Vrbo, part of the Expedia Group, announced the launch of a Reserve Now, Pay Later payment option on its platform. The feature enables travelers to reserve eligible vacation rental properties without requiring payment at the time of booking, shifting the financial commitment to a later date. This addition marks the company’s response to a payment innovation that competitor Airbnb has credited with generating substantial business momentum.
Airbnb introduced its version of this deferred payment model for U.S. domestic travel in August 2025, subsequently expanding the offering globally in February. The functionality is available across listings with various cancellation policy types, including flexible, moderate, limited, and firm options. Under Airbnb’s structure, guests are charged the full reservation amount seven days before the cancellation window closes.
The Vrbo feature rollout is part of a broader fall product initiative from Expedia Group that encompasses more than 30 new and upgraded features distributed across its portfolio companies, including Expedia and Hotels.com. The company indicated the payment option will include functionality to help group travel planners identify confirmed attendees, gather financial contributions, and oversee overall stay expenses. Vrbo’s website users have immediate access to the Reserve Now, Pay Later capability, with deployment to the Vrbo mobile application expected to proceed over the subsequent weeks.
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