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Vrbo Rolls Out Reserve Now, Pay Later With Stricter Cancellation Terms Than Airbnb
Vrbo now lets travelers book eligible vacation rentals with nothing due at checkout, mirroring a payment option Airbnb credits with driving growth. The twist: Vrbo's version leans more toward hosts and narrows the window in which guests can cancel without a penalty.
The feature went live on Vrbo's website on Wednesday and is set to reach the Vrbo app over the coming weeks, according to Expedia Group. It applies to eligible properties and forms part of a broader fall product release spanning more than 30 new and enhanced tools across Expedia, Hotels.com and Vrbo.
Group trip planning is among the areas Expedia is targeting with the release. The company said the new tools will help organizers confirm who is attending, collect contributions from travelers and manage the cost of an entire stay.
Airbnb introduced its own Reserve Now, Pay Later option for U.S. domestic stays in August 2025 and extended it worldwide in February. The option covers listings with flexible, moderate, limited or firm cancellation policies, and Airbnb charges guests the full amount seven days before the free cancellation window closes.
Vrbo's structure differs. While the up-front payment is removed, guests have less room to cancel without incurring a penalty than they would under Airbnb's terms, a design that appears to give hosts more protection.
Paying nothing at the point of booking has been one of the clearest growth levers for Airbnb since it debuted the feature, and Vrbo's adoption brings the mechanic to Expedia Group's vacation rental brand for the first time.