Some organisations choose to show a clear booking fee, while others prefer to fold those costs into their prices. Both approaches are supported by Hivelink — and both have their advantages.

So how do you decide which route is right for your business?

What the research tells us

Pricing isn’t just about numbers — it’s about psychology and trust.

A 2023 Ipsos study on payment surcharges found that when businesses itemised additional fees at checkout, they experienced an average 10% drop in transaction volume as some customers changed their purchasing behaviour.¹

At the same time, research from the University of Pennsylvania’s Wharton School into “partitioned pricing” — where costs are split into a base price and extra fees — found that transparency is key.² When fees are clearly displayed and explained (rather than revealed late in the process), customers are more accepting, perceiving them as part of a fair and open transaction rather than a hidden cost.

Similarly, a Federal Reserve Bank paper on payment surcharges observed that while explicit fees may discourage impulse purchases, they also create space for merchants to signal honesty — provided those fees represent genuine cost recovery, not extra margin.³

Closer to home, the UK’s Competition and Markets Authority (CMA) has repeatedly highlighted “drip pricing” — where unavoidable fees are revealed late in the checkout process — as a driver of consumer frustration and distrust.⁴ Transparency, the CMA says, isn’t just ethical; it’s good business.

How Hivelink handles booking fees

Within Hivelink, the booking fee decision is entirely yours. The system allows you to decide whether to Charge a booking fee at all, and If Yes, select how to apply it:

  • Exact Platform + payment processing fees combined

  • A custom % of each booking’s value

  • A fixed £ amount per booking

Importantly, Hivelink calculates and displays the booking fee in real time as customers build their order — meaning there are no hidden extras and no unpleasant surprises at checkout.

Passing fees on: the transparent route

Many providers choose to show a booking fee line-item because it clearly separates service costs from the value of the activity itself.

Advantages
  • Transparency and clarity – Customers see exactly what they’re paying for.

  • Cost recovery – You maintain full visibility of your platform and transaction costs without adjusting your core pricing.

  • Stable margins – Fee income flexes with booking volume, protecting profitability during busy periods.

Considerations
  • Customer perception – Studies suggest some buyers view surcharges negatively unless they are clearly justified. Ipsos found customers were more accepting of fees described as “payment processing” than generic “service charges”.

  • Competitive context – If competitors advertise all-in pricing, your listed prices may appear higher on first glance.

  • Price sensitivity – In sectors where families compare multiple providers side-by-side, visible fees can influence perception.

The takeaway? Charging a booking fee works best when customers already trust your brand and when you can frame the fee as a genuine cost recovery, not an add-on.

Absorbing fees: the all-in approach

Bundling platform and processing costs into your base prices can create a simpler, cleaner experience.

Advantages
  • Cleaner presentation – A single price is easier for customers to understand and compare.

  • Higher perceived fairness – Especially among new or price-sensitive customers, an all-inclusive price avoids any chance of being compared to a certain budget airline!

  • Improved conversion – Research into consumer decision-making by the UK’s Behavioural Insights Team suggests buyers are more likely to complete purchases when all costs are visible upfront.

Considerations
  • Reduced flexibility – Once absorbed, it’s harder to adapt quickly to fee structure changes.

  • Margin pressure – You either raise prices or accept a smaller net return per booking.

  • Less visibility on cost drivers – When reviewing your performance, separating service costs from base pricing may require more internal analysis.

Bundling works best when simplicity and trust outweigh fine-grained cost recovery — especially for providers serving first-time customers or marketing to wider audiences.

Which is right for your business?

Choosing between the two approaches often comes down to your audience, brand position, and the value of transparency within your pricing story.

Here’s a quick decision guide to help you weigh your options:

  

Finding your balance

There’s no universal right answer — only what fits your business model and your customers’ expectations.

What matters most is that your pricing feels fair and transparent. Research consistently shows that customers accept fees when they understand why they exist and see them presented clearly.

With Hivelink, you have full flexibility to choose — and to adjust if your strategy changes. Whether you prefer to pass fees on or absorb them, the system ensures they’re calculated accurately and displayed openly, helping you maintain trust with every transaction.

The key is deciding whether your customers prefer to see the detail — or the simplicity.

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