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Airbnb has introduced the ability to split your payments for a stay. The new system, called “Pay Less Upfront”, came into effect as of January 15, 2018. According to the Airbnb press release, the functionality comes in response to the fact that 40% of its customers opted to use this option in testing. Most of those who opted for a split payment also opted to take up higher priced bookings when making a split payment.
Pay Less Upfront Key Features
- Pay Less Upfront is only available for bookings of more than $250
- Pay Less Upfront is only available on bookings made at least 14 days in advance
- In most cases, the initial payment is a 50% deposit
- The balance will be charged just prior to the stay
- Airbnb will notify you 3 days prior to the balance of payment being charged
Our Take
At first glance we love this, especially given how many friends and groups we know that use Airbnb when traveling. However, keep in mind that Airbnb has self-admitted that allowing split payment has increased potential revenue with many people opting for a more expensive rental.
That isn't a bad thing, but just remember that this isn't 100% altruistic — it is a smart business decision. Remember, odd pricing came into effect when stores realized that one of the aspects of human psychology was that charging an odd price ($9.95 or $9.99 instead of $10.00) led to people buying more of the product. So, while you will benefit from convenience thanks to this new payment method, Airbnb wins as well.
Source: Live from A Lounge
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Really like this new feature – that was always a downside for using airBNB and booking in advance.
Really like this option!
Down to split the payments on my card, but not split them with friends. I want all the points 🙂
LOL 🙂
This will come in handy for sure.
I like this option. My daughter frequently uses this and now it will be easier to split payments between her friends when traveling.
Didn’t cost more for me so why not pay late!
I like it – not a huge amount in one step, but divided into two – thats a good thing!
Used this feature and worked perfectly.
Cool, I can definitely see us taking advantage of this feature.
This is quite interesting and seems like a really clever idea by Airbnb to increase revenue.
I like this move.
As long as I make financially sound decisions, I don’t care AirBnB gains with it. Nice option!
Thanks, sounds like a net positive!
This does seem like a good idea. Is the option available even if you go through the Delta- AirBNB link?
Yes, it is!
I wonder how much of an uptick they will see in bookings now? It is very smart to give extra options to buy. It opens them up to a broader audience and a lot of people like to possibly charge half on a certain credit card and the other half on another one.
I still cannot bring myself to use AirBnB. It’s someones house, etc. I feel like I’m intruding. Oh well, maybe one day.
Thanks for the info
OK feature, but I doubt I’d use it if it costs more than paying upfront.
But it doesn’t cost more!
Made a reservation last week for a long term stay and tried to use their feature that splits up the payment between hte guests – wasn’t allowed even thought the terms never said so. Wonder if this feature if available for long term stays?
We used it on a 3 night-stay, so it definitely doesn’t seem like long-term is required.
This post wasn’t on the website yesterday (1/21) but now shows up with date 1/20. Time Travel, is it? 😉
Time travel is fun!
very helpful option
It should be pay less upfront , pay more later . But if it works for someone that is good ,sometimes I can see the benefit that you don’t have all the money upfront
Smart. Very smart.
I think this is a very helpful option… I am still reluctant to go this route, Airbbb vs regular hotel chains as i like to get points, but one day i might need something more rural or if my hotel of choice isn’t available.
Another option to take into account.
Especially that sometimes I see listed in Airbnb also some regular hotels. Small ones of course.
I see this as a positive move which gives much more flexibility to those who don’t always have cash sitting in the bank. So a big thumbs up from me.