What fee does Budget charge for bookings made through Priceline?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Third Party Automated Reservation Fee. This fee covers the reservation transmission fee for all reservations generated by third parties booked through their proprietary systems (also known as a Global Display System or "GDS" and referred to elsewhere in this Agreement as a "GDS") and processed through the Reservation System on Licensee's behalf. The current rates for this fee are indicated in Schedule 2 to Schedule F, which is attached hereto and incorporated herein by reference, and are subject to change as and to the extent that the GDS reservation fee rates that ABCR is required to pay changes.
- c. Budget Centralized Commission Services Program Fee. This fee will cover the expenses of processing and paying commissions for travel source generated reservations in accordance with Schedule 3 to Schedule F, which is attached hereto and incorporated herein by reference, as amended from time to time.
- d. International Phone Reservation Fee. This fee covers expenses for reservations made by international phone sources. The current International Phone Reservation Fee is listed in Schedule F.
- e. All fees due to be paid by Licensee to ABCR under this Agreement are due and payable by Licensee via the online Composite Statement for such fees.
(b) Joint Resolution Procedures.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
The 2025 Budget Franchise Disclosure Document (FDD) indicates that reservations made through third-party systems like Priceline are subject to a "Third Party Automated Reservation Fee." This fee covers the cost of transmitting reservations generated by third parties through their proprietary systems, also known as Global Display Systems (GDS), and processed through Budget's Reservation System on behalf of the franchisee. The exact rates for this fee are detailed in Schedule 2 of Schedule F, which is attached to the FDD and incorporated by reference. These rates are subject to change based on adjustments to the GDS reservation fee rates that Avis Budget Car Rental (ABCR) is required to pay.
In addition to the Third Party Automated Reservation Fee, Budget franchisees also pay a general Reservation Fee of $4.10 per reservation, which includes reservations from phone/GDS equipment, phone calls, or internet/direct link, including budget.com. This fee covers corporate overhead, promotional expenses for budget.com, and customer complaint service expenses. Franchisees also pay travel agency commissions, which are identified in the Summary Pages (Section 10(f)).
Prospective Budget franchisees should carefully review Schedule 2 of Schedule F within the FDD to understand the specific fees associated with reservations made through third-party systems like Priceline. It is also important to note that these fees are subject to change, and franchisees are responsible for staying informed about any adjustments to the fee structure. Understanding these reservation fees is crucial for accurately forecasting expenses and managing profitability as a Budget franchisee.