What does 'Enterprise Contribution' mean for a Crowne Plaza hotel, and what channels and sources are included in this calculation?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4 "Enterprise Contribution" means reservations processed via the following Holiday-managed channels and sources: (i) IHG.com, including all international iterations of this site and Holiday's mobile apps ("Web"); (ii) Holiday's worldwide toll-free reservations phone numbers and hotel call-divert programs ("Voice"); (iii) global distribution systems that permit traditional travel agencies, as well as many third-party online travel websites, to reserve guestrooms ("GDS"); (iv) online travel agencies, such as Expedia, with which we have distribution agreements ("OTA"); (v) Global Sales Office business that books directly at a Hotel (GSO); (vi) IHG One Rewards members that book directly at a hotel ("Loyalty Direct"); and (vii) distribution partners that are directly connected to our Reservation System that are not included in the previous sources ("Direct Connect").
Source: Item 19 — Financial Performance Representations (FDD pages 91–95)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, 'Enterprise Contribution' refers to reservations processed through Holiday-managed channels and sources. These include IHG.com and its international versions, along with Holiday's mobile apps ('Web'). It also encompasses Holiday's worldwide toll-free reservations phone numbers and hotel call-divert programs ('Voice').
Additionally, Enterprise Contribution includes reservations made through global distribution systems used by traditional travel agencies and third-party online travel websites ('GDS'). Online travel agencies like Expedia, with whom Holiday has distribution agreements ('OTA'), are also factored in. Furthermore, it accounts for Global Sales Office business that books directly at a Hotel (GSO), IHG One Rewards members that book directly at a hotel ('Loyalty Direct'), and distribution partners directly connected to their Reservation System but not included in the previous sources ('Direct Connect').
For a prospective Crowne Plaza franchisee, understanding Enterprise Contribution is crucial as it reflects the effectiveness of Holiday's reservation systems in driving business to their hotel. A higher Enterprise Contribution percentage suggests a greater reliance on these channels for bookings, which could impact revenue projections and marketing strategies. The FDD indicates that for Mature Hotels, the Average Enterprise Contribution was 79.8% for the year ended December 31, 2024.