Direct vs Platform Bookings: A Profitability Comparison (UK Wedding Car Hire)
Every confirmed wedding booking has a customer acquisition cost. The real question is not whether cost exists — it is whether that cost is predictable, scalable, and margin-protected.
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Operator snapshot
In one sentence: Platform fees are not margin killers — they are variable acquisition costs. If your direct CAC is poorly measured, platform often wins more often than operators assume.
- All bookings carry acquisition cost — direct just hides it.
- TWCHP deducts 15% of supplier gross (S), not 18.5%.
- The 3.5% uplift is added to the customer price, not deducted from supplier.
- If you want £450 net retained, supplier gross must be £529.
- Direct CAC must include ads, time, tools, and non-converting enquiries.
- Strong operators use both channels to stabilise utilisation.
Understanding the TWCHP Fee Model (Correctly)
You provide your supplier gross price. That is the pricing anchor.
3.5% uplift applied to customer-facing price only.
15% platform fee (12.5% + VAT) deducted from supplier gross.
Worked Example (Target Net £450)
| Item | Amount |
|---|---|
| Target net (N) | £450 |
| Supplier gross (S = N ÷ 0.85) | £529 |
| Platform fee (15%) | £79 |
| Supplier net retained | £450 |
| Customer price shown (S × 1.035) | £548 |
Direct vs Platform: What Operators Underestimate
Direct
- Paid ads cost money before conversion.
- Time spent quoting has opportunity cost.
- Card fees still apply.
- Website, hosting, tracking tools add up.
Platform
- Cost only when booking confirmed.
- Trust signals lift conversion rate.
- Structured workflow reduces friction.
- Policy consistency reduces disputes.
Strategic Conclusion
Platforms are variable acquisition channels. They convert marketing uncertainty into predictable percentage cost.
Strong operators do not choose “either/or”. They use platforms to stabilise occupancy and direct channels to protect brand equity.
The goal is to control your true cost per confirmed booking.
For serious operators
If your utilisation fluctuates, your margin is unstable. Platform demand can smooth seasonality while protecting net retained — if priced correctly.