Are Reservation Fees Bad For Business?

Consumers have grown accustomed to paying them and they hardly ever complain, right?

On the other hand, passing along fees may actually be harming your overall success and reputation.  Surveys are showing that while consumers may not complain, many are just simply leaving—as high as 2/3 of shopping cart abandonment is due to extra fees.

Extra fees are by far the leading reason that consumer leave without completing a purchase.  You’ve likely experienced this yourself. You find an item you want to buy and start to purchase.  As you move along the checkout process, you’re presented with additional fees and charges that weren’t clearly listed.  Now, you probably don’t just leave, you leave angry and frustrated.  While some of those will call you to make the booking to simply avoid the reservation fee, others will abandon and simply make a booking with someone else.

Abandoned reservations are a major challenge in business.  You have done all the marketing and promotion; the consumer has researched your product and picked out the specifics of what they want including the activity, date, and time.  You have made a significant investment in getting the potential customer to this point, and the customer has made a significant commitment to you with their time, research, and choices.  The last thing you want to do is lose the customer when you get them to this final check out point.  Bottom line is reservation fees being charged to your customers is something to carefully consider.  If you are losing a significant percent of your business because of them – like many others are – you may want to consider another path.