Vrbo Introduces Deferred Holiday Rental Payments

Holiday rental platform Vrbo has introduced a payment option allowing travellers to reserve eligible properties without an immediate charge, intensifying competition with Airbnb over flexible booking arrangements.

The Reserve Now, Pay Later feature was announced on Wednesday as part of Expedia Group's latest product update, which includes more than 30 new or enhanced services across its travel platforms. The option is initially available through Vrbo's website, with mobile application access scheduled to follow. It is designed to make booking accommodation easier for travellers organising family holidays and group trips.

Unlike Airbnb's comparable service, Vrbo requires payment seven days before the property's free cancellation deadline, which may fall 30 or 60 days before arrival. Airbnb can allow payment considerably closer to check-in, depending on the listing. Vrbo's approach provides guests with initial flexibility while giving property owners more certainty about reservations and potential cancellations. Expedia is also introducing tools for coordinating group bookings, managing contributions and planning activities within a single travel itinerary.

The launch follows evidence that deferred payment options can influence accommodation choices. Airbnb has reported strong adoption of its service, particularly among travellers booking larger properties, although cancellations have also increased. For holiday rental operators, the challenge is balancing booking convenience against revenue certainty. Vrbo's approach represents an attempt to attract customers without transferring excessive uncertainty to hosts. Its effectiveness will depend on whether travellers consider the earlier payment deadline sufficiently flexible compared with competing platforms.