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The rental economy

What each channel takes, and what it keeps

Every channel that brings you a booking charges for it twice. Once as commission, and once as the customer record you do not get to keep.

3 min readAll posts
  • Largest bike rental fleet on Hilton Head IslandBodhisys runs the reservations, routing and returns behind it.
  • Running live rental operations since 2023Every peak season since has been taken on the platform.
  • Every capability includedNo feature tiers and no paid modules holding anything back.

Stack the percentages properly

Most operators can name their platform fee and stop there. The all-in number is the one worth comparing, and it is built from several layers that arrive from different places.

A platform advertising a 6% booking fee also bills roughly 3% in card processing, because it runs the payments and sets that rate, so it is around 9% all in. At 8% on the guest the same shape comes to about 11%. Reseller commission sits on top of that where it applies, and a channel fee can sit on top of the reseller.

Bodhisys adds 4.5% at checkout, paid by your customer, and bills nothing else. You keep your own processor and pay them directly at the rate you negotiated. The calculator puts your own volume against both shapes.

Your volume

In season.
Before any booking fee.
$
Starting assumptions, editable in the full calculator.
You would keep$30Ka year, on $702,000 of gross bookings, moving from FareHarbor to Bodhisys. 9.0% effective take against 4.5%.
Bodhisys4.5%
FareHarbor9.0%
  • $21,060platform charges you stop paying
  • +66bookings from a cheaper checkout, worth $9,239 in margin

6% of that is added to your guest’s checkout. The other 3% is card processing, billed by the platform that runs the payments. With Bodhisys you keep your own processor and pay them directly, so the only rate beside our name is the one at checkout.

Open the full calculator

Cash you stop paying, plus what a cheaper total at checkout does to your booking count. The full calculator takes your margin, your season length and your own contract.

The cost that never appears on an invoice

A commission is a known number. The customer record is the one that gets given away without a line item.

A guest who books through your own site arrives with an email address, a phone number, a history of what they rented and a reason to come back to you directly next summer. The same guest arriving through a reseller may reach you as a booking reference and a first name.

The compounding difference is the whole game in a seasonal market where the same families return. One channel builds an asset each year and the other rents you a transaction and keeps the relationship.

Channels are not interchangeable

A booking that would have happened anyway, arriving through a channel that charges 20%, is a pure loss of margin. A booking that would never have found you is worth its commission and possibly more.

Almost nobody separates the two, because doing it requires knowing which guests are repeat and which are new, which requires the customer record you just gave away. The measurement problem and the cost are the same problem.

The practical version: track the share of bookings that come direct, watch it by season rather than by week, and treat a falling direct share as a cost increase even when the commission rate has not moved.

Getting direct bookings is a plumbing problem first

Direct booking is usually framed as a marketing question. Before that it is a question of whether your own booking path works well enough that somebody who found you chooses to finish there.

Live availability that is correct, a price that includes what will be charged, a document step that happens before arrival, and a confirmation that answers the four questions a guest would otherwise phone about. Online booking covers that path, and the hosted site option exists where the website itself is the weak link.

A cheaper total at checkout helps too, which is what a lower take rate buys you. Against a platform at about 9% all in, the difference at 4.5% is a point and a half off what the guest pays, which is the sort of thing a guest comparing two tabs notices.

One $225 reservation at checkout

Guest sees

  • 4 bikes, 7 days$225.00
  • Booking fee 4.5%$10.13

Guest pays$235.13

You receive

  • List price$225.00
  • Reseller commission$0.00
  • Paid modules and seats$0.00

Payout$225.00

The fee is added at checkout and paid by your customer, so the payout is your list price. Cancellation protection and the helmet pack are sold from real stock and settle the same way.

Card processing sits outside this on every platform, billed by your processor at their published rate.

Where distribution is worth paying for

Cold markets, new locations, shoulder weeks you cannot fill, and categories where a first-time visitor has no way to find you. In all of those a commission is buying demand that does not exist otherwise.

The mistake is paying that price for demand you already had, season after season, because the channel sits between you and a customer who knows your name.

Said plainly

Bodhisys brings no distribution. There is no OTA channel and no marketplace, so nothing here fills a shoulder week for you.

What it does is make the direct path good enough to be worth choosing, and keep the guest record on your side of the line. If your volume depends on resellers, an incumbent with real distribution is the better buy and you should hear that before a migration rather than after one.

What does a booking channel cost a rental operator?

The commission plus the card processing the channel sets, plus any reseller or channel fee layered on top. A platform advertising 6% to the guest with about 3% processing on the operator is around 9% all in, and at 8% on the guest it is about 11%.

The larger cost is the customer record. A guest arriving through a reseller may reach you as a booking reference rather than as an email address and a rental history, which removes the repeat business a seasonal market is built on. Bodhisys adds 4.5% at checkout paid by the customer and brings no distribution of its own.

Questions

How do we work out our all-in take rate?

Add the guest-facing fee, the card processing the platform bills you, and any reseller commission and channel fees on the bookings they apply to. The savings calculator does it against your own units, reservations and order value.

Are reseller bookings worth the commission?

A booking that would not otherwise have found you is worth it. A booking that would have come direct is a straight loss of margin, and telling the two apart needs a customer record you still own.

Does Bodhisys take a commission on bookings we already had?

The 4.5% applies to each reservation and is added at checkout for your customer to pay, whatever the source. There is no separate commission, no channel fee and no monthly fee.

If this is your operation

A demo takes six fields and someone who understands rental operations calls you back. Where Bodhisys is the wrong fit you will hear it on that call rather than after three meetings.