Vrbo Introduces Buy Now, Pay Later for Vacation Rentals
Summary
Vrbo's partnership with Affirm introduces Buy Now, Pay Later (BNPL) options, allowing guests to pay in installments for stays up to 24 months. This gives guests flexibility and could increase bookings, but hosts should be aware of the potential risks of phantom bookings from Airbnb's Reserve Now, Pay Later (RNPL) feature.
Key Insights
- •Airbnb's 'Reserve Now, Pay Later' (RNPL) allows guests to book with $0 down, which may lead to an increased number of speculative 'phantom bookings'.
- •Vrbo guests can now pay for their trips in installments over periods ranging from 3, 6, 12, or even up to 24 months, with rates potentially starting at 0% APR.
Action Items
- ✓Regularly review your upcoming Airbnb bookings, especially those made far in advance with an RNPL option and prepare your re-booking strategies if a payment fails.Effort: lowImpact: medium
Tools & Resources
- →Vrbo Help Center: Vrbo's Help Center outlines how Affirm works.(vrbo.com/help)
Common Mistakes
- ⚠Airbnb's 'Reserve Now, Pay Later' feature presents the risk of 'phantom bookings' where a guest cancels just before the free cancellation period ends.
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