The True Cost of Booking Commission for Leisure Venues

A small percentage can become a large annual cost

Booking commission is easy to overlook when it is presented as a percentage of each transaction. The amount attached to one party or admission booking may appear modest, but the annual total can become substantial as the venue grows.

For a leisure operator, that money could otherwise support staff training, equipment, maintenance, customer acquisition or improvements to the guest experience. The right question is therefore not simply whether a platform is affordable today. It is how the cost changes when booking volume and average order value increase.

A clear comparison should include every software, transaction, support and development cost rather than focusing on one attractive headline figure.

Calculate the annual impact using your own numbers

Begin with the venue's total online booking value for a representative year. Multiply that value by the commission percentage, then add any fixed transaction charge. Separate standard payment-processing costs because these may still apply with a commission-free platform.

For example, €400,000 of bookings subject to a 4% platform commission would produce €16,000 in commission before any additional fixed charges. At €750,000, the same percentage would produce €30,000. These examples are illustrations, not quotations, but they show why percentage pricing deserves close attention.

Repeat the calculation using a realistic growth forecast. A platform that becomes progressively more expensive as the business succeeds can restrict the budget available for further growth.

Distinguish platform commission from payment processing

Commission-free does not mean that accepting card payments has no cost. Payment providers normally charge for processing transactions, and rates depend on the provider, card type, location and commercial agreement.

Ask suppliers to separate platform commission, payment processing, subscriptions, setup, support and optional development. This produces a fair comparison and prevents two different types of charge being grouped together.

MBM Ireland's custom booking software carries 0% booking commission from MBM. Agreed implementation, hosting, support and third-party payment-processing costs can still apply and should be set out transparently before a project begins.

Consider control as well as cost

The commercial value of a booking system extends beyond transaction fees. Operators should understand who controls customer data, how it can be exported, which integrations are available and what happens if the business later changes provider.

Access to accurate booking information can improve staffing, capacity planning, email marketing and customer service. A restrictive system may make ordinary reporting or operational changes unnecessarily difficult.

Ownership should be supported by practical access, appropriate security and clear responsibilities. Customer information must always be handled lawfully and only used in line with recorded permissions.

Look at the complete customer journey

A low-cost platform can still lose revenue if the journey is confusing. Customers should move naturally from the venue website to availability, options, add-ons and payment without feeling that they have entered an unrelated system.

Check the experience on a mobile phone. Review the number of steps, form fields, loading time, fee disclosure and error handling. Make sure a customer can understand deposits, remaining balances, cancellation terms and arrival information before confirming.

Conversion matters because a reduction in abandonment can be worth more than a small difference in monthly software fees. Cost and customer experience must be assessed together.

Ask what is included in ongoing support

Booking technology is part of daily operations, so support arrangements matter. Confirm response routes, typical service hours, update responsibilities, backups, security maintenance and how urgent problems are prioritised.

Also ask how product changes are handled. A venue may add a new activity, location, party package or capacity rule. A rigid system can turn an ordinary operational change into a costly workaround.

Custom software should still have a controlled scope. Document the venue's booking rules properly, agree what is included and understand the cost of future development before signing.

Compare the total cost over three years

A useful procurement exercise compares each option over at least three years. Include setup, migration, subscription, commission, payment processing, integrations, support and likely development.

Then add qualitative factors such as customer experience, data access, reporting, flexibility and supplier responsiveness. The cheapest first-year figure is not automatically the best commercial decision.

Use conservative, expected and growth scenarios. This shows how each pricing model behaves if the venue has a difficult year, meets its target or expands more quickly than planned.

Turn saved commission into visible growth

Removing platform commission should have a purpose. Decide how the retained margin will be used, whether for SEO, paid media, staff development, equipment, loyalty activity or a stronger website journey.

Measure the outcome rather than treating a technology change as complete on launch day. Track booking completion, average order value, support enquiries, repeat visits and the annual cost of running the platform.

Myk Baxter Marketing Ireland helps PALI members assess their current booking costs and customer journey. Review the commission-free booking software, explore our custom websites or complete the PALI questionnaire to request a free review and demonstration.