Checkfront’s Booking Fee Model Explained

Having the right pricing structure can make all the difference. At Checkfront, we’ve designed our pricing model to ensure that our goals are aligned with yours – to help your business succeed. This comprehensive guide will explain our booking fee model, its benefits, and how it compares to other options in the market.

Understanding Checkfront’s 3% booking fee model

Checkfront operates on a simple 3% booking fee model. Here’s how it works:

• Fee per booking: We charge a 3% fee on each online booking processed through our platform.
• Flexibility: You can choose to pass this fee on to your guests as a separate charge within the booking invoice or incorporate it into your costs.
• Consistency: The 3% fee applies to all online bookings regardless of value or complexity. 

For example, if you process a $100 booking, you pay Checkfront $3. This straightforward formula makes it easy to incorporate into your pricing strategies and financial planning. As your operations expand and your booking volume increases, you won’t have to upgrade to a more expensive plan or negotiate new terms.

Benefits of Checkfront’s booking fee model

Checkfront’s booking fee model offers a number of compelling benefits that set it apart in the industry. First of all, by adopting a percentage-based approach, we provide seasonal flexibility, allowing your costs to naturally decrease during slower periods. Second, this model aligns our interests with yours, as our success is directly tied to your bookings. In addition, the fixed percentage ensures predictable costs, making it easy to incorporate our fees into your pricing strategy.

How Checkfront compares to other pricing models

In the reservation technology (res-tech) industry, there are two primary pricing models:

1. Subscription pricing: Charges a fixed monthly or annual fee, with no additional transaction fees.
2. Transactional pricing: Does not charge a subscription fee, but has a transaction fee.
3. Hybrid pricing: Combines a monthly subscription fee with a usually low transaction fee.

Checkfront’s 3% booking fee model falls into the transactional pricing category. However, our fee is lower than many competitors who charge up to 6% per transaction.

To illustrate the difference, let’s consider the following scenario:

Scenario: Monthly Revenue of $1,225 (25 Bookings)

System	Hybrid (2% + $49/mo)	Transactional (6%)	Checkfront (3%)
Monthly Revenue	$1,225	$1,225	$1,225
Subscription Fee	$49	$0	$0
Transactional Fee	$24.50	$73.50	$36.75
Payment Gateway Fee (2.9% + $0.30 per transaction)	$42.98	$42.98	$42.98
Total Monthly Cost	$104.28	$104.28	$67.53
% of revenue retained by operator	90.5%	90.5%	93.5%

As you can see, Checkfront’s model allows you to retain a higher percentage of your revenue compared to high-fee transactional models, and it remains competitive with hybrid models as your business grows.

Ready to compare? See how Checkfront booking software compares.

Addressing common concerns

When considering a booking fee model, operators often have several concerns that need to be addressed. Transparency with customers is a common issue, and to address this we offer clear labeling options for the booking fee, allowing you to display it separately or include it in your pricing.

Customers are already accustomed to booking fees from various online platforms and often view them as a standard part of a transaction. Our research shows that when clearly communicated, these fees are generally well accepted by users who understand the value of a secure, efficient booking process. 

Another concern is the impact on pricing strategy. While you have the option to absorb the fee, many companies find success by passing it on to the customer. Our data shows that a small booking fee doesn’t significantly impact conversion rates for most businesses. 

Of course, businesses that handle high-value transactions may wonder if it’s worth paying a percentage fee on their bookings, but in this case, it’s important to consider the value you’re receiving – the ability to securely process large payments, automate communications, and efficiently manage these important reservations. These features can significantly increase your operational efficiency and customer experience, often justifying the fee structure even for large transactions.

Why choose Checkfront’s booking fee model

Checkfront’s 3% booking fee model represents a flexible, scalable, and competitive pricing structure for experience providers. 

We believe our 3% booking fee model strikes the right balance between affordability and comprehensive functionality. We’re committed to building a platform that grows with your business, adapts to your needs, and helps you succeed in the competitive world of bookings.

Ready to see how Checkfront can transform your booking process and drive your business forward? Book a demo with our team today.