23 Jan Everything you need to know about Pay Less Up Front payments
Last week; Airbnb announced that they now offer all users the option to ‘pay less up front’.
So how will it work?
- When confirming a booking, users will be given the option to either pay in full immediately, or ‘pay less upfront’.
- This new option will allow users to pay 50% when booking and the other 50% 14-days prior to their stay.
- The upfront rate will aim to encourage users to go for higher-value bookings and to stay longer on their trip.
- This will also allow users to split the bill between their friends or family members.
- Users will only be given the option to pay less upfront if the reservation totals more than USD$250.
Embracing the ‘sharing economy’
By now most of us are all very familiar with this term, coined by Airbnb themselves, but they really are opening up and modernising the way in which we travel.
The big bosses at the top of Airbnb are using their power to over-take the hotel industry to be at the forefront of our minds when we are planning our next adventure.
So we can only hope that this new feature will be as successful as it was in their test group. Airbnb found that approximately 40% of their test subjects chose to take advantage of this new feature.
We as hosts can only hope that this encourages users to book their trips much earlier so that they can secure their booking at that specific rate, without having to deal with issues such as cancellations and non-full payment show-ups.