublepost=1516129729][/doublepost]

So long as there is no penalty for owners to cancel bookings without penalty, Airbnb will be stressful to use.

There sure is. First one for free. After that they charge the full fee. And deduct it from your next booking

 

[petalino]

That's definitely the case! Never said it was not the case with credit cards to me it's just another incentive to use credit.

Which anyway is the form of payment AirBnb accepts; I think it is the only form of payment they accept.

 

[Mac-lover3]

Which anyway is the form of payment AirBnb accepts; I think it is the only form of payment they accept.

That's not the case though:
Payment options may include:

• Major credit cards and pre-paid credit cards (Visa, MasterCard, Amex, Discover, JCB)
• Many debit cards that can be processed as credit
• PayPal for select countries
• Alipay for China only
• Postepay for Italy only
• Sofort Überweisung for Germany only
• iDEAL for the Netherlands only
• Boleto Bancário, Hipercard, Elo, and Aura for Brazil only
• PayU for India only
• Google Wallet for US Android App only
• Apple Pay for iOS App only

Pre-paid credit cards and debit cards can be used.

 

[itsmilo]

I remember using Airbnb for the first time and not realizing it would charge my card immediately. I got a near panic attack lol we are used to pay for hotels the day of the arrival or on check out that it didn’t even dawn on me

 

[ncc1701d]

It’s not a drastic App change. It’s a finance change for a company in need of more bookings.
[doublepost=1516129729][/doublepost]

There sure is. First one for free. After that they charge the full fee. And deduct it from your next booking

I didn’t realise that (I’m not an owner, but use them a lot for holidays. Why does an owner get a pass on their first cancellation? The guest certainly doesn’t if they cancel. I think there are too many owners for that to be effective. Should be from first cancellation.