Starting with Minimal Margins
When we launched GlobalAssist in Madagascar, we began with a minimal margin of just 10%. The goal wasn't to make money right away, but to establish ourselves in the market. This modest margin allowed us to cover Stripe's 4% payment fees, an additional 1% for mobile money transactions, and roughly 5% for operating costs—primarily for our booking managers and digital infrastructure.
Gradual Increases as Service Expanded
As our service improved and our offerings grew, we gradually increased our margin in two or three steps. Today, we operate with an industry-standard margin, similar to platforms like TripAdvisor, Viator, and GetYourGuide. Despite that, our prices are still significantly lower in most cases compared to these big players.
How We Keep Prices Low
There are a few reasons why our prices remain lower: maybe our competitors charge higher margins than we assume, or they simply pay higher purchase prices—or both. At GlobalAssist, we always buy at the local rate. We work directly with thousands of providers in each country. For every service, we typically get quotes from over 10 suppliers and always book the most affordable option for the same quality. If two offers are comparable, we choose the lower-priced one—because our customers value a great deal.
Our Pricing Model Explained
Our pricing is built on two things: the best possible supplier prices and a fair, industry-standard service margin. However, we realized that our model needed some fine-tuning—especially for very small or very large bookings.
Minimum Fee for Tiny Bookings
What happens when someone books something worth just €1? With Stripe's minimum fees and our fixed costs, we would actually lose money. That's why we've introduced a minimum booking fee—to ensure that even the smallest transactions at least cover our operational costs.
Discounts for Large Bookings
On the other end of the spectrum, we noticed a challenge with large bookings: customers often expect discounts, but our pricing model was fixed—purchase price plus margin. Inspired by AirBnB’s volume discounts, we’ve now introduced the following:
- 5% discount for bookings over €500
- 10% discount for bookings over €1,000
Even though these big bookings may no longer cover their full share of our fixed costs (like platform maintenance and staff salaries), they still contribute more in absolute terms than a small pizza delivery—and we're happy to reward that.
Introducing Our €5 Coupon
We've also launched a small, symbolic €5 coupon. It's not much, but it allows us to say thank you—whether it's for a kind customer who left a Google review or a way to apologize if something didn’t go perfectly (like a driver arriving late). Our business is a people business, and our booking managers appreciate the chance to express gratitude.
Why Not Charge More?
You might ask: if we're better than major platforms—offering more personalized service, free customization, and ongoing live support—shouldn't we charge more? Maybe. But while other platforms showcase glossy photos and slick branding, we focus on real service and honest pricing.
Our Mission: Better Service, Better Prices
We’re proud to offer better value at lower prices. This approach helps us fulfill our mission in Madagascar, Tanzania, and soon Kenya—bringing meaningful travel experiences and improving lives in developing countries. For now, we’re keeping our pricing structure: competitive rates for customers, fair compensation for providers, and a sustainable model for us.
