Reservum & bookings

Online booking commissions: which costs should you actually compare?

A commission is only one part of the cost of selling online. Separate software charges, distribution, payment processing and operating work before comparing booking proposals.

Editorial illustration · not a client result or software screenshot.

Two booking proposals can use the word “commission” and mean different things. One may charge for distributing an experience to a marketplace audience. Another may charge for the booking software. A payment provider may apply a separate processing fee. Comparing only the headline percentage can therefore produce the wrong conclusion. Start by identifying what each charge buys and when it applies, then compare the full cost of receiving and managing a booking.

1. Separate software, distribution and payment processing

A software charge pays for access to a booking tool or its implementation. Depending on the agreement, it might be fixed, recurring, linked to usage or attached to transactions. A distribution charge concerns access to a sales channel, such as a marketplace that introduces customers to an activity. Payment processing is another service, governed by the chosen provider and payment method.

These charges can coexist. A direct booking on your own website may still involve payment processing, hosting and software support. Likewise, a marketplace commission may or may not include particular payment services. Read the contractual definitions rather than assuming that one visible charge includes everything else. Ask how refunds, cancellations and disputed payments affect each type of fee.

2. Compare the same booking scenario

Build a neutral example using your own expected operation. Use the same activity value, booking volume, payment method and cancellation assumptions for each proposal. Do not compare a seasonal business under a quiet-month scenario for one supplier and a busy-month scenario for another.

A useful worksheet separates fixed costs from variable costs. Its basic structure is: implementation allocated over a chosen period, plus recurring software and hosting, plus distribution and payment costs, plus operating work. This is a planning method, not a price estimate. If a charge is unknown, mark it as unknown rather than replacing it with a convenient assumption. Include taxes where relevant to your own comparison, with appropriate professional advice when needed.

3. Include the work that happens around the booking

Cost also appears as staff time. Someone may need to copy bookings into another record, answer avoidable questions, reconcile payments or correct activity details in several places. These tasks are easy to overlook because they do not appear on a software invoice.

For a hypothetical walking-tour operator, a cheaper booking arrangement might require a manual check before every confirmation. An alternative might have a higher fixed cost but a different operating process. Neither is automatically better. Record who performs each task and how often it occurs, using your own evidence. Do not turn an unmeasured expectation of time saved into a claimed financial result.

4. Understand what “no software commission” means

An offer with no software commission per booking removes that particular charge. It does not remove every cost involved in selling online. Check implementation, licensing, updates, support and any services required to keep the website operating.

When considering Reservum, ask for the commercial terms and a list of external costs that remain separate. A payment gateway can have its own fees; hosting and email services can have their own limits or subscriptions. Do not interpret a test payment as evidence of live payment availability. The proposal should make both the charging model and the implementation status clear, so the customer is comparing an actual scope rather than a slogan.

5. Consider control and exit conditions

The total commitment includes the cost of changing arrangements later. Ask what data can be exported, which formats are provided and which parts of the website remain yours. Establish who owns the domain and hosting account, who holds administrator access and how a handover would work.

Also ask what happens when a subscription or support agreement ends. Does software access stop, do updates stop or does only the service relationship end? Those are different outcomes. Avoid vague answers such as “everything is yours” when the proposal depends on third-party licenses or hosted services. A written distinction between the website, software license, operational data and support makes future decisions easier.

6. Choose a model that matches your sales strategy

A marketplace may be valuable when it introduces customers you would otherwise struggle to reach. A direct channel may be valuable when customers already seek out your business and want a straightforward way to book. Evaluate both the acquisition role and the operating cost. Removing a commission is not automatically a saving if it also removes a useful source of demand without a replacement plan.

Compare a realistic year of activity and review the assumptions when the business changes. Keep the commercial discussion separate from claims about guaranteed bookings or revenue. If you want a clear project scope, explore combined website and booking solutions or request an itemised proposal. A useful proposal makes each cost understandable before asking you to commit.