What is the third-party automated reservation fee for Budget when using the Amadeus airline code 1A?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Automated Reservation Fee. The Automated Reservation Fee will be determined in accordance with Schedule 3, as amended from time to time.
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- ABCR Centralized Commission Services Program Fee. The Bu
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the third-party automated reservation fee when using the Amadeus airline code 1A is $4.92. This fee is part of a schedule of fees associated with reservations generated through various Global Distribution Systems (GDS). These systems are used by third-party travel agencies to book reservations. The fees cover the cost of transmitting these reservations through the respective systems and are subject to change based on the rates Budget is required to pay.
For a prospective Budget franchisee, this means that for every reservation made through Amadeus using the 1A code, a fee of $4.92 will be incurred. This is an important factor to consider when evaluating the costs associated with different reservation channels. The franchisee should be aware that these fees can fluctuate, impacting the overall cost of operations. It is crucial to stay informed about any changes to these fees, as they can affect profitability.
Budget franchisees should monitor these fees closely and factor them into their pricing and revenue management strategies. Understanding the breakdown of reservation fees from different sources allows franchisees to optimize their booking channels and manage expenses effectively. The FDD also mentions that Budget may adjust these fees periodically to compensate for increases or decreases in actual costs, so franchisees need to stay updated on any such changes.
In addition to the Amadeus fee, the FDD lists fees for other GDS systems like SABRE, Galileo, WorldSpan, and Southwest Internet, as well as Priceline. This comprehensive overview enables franchisees to understand the cost structure associated with various third-party reservation systems and make informed decisions about which channels to prioritize.