How are Travel Agent Commissions determined 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. |
| Third-Party Partner Booking Fee | $2.00 per booking. | Due and payable monthly upon statement receipt. | Payable for reservations booked through our third-party partner. |
| Performance Based Marketing (“PBM”) | 10% of PRR for each reservation received from a digital opportunity. See Note 1. | Due and payable monthly upon statement receipt. | Commission charge for reservations which result from digital opportunity. Subject to amendment by majority vote of System Hotels. |
| Member Web Booking Commissions | 10% of PRR for reservations from North American (N.A.) hotels. 5% of PRR for reservations from international hotels. | Billed one month in arrears. Due and payable monthly upon statement receipt. | Commission charge for reservations the Property receives from N.A. Best Western hotels and/or international hotels. |
| 10% of PRR for reservations to N.A. hotels. 5% of PRR for reservations to international hotels. | Credited one month in arrears. | Commission credit for reservations the Property sends to N.A. Best Western hotels and/or international hotels. | |
| Travel Agent Commissions | Varies by travel agent and agreement. | Case by case basis. Due and payable monthly upon statement receipt. | Payable as a pass-through commission charge for travel agents that are passed on to System Hotels without mark-up. |
Source: Item 6 — Other Fees (FDD pages 24–37)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the travel agent commissions vary by travel agent and agreement. These commissions are paid on a case-by-case basis and are due and payable monthly upon statement receipt. Best Western passes these commission charges directly to the System Hotels without any markup.
For a prospective franchisee, this means that the amount they pay in travel agent commissions will depend on the specific agreements Best Western has with different travel agents. This is a pass-through cost, so Best Western is not adding any additional fees or markups to these commissions. The franchisee is responsible for paying the commission amount agreed upon between Best Western and the travel agent.
It is important for franchisees to understand these agreements and how they might impact their overall costs. Since the commissions vary, it would be prudent for a potential franchisee to inquire about the typical range of these commissions and how they are negotiated to better forecast expenses.