Payments Innovation

Airbnb Tests New Early Payout Feature

Airbnb

With a new experimental feature, Airbnb hosts will be able to get a partial payment soon after a guest makes a booking. But as of now, Airbnb is only testing the feature and it is not permanent, according to reports.

While hosts on the site are normally paid one day after their guests check in, the new option allows for a much quicker payment. Invited hosts will now receive half of their payment three days after a guest makes a reservation. The host will receive the other half a day after the guest checks in. With the service, Airbnb will charge hosts 1 percent of the booking’s subtotal.

In the event that a booking is cancelled, the payment is taken off the host’s next reservation. While reports indicate that the experiment is designed for professional hosts, the feature is becoming available by invitation only to regular hosts as well as pros.

The news comes as Airbnb wants to put more than a bed and breakfast-style stay at customers’ fingertips. The homesharing platform has branched out this year, endeavoring to help customers find not just a home away from home for the day, week or month, but a vacation experience worthy of posting on Instagram.

Announced in February, Airbnb is rolling out a Plus-tier offering aimed at higher-end customers. Homes listed under this tier have been inspected against a checklist and are verified to offer “quality and comfort.” The company also announced its luxury Beyond tier, which offers fully constructed trips that include hospitality and custom experiences.

The Plus and Beyond tiers target consumers such as business travelers, who may be accustomed to a higher class of accommodations, may have amassed a large number of reward points and/or may be working with a bigger travel budget.

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