For many organizations, one of the biggest driving factors behind the shift to hybrid work is the ability to shed commercial real estate costs. But did you know that beyond the ability to cut costs, there’s also an opportunity to optimize them? It all depends on the workspace model.
The difference between pay-as-you-go and subscription workspace pricing can mean thousands of dollars in annual savings. Both models can be "cheaper" depending on how your team uses workspace, which makes the decision more complex than comparing sticker prices.
Here’s how to differentiate and evaluate them effectively, to optimize the ROI of a successful transition to hybrid work.
How pay-as-you-go pricing works
Pay-as-you-go means you pay only for what you use—by the hour, day, or booking. Common structures include hourly rates for meeting rooms or focus spaces, day passes for hot desks, and credit systems where you buy a balance that gets deducted with each booking. Some credits roll over month to month while others expire.
The appeal is straightforward: no commitment, total flexibility, and the ability to scale down to zero when you don’t need workspace. This model works best for teams with unpredictable or infrequent workspace needs. A real-world example might be a consulting team that needs workspace three to four times per month in different cities for client meetings or project sprints.
How subscription-based pricing works
Subscription-based pricing means you pay a fixed monthly or annual fee for access—typically per user. Common structures include per-seat subscriptions with unlimited or capped usage, tiered plans based on access levels (local, regional, national), and team or enterprise plans with volume pricing that reduces per-seat costs.
The appeal is different: budget predictability, no per-use friction, and a structure that encourages adoption. This model works best for teams with consistent, recurring workspace needs. A real- world example might be a distributed team where ten to fifteen people work from coworking spaces two to three times per week across multiple cities.
3 Common cost comparison scenarios
The only way to understand which model saves money is to run the numbers based on actual usage patterns. Here are four common scenarios:
Scenario 1: Low usage (1-3 workspace days per person per month)
Pay-as-you-go: 2 days × $30/day × 10 people = $600/month
Subscription: 10 seats × $100/month = $1,000/month
Winner: Pay-as-you-go by $400/month
Why it wins: Usage is too low to justify subscription overhead. You’d be paying for capacity your team doesn’t use.
Scenario 2: Moderate usage (5-8 workspace days per person per month)
Pay-as-you-go: 6 days × $30/day × 10 people = $1,800/month
Subscription: 10 seats × $100/month = $1,000/month
Winner: Subscription by $800/month
Why it wins: Consistent usage crosses the break-even threshold where subscription economics start working in your favor.
Scenario 3: High usage (10+ workspace days per person per month)
Pay-as-you-go: 12 days × $30/day × 10 people = $3,600/month
Subscription: 10 seats × $100/month = $1,000/month
Winner: Subscription by $2,600/month
Why it wins: Subscription delivers predictable cost regardless of actual usage, and heavy users get dramatically better per-use economics.
Hidden costs to watch for
The real cost of either model includes a few hidden factors: costs that don’t show up in the headline rate. The impact depends on your team’s usage consistency and your admin capacity to manage bookings or seat allocation effectively. Watch for these “invisible” costs:
Pay-as-you-go hidden costs:
Booking fees or transaction fees added to each reservation
Premium pricing for last-minute bookings when you need workspace urgently
Higher hourly or daily rates compared to the effective per-use cost of subscriptions
Admin time spent booking and expensing individual visits
Credit expiration policies that waste unused balances
Subscription hidden costs:
Paying for seats that go unused because of low adoption or seasonal workers
Minimum commitment periods that lock you in before you know if the model fits
Upgrade fees to access premium locations or amenities
Cancellation penalties if you need to scale down mid-contract
Per-user pricing that doesn’t account for shared usage patterns
Hidden benefits beyond the price tag
Cost isn’t just about the number on the invoice; it’s also about what each model enables or prevents. The real benefit of choosing the right model is that it reduces cognitive load for both employees and admins, which has value beyond pure cost savings. Consider:
Pay-as-you-go benefits:
Zero waste because you never pay for capacity you don’t use
Easy to test workspace needs before committing to a larger investment
Natural cost control through friction (people think before booking)
Flexibility to scale to zero during slow periods or between projects
Works well for project-based or seasonal work patterns
Subscription benefits:
Removes friction so people use workspace when they need it without cost anxiety
Budget predictability makes financial planning easier
Often includes perks like guest passes, premium locations, or priority booking
Encourages adoption and helps build culture around hybrid work
Simplifies expense management (one invoice instead of dozens of individual bookings)
Delivers better per-use economics once you cross the usage threshold
How to choose the right model for your team
Start with actual usage data if you have it, or your best estimates if you’re new to flexible workspace. Calculate your break-even point by asking: At what usage level does subscription become cheaper than pay-as-you-go? Consider usage distribution across your team—is it even, or concentrated among a few heavy users?
Factor in admin time and ask how much booking and expense management costs you in hours and overhead. Think about behavior and whether pay-per-use friction helps control costs or hurts adoption by making people hesitate when they genuinely need workspace.
Test both models if possible. Some platforms let you try pay-as-you-go before committing to subscriptions, which removes guesswork from the decision. And remember: You can change models as your team’s needs evolve—nothing about this choice is permanent!
The hybrid approach: Best of both worlds
Many platforms, including Deskpass, support mixed models within one account. The common pattern is subscriptions for frequent users combined with pay-as-you-go access for occasional needs. This approach optimizes cost while maintaining flexibility, and it avoids the trap of over-committing or over-restricting based on team averages that don’t reflect individual behavior.
Match your pricing to your needs
Neither model is universally better. The right choice depends on usage patterns, team distribution, and admin capacity. The best approach is to start with data, calculate your break-even point, and choose the model that matches real behavior instead of aspirational plans or assumptions.
Ready to explore flexible pricing options that adapt to your team’s actual needs? Connect with Deskpass to see what’s possible.
