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By ActivityPay
Your booking software is quietly eating into your margins, and the math isn't as simple as the sales pitch made it sound.
Most reservation platforms offer two pricing models: pay a percentage fee on every booking, or pay a flat monthly subscription. On paper, the choice seems straightforward. But when you're running a seasonal adventure business that does 80% of revenue in four months, the actual cost difference can swing by thousands of dollars—and not always in the direction you'd expect.
The challenge isn't just picking the cheaper option. It's understanding how each model impacts your cash flow during peak season versus the quiet months, how payment processing fees layer on top of booking fees, and whether you're actually paying twice for the same service.
Fee-per-booking systems charge a percentage of each reservation, typically ranging from 3% to 6% of the booking value. Some platforms charge this to you, others pass it to your customers as a "booking fee."
Here's how it actually works for a rafting company doing $800,000 annually:
The advantage is alignment with revenue. During January when you're doing $8,000 in winter trip bookings, you're only paying $320 to your booking platform instead of a $500 monthly subscription. The system scales naturally with your seasonal rhythm.
The disadvantage shows up in payment processing. Many fee-per-booking platforms bundle their own payment processing, and you're often stuck with their rates—which tend to run higher than what you'd negotiate directly. That 4% booking fee might come with 2.9% + $0.30 payment processing on top, meaning you're actually paying 6.9% plus transaction fees on every booking.
This model works best when your volume is unpredictable or you're just starting out. New zipline operations that might do 50 bookings one month and 500 the next appreciate the flexibility. You're not committed to paying $300/month during a rainy June when bookings crater.
It also makes sense if you pass the booking fee to customers. Many guests expect to see a small booking fee when reserving tours online—it's become standard. If your market tolerates it, you've effectively made the booking software cost-neutral to your business.
Subscription-based booking platforms charge a flat monthly fee regardless of booking volume. Rates typically range from $200 to $800+ per month depending on features, user seats, and transaction limits.
Using the same $800,000 rafting operation:
That's $6,000 less than the fee-per-booking model in this scenario—but only if you control your payment processing rates.
The catch is cash flow timing. You're paying $500 every December, January, and February even when revenue is minimal. For businesses operating on tight margins during off-season, those fixed costs add pressure exactly when you have the least cash coming in.
Here's where it gets complicated: subscription booking platforms usually give you two payment options.
Option 1: Use their integrated payments at their rates (often 2.9% + $0.30 or higher). This is convenient—everything's in one place—but you're likely paying more than necessary. On $800,000 in bookings, an extra 0.4% in processing fees costs you $3,200 annually.
Option 2: Bring your own payment processor with negotiated rates. This requires integration work and you're managing two systems, but you can often secure rates 20-30% lower than the platform's default offering. The catch? Not all subscription platforms allow this, and those that do sometimes charge extra for the privilege.
Both pricing models hide costs that only appear after you're locked in.
Transaction limits: Many subscription plans cap monthly bookings. Process 501 bookings when your plan covers 500? You're either paying overage fees (often $0.50-$1.00 per extra booking) or forced to upgrade to the next tier mid-season.
Feature restrictions: That $300/month subscription might not include gift certificates, multi-day tours, equipment rentals, or group booking tools. Each add-on runs another $50-$150 monthly. Before you know it, your "affordable" subscription is $600/month to get the features you actually need.
Payment holds and reserves: Fee-per-booking platforms processing their own payments often hold funds longer or require reserves during your first year. If your processor holds 10% of revenue in reserve during peak season, that's $64,000 of your money sitting idle when you need it most.
Currency conversion fees: International guests paying in their home currency? Both models typically charge 1-2% for conversion, but subscription platforms sometimes let you negotiate this as part of your payment processing arrangement.
Calculate your break-even point using actual numbers:
For most adventure businesses doing under $500,000 annually, subscription models cost less overall—if you can manage the cash flow during off-season months. Above $500,000, it depends entirely on your payment processing arrangement and whether you can negotiate rates separately.
Before committing to either model, get clear answers:
For adventure businesses with extreme seasonality, the decision often comes down to control versus convenience.
Fee-per-booking offers convenience and natural scaling with revenue, but you're trading long-term cost savings for short-term flexibility. You're also typically locked into their payment processing with limited negotiating power.
Subscription pricing requires more upfront work—negotiating payment processing separately, managing cash flow during quiet months, potentially handling integration between your booking system and payment processor. But you end up with more control and usually lower total costs once you're processing significant volume.
The businesses that win are those that separate booking software decisions from payment processing decisions. Your booking platform should excel at managing reservations, schedules, and customer communication. Your payment processor should excel at moving money efficiently with transparent pricing.
When you bundle everything together for convenience, you're usually paying a premium for that simplicity—a premium that compounds with every booking, every season, every year you grow.
For most adventure businesses doing under $500,000 annually, subscription models generally cost less overall—if you can manage cash flow during off-season. Above $500,000, the better option depends on your payment processing arrangement and whether you can negotiate rates separately from your booking platform.
It depends on the platform. Subscription-based systems often allow you to bring your own payment processor (though some charge extra for this), while fee-per-booking platforms typically bundle payment processing with their service. Always ask specifically about this before committing, as it significantly impacts your total costs.
Common hidden costs include transaction limits with overage fees, feature restrictions requiring paid add-ons ($50-$150/month each), payment holds or reserves (sometimes 10% of revenue), and currency conversion fees (1-2%). These can add thousands to your annual costs beyond the base subscription or booking fee.
Fee-per-booking naturally scales with seasonal revenue, so you pay less during slow months. Subscription pricing requires paying the same amount year-round, creating cash flow pressure during off-season, but typically costs less annually if you have significant volume and can negotiate separate payment processing.
Many customers expect small booking fees when reserving tours online, making this a viable option if your market tolerates it. Passing fees to customers can make fee-per-booking models cost-neutral to your business, though you should consider whether it affects conversion rates in your specific market.