How are the fees paid to Sabre funded for reservations at SpringHill Suites By Marriott?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
markups are subject to change.
We and our affiliates pay Sabre Inc. ("Sabre") a fee for each transaction that is delivered from travel
agencies through Sabre's global distribution system. These fees are funded through the costs charged to the hotels for each reservation directly or through the Program Services Contribution ("Reservation System Fees"). If we purchase select Sabre Travel Network media products and services in amounts above certain thresholds during any year, then we will receive a credit for such year. In 2024, we and our affiliates received approximately $354,000 as a result of this arrangement, all of which will be used to
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 70–75)
What This Means (2025 FDD)
According to SpringHill Suites By Marriott's 2025 Franchise Disclosure Document, the fees paid to Sabre Inc. for transactions delivered from travel agencies through Sabre's global distribution system are funded through costs charged to the hotels for each reservation, either directly or through Program Services Contribution, also known as Reservation System Fees. If SpringHill Suites By Marriott purchases select Sabre Travel Network media products and services above certain thresholds during any year, they will receive a credit for that year. In 2024, SpringHill Suites By Marriott received approximately $354,000 as a result of this arrangement, which was used to offset reservation system costs.
For a prospective franchisee, this means that a portion of the fees they pay for reservation services contributes to funding the fees Marriott pays to Sabre for using its global distribution system. The costs are ultimately passed down to the franchisees. However, Marriott also actively seeks to offset these costs by strategically purchasing Sabre Travel Network media products and services.
This arrangement highlights how SpringHill Suites By Marriott manages its relationships with third-party vendors like Sabre to optimize costs and potentially reduce the financial burden on franchisees. The fact that Marriott received a $354,000 credit in 2024 demonstrates their efforts to mitigate reservation system expenses, which benefits the franchise system as a whole.