It’s a question our clients often ask: Do we use a third-party ticketing, booking or reservation tool or should we build our own? At Flow, we’ve been supporting both options for the past 12 years, and there are pros and cons to each approach.
Third-party tools
We’ve worked with some great third-party ticketing and reservation partners over the years, for example Eventbrite.
What you get from a third-party provider is an all-in-one solution generated from boilerplate code that can be generally applied to different businesses and models. This is often referred to as “software as a service”, as you pay a monthly subscription to rent the ticketing software. There is also often a commission per ticket sold. For instance, Shopify, a hosted ecommerce service, charges between $29 and $299 per month and has a 0% to 2% transaction fee depending on the plan taken.
While there are certain customisations that can be made per client, the flexibility of the system is limited, because the provider can’t build bespoke solutions individually for each client.
Often the provider will offer some form of customisation (for example, adding a logo or changing the colours to match your brand), but the page still looks like someone else’s website. This may dissuade users who want a seamless, direct buying experience, rather than registering on yet another website.
Although it often appears cost effective at first, brands should look at the long-term costs of subscriptions and commissions associated with the service.
Pros:
- Often, there’s a lower capital cost than with bespoke systems
- Quick set-up – you can often be up and running in less than a week
Cons:
- Limited integration options
- Off-site payments
- Ongoing fees
- Intellectual property is held by the third party
Bespoke systems
Flow has developed a number of bespoke ticketing systems for clients looking for deeper integration into their business systems and processes. Such clients include City Sightseeing and the Two Oceans Aquarium.
When we build bespoke systems, we integrate into existing accounting packages, point-of-sale and barcode systems, membership tools, websites and ticketing machines.
This often involves detailed planning and business analysis and several months of development using a multidisciplinary development team.
The results, though, are incredibly rewarding, within increased year-on-year growth attributable to the seamless user experience offered and growing customer acceptance of online purchasing.
The web user experience is not only about buying the ticket or making the reservation; it’s about the personal experience of the customer through the full lifecycle, from purchase to experience and reflection.
When a customer can purchase a ticket online, walk seamlessly through the barcode scanner at the front of house, and then automatically receive a customer-satisfaction survey via email, we know we’ve contributed to a success story.
Pros:
- Deep integration into existing databases and business processes
- On-site payments and no brand equity lost
- Ongoing costs are significantly lower
- Intellectual property is yours
Cons:
- Larger capital cost than third-party ticketing
- Intensive development, which requires time investment by the client
Conclusion
For small start-ups, a third-party system may be the answer – but once your operation grows up, consider a custom-built ticketing system that integrates into the financial, marketing and online spheres of your business. The statistics show this can accelerate market acceptance and deepen your business intelligence.
