Giving your customers the possibility to book and pay online provides multiple advantages. You can use new marketing channels and leverage your turnover through agents and reselling platforms. All this helps you strengthen your business.
Nevertheless, to go online one has to establish certain settings and adapt to certain facts given for e-commerce in general. A good example is the costs for accepting credit card payments. To make a payment by a credit card online, a so called payment service provider is needed to establish a link between the credit card firm, such as VISA or Mastercard, and a particular bank. This payment service provider charges a certain commission to do this transfer. If you want to use payments through PayPal, you will pay for the transaction as well.
The entire online payment market is highly intransparent and depending on the payment service provider and your bank, you will pay from some percent (2-3%) to over 10 percent for accepting online payments. The main influence factors are your payment volume and the currency in which you are accepting payments. Further, you should anyways consider potential currency risks, especially nowadays because there is higher volatility in currency prices.
If you are considering establishing an online booking possibility for your customers, you should evaluate all those costs and calculate them. To facilitate this, we took the freedom to calculate an example.
calculating the standard case
A mid-size tour operator or activity provider company establishes a booking solution with whatever booking-tool on the market. He has to face the following costs:
- Costs for a booking tool charging something between 3 and 10%
- Costs for a payment service provider for his relatively low volume 2-4%
- Eventual costs for his foreigner currency bank account ~1%
He ends up with a total of 6 to 15%, let’s say in average of around 10% commission for his booking and payments. Further, he has to establish several contracts, such as one with a payment service provider. This one especially requires different assessments and takes time and energy.
Compared to this standard procedure, TrekkSoft offers an easy solution, including the payment tool, in its booking engine for only 6 percent commission. This means, that you do your booking and payment just signing up for TrekkSoft and you receive your payouts every week to your bank account.