How is the 'Central Reservation System Contribution' calculated for Baymont Inn Suites franchises?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The following table sets forth "Central Reservation System Contribution" and "Wyndham Rewards Contribution" for all 555 Chain Facilities in the United States and Canada that were part of the System as of December 31, 2024 (the "Contribution Group"). The Central Reservation System Contribution is calculated by dividing the gross room revenue from reservations generated by the Central Reservation System (including by Wyndham Rewards members) at the Contribution Group from January 1, 2024 through December 31, 20245 by all gross room revenue at the Contribution Group from the same period, expressed as a percentage. The Wyndham Rewards Contribution is calculated by dividing the gross room revenue from reservations generated by members of the Wyndham Rewards loyalty program at the Contribution Group from January 1, 2024 through December 31, 2024 by all gross room revenue at the Contribution Group from the same period, expressed as a percentage.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–88)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the Central Reservation System (CRS) Contribution is a key metric used to assess the revenue driven by the brand's reservation network. This network includes call centers, brand websites, global distribution systems, the Wyndham Rewards loyalty program, third-party websites, and the Global Sales Organization. The CRS Contribution specifically measures the percentage of gross room revenue attributable to reservations made through these channels.
To calculate the CRS Contribution, Baymont Inn Suites divides the gross room revenue from reservations generated by the Central Reservation System (including those made by Wyndham Rewards members) by the total gross room revenue for a group of 555 facilities in the United States and Canada. This calculation is performed for the period from January 1, 2024, through December 31, 2024. The resulting figure is then expressed as a percentage, providing a clear indication of how much revenue is directly influenced by the brand's reservation systems.
For a prospective franchisee, understanding the CRS Contribution is crucial because it highlights the effectiveness of Baymont Inn Suites's brand recognition, marketing efforts, and reservation infrastructure in driving business to individual franchise locations. A higher CRS Contribution suggests a greater reliance on the brand's systems to fill rooms, which can be a significant advantage, especially for franchisees who may lack extensive local marketing resources. Conversely, a lower percentage might indicate a greater need for the franchisee to focus on local marketing and direct sales efforts to achieve optimal occupancy rates.
The FDD also mentions Wyndham Rewards Contribution, which is calculated similarly but focuses specifically on revenue generated by members of the Wyndham Rewards loyalty program. Both metrics provide valuable insights into the sources of revenue for Baymont Inn Suites franchises and can help potential franchisees evaluate the potential benefits of joining the brand.