This week’s roundup covers Airbnb’s global rollout of Reserve Now, Pay Later, a new World Cup host incentive, Vrbo’s new optional weather guarantee, Airbnb’s strong Q4 performance, and an Arizona bill that could expand local authority over short-term rentals. Let’s dive in.
Airbnb announced that its Reserve Now, Pay Later option is now available worldwide for eligible listings. Originally introduced in the summer of 2025 for U.S. travelers booking domestic stays, the feature allows guests to secure a reservation without paying anything upfront and pay later, shortly before the end of a listing’s free cancellation period. The program applies to listings with flexible or moderate cancellation policies and is designed to offer more flexibility for travelers while helping improve booking conversions for hosts. Airbnb says the feature saw a 70 percent adoption rate in Q4 of last year and hopes it will encourage more guests, including those traveling for major international events this year, to lock in stays earlier.
As part of Airbnb’s continued push to promote World Cup travel and help fill an expected lodging shortage in host cities, Airbnb is offering a new incentive aimed at bringing more hosts onto the platform. New hosts who list an entire home in one of the 16 World Cup host cities across the U.S., Canada, and Mexico and complete their first stay by July 31st, 2026 can earn a $750 bonus on top of their regular booking income. Airbnb says demand for stays in host cities is already rising, and the program creates a strong opportunity for new hosts looking to enter the vacation rental space.
Vrbo announced a partnership with WeatherPromise to introduce an optional weather guarantee for select bookings. U.S. travelers will now see the option to add WeatherPromise to certain reservations during the booking process. The add-on provides a refund if severe weather significantly disrupts a stay, including events such as hurricanes, wildfires, or major snowstorms. WeatherPromise monitors conditions at the destination, and if rainfall or other covered weather exceeds the set thresholds, eligible guests are automatically refunded without needing to file a claim. Vrbo says the feature is designed to give travelers more confidence when booking during unpredictable weather seasons, while also helping hosts protect bookings and reduce weather-related cancellations.
Airbnb released its fourth-quarter 2025 financial results, reporting positive growth to close out the year. The company posted approximately $2.78 billion in revenue, up about 12 percent year over year, while gross booking value reached roughly $20.4 billion, an increase of around 16 percent compared with Q4 2024. Airbnb also reported that nights and seats booked grew about 10 percent year over year, marking its strongest quarterly booking growth in more than two years. Airbnb pointed to continued expansion into newer global markets, such as India, Brazil, and Japan, as key drivers of performance. The company also highlighted increased use of AI across its platform, noting that roughly one-third of customer support issues are now resolved without the need for a live agent. Airbnb says it hopes to carry this positive momentum into the new year through continued investment in AI, further expansion into new markets, and an increased focus on hotel stays.
Previously reported in Industry News on February 6th, an Arizona state bill aimed at giving local governments more authority to regulate the vacation rental industry passed the House Commerce Committee on Wednesday. House Bill 2429 would establish new occupancy standards, allow for license or permit suspensions, and add further requirements such as background checks for operators. The bill now heads to the full Arizona House for a vote.
As listing sites continue to roll out new booking tools and lawmakers revisit short-term rental policies, the vacation rental landscape continues to evolve. Check back next week for the latest news.