Vrbo Launches Reserve Now, Pay Later, With Host-Friendlier Terms Than Airbnb

Vrbo has launched Reserve Now, Pay Later. Travelers can now book eligible vacation rentals with no money due at the time of booking. It is Vrbo's answer to an option Airbnb says has helped lift its business.

The feature is part of an Expedia Group fall release covering more than 30 new and improved features across Expedia, Hotels.com and Vrbo. According to Skift, it is live on Vrbo's website and will reach the app over the coming weeks.

How Vrbo's version differs

The key detail is timing. Vrbo charges the card on file seven days before the host's free cancellation window closes. On many Vrbo listings that window sits 30 or 60 days before check-in. On Airbnb, Skift reports, the equivalent window can fall as close as 24 hours before arrival.

That makes Vrbo's approach look friendlier to hosts. Guests have less room to hold a booking for free and cancel at the last moment. Skift also points out the trade-off: guests get less flexibility about when they can cancel without penalty, which could blunt the boost Airbnb saw.

What Airbnb reported

Airbnb launched Reserve Now, Pay Later for US domestic stays in August 2025 and took it global in February. Skift says Airbnb has told investors adoption passed 70% of eligible bookings. It also pushed demand towards homes with four or more bedrooms, which raised average daily rates. The cost was a cancellation rate that rose about one percentage point to roughly 17%, and later cash collection that weighed on free cash flow.

The rest of the release

The wider package leans towards families and complex trips. It includes multi-room bookings in a single itinerary, split-city packages, a conversational Activity Planner, One Key lounge access for 90-minute flight delays, and AI tools for search and support. Expedia says new tools will also help group planners confirm who is coming, collect contributions and manage the cost of a whole stay.

What it means for property managers

If you list on Vrbo, expect more bookings made well ahead with no payment taken. Check your cancellation policy, because it now sets when the guest is charged. A strict policy means money is collected sooner relative to arrival. A flexible one means a longer stretch where the guest can leave without paying. Larger homes are the likely winners, as they were on Airbnb, but watch your cancellation rate and cash flow in the first few months.