What is the Third-Party Internet Booking Fee per booking for Best Western?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| Marketing and Technology Fees | 2.10% of PRR. See Note 1. | Billed one month in arrears, due and payable upon statement receipt. | See Note 1 for details on what components comprise the Marketing and Technology Fees. |
|---|---|---|---|
| Direct Connect Commissions | Varies by direct connect. | Due and payable upon statement receipt. | Payable as a pass-through commission charge for direct connect delivered reservations through negotiated brand pricing for Expedia, Booking.com, etc. |
| Global Distribution | $7.90 per booking. | Due and payable | Payable for reservations booked |
| Systems (“GDS”) | monthly upon | through GDS and GDS internet | |
| Fee | statement receipt. | travel sites. | |
| Third-Party Internet Booking Fee | $4.60 per booking. | Due and payable monthly upon statement receipt. | Payable for reservations booked through third-party internet booking sites. |
Source: Item 6 — Other Fees (FDD pages 24–37)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, a franchisee will be charged a Third-Party Internet Booking Fee of $4.60 per booking. This fee is due and payable monthly upon statement receipt.
This fee applies to reservations that are booked through third-party internet booking sites. These sites include online travel agencies (OTAs) like Expedia and Booking.com, which are commonly used by travelers to find and book accommodations. Best Western franchisees should factor this cost into their financial planning, as it will be incurred for each reservation originating from these third-party platforms.
It's important for prospective franchisees to understand how these fees can impact their profitability, especially considering the increasing reliance on online booking platforms. While these platforms can drive significant reservation volume, the associated fees can reduce the overall revenue per booking. Franchisees should analyze their booking sources and strategize to optimize their distribution channels to balance occupancy and profitability.