We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Accounting

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is a Booking Fee?

Tricia Christensen
By
Updated: May 16, 2024
Views: 49,781
Share

A booking fee relates to the common practice of charging extra money when you’re booking a vacation, buying tickets for a concert or show, or even buying an airline ticket. Not all hotels charge a booking fee, particularly if you book online, but many cruise ships do, and numerous travel agencies, including many online ones, may add a booking fee when you buy tickets, vacation packages or reserve hotel rooms. Most ticketing agencies charge booking fees for obtaining tickets to events, plays and concerts, which can usually only be avoided by buying tickets at the door of such an event. Yet, you usually can’t get same day tickets if an event is popular, so people are willing to pay the extra fees.

Some booking fees aren’t terribly expensive. You might spend $10-20 US Dollars (USD) to pay a booking fee on a flight. Other companies charge booking fees that represent a percentage of the total cost. However in recent years, people in the UK have been shocked to find that such fees for buying tickets to a show can be as high as 25% of the total cost, and many have called for greater disclosure about such fees. Additionally, online travel agencies that advertise lower prices if you book with them may not be such good deals if an extra fee is charged. Often it’s less expensive to make reservations directly with the hotel if they don’t charge these fees.

Most companies will tell you upfront if they charge a booking fee, and it should be recognized that many companies like travel and ticketing agencies make most of their money through these fees. There are questions as to whether price gouging occurs and whether these fees are too high. Several business magazines and news reports suggest these fees are on the rise. On the other hand, it’s hard to begrudge a travel agency for charging a small booking fee if they’ve spent several hours helping you arrange a vacation.

Yet when a ticket for a show costs about $100 USD, and it takes you three or four minutes to buy one, charging a $25 USD booking fee does seem somewhat high. Similarly, being charged to book flights or hotel rooms through the airline or hotel chain you’re going to be using is hard to justify. You’re already paying the hotel or airline to use their services, and many people argue that buying a ticket or reserving a room shouldn’t cost you extra money. Some companies like JetBlue® will only charge a booking fee if you talk to someone on the phone to book your flight. If you order from the Internet there isn’t an extra charge.

To save a little money when you travel or purchase tickets, look for agencies or companies that offer low or no booking fees, and compare costs between agencies that propose they’ll save you money and the costs of calling up hotels and making your own reservations. You might also save money on travel expenses if you have membership in travel companies like AAA® (American Automobile Association), although such companies do charge for membership. Additionally, you should be sure to ask about any fees upfront. If a company won’t give you complete disclosure on what they charge, find another company that will, and that offers either low booking fees or waives these fees.

When purchasing concert tickets, you’re pretty much stuck with whatever fees a ticketing agency wants to charge. Often ticketing agencies have exclusive rights to sell tickets for certain events. Usually your only options are paying the extra charges, forgoing the event, or hoping you can win tickets from a contest on a local TV or radio show so you can attend the event for free.

Share
SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Tricia Christensen
By Tricia Christensen
With a Literature degree from Sonoma State University and years of experience as a SmartCapitalMind contributor, Tricia Christensen is based in Northern California and brings a wealth of knowledge and passion to her writing. Her wide-ranging interests include reading, writing, medicine, art, film, history, politics, ethics, and religion, all of which she incorporates into her informative articles. Tricia is currently working on her first novel.
Discussion Comments
By DentalFloss — On May 14, 2011

Sometimes it is hard to buy tickets without booking fees, especially in advance; I started planning a trip to New York City, and tickets to the show I want to see while there are 30 dollars, plus a fee 7.50/person using the online system. While not high prices, it seems like a large percentage price. However, I suppose it does ensure quick service, selection, and convenience in general.

By Catapult — On May 12, 2011

I hate paying booking fees. Yes, I understand the point, they just often seem excessive to me. I recently traveled to Florence, and my friend convinced me to reserve tickets to the Uffizi and to the Academy- With the fees, it was 18 euro to see the statue of David; the walk-in price was 6. The Uffizi price was more, making the reserve fee less ridiculous in comparison, but still- excessive. I will try to travel without booking fees whenever possible from now on.

Tricia Christensen
Tricia Christensen
With a Literature degree from Sonoma State University and years of experience as a SmartCapitalMind contributor, Tricia...
Learn more
Share
https://www.smartcapitalmind.com/what-is-a-booking-fee.htm
Copy this link
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.