How is the Digital Acquisition Fee calculated for The Standardx, and on what revenue subset is it based?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- Digital Acquisition Fee. We currently charge the Hotel and other Participating Hotels the "Digital Acquisition Fee" to help drive bookings through the Hyatt Group's online direct booking channels (the "Digital Channels"). The Digital Channels currently are the Hotel System Website and any Hyatt-branded website or mobile app (such as the World of Hyatt app). You must pay the Digital Acquisition Fee on the subset of Gross Rooms Revenue resulting from reservations that are generated through the Digital Channels, whether directly or via a link from another platform, such as a search engine advertisement, social media page, or any Franchisee Organization Website. We may, in our sole judgment and subject to change, exclude certain types of bookings that originate through Digital Channels for purposes of calculating the Digital Acquisition Fee and certain portions of Gross Rooms Revenue that is generated through the Digital Channels, such as the Upsell Revenue (defined below). Digital Channels do not include reservations placed through external sources, such as online travel agencies (e.g., priceline.com and expedia.com) or through Hyatt-managed channels that are not digital in nature, such as reservations placed via telephone calls to our global contact center.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, a Digital Acquisition Fee is charged to hotels to help increase bookings through The Standardx's online direct booking channels, referred to as the "Digital Channels". These Digital Channels include The Standardx's Hotel System Website and any Hyatt-branded website or mobile app, such as the World of Hyatt app.
The Digital Acquisition Fee is based on a subset of Gross Rooms Revenue. This subset includes revenue from reservations generated through the Digital Channels, whether directly or via a link from another platform, such as a search engine advertisement, social media page, or any Franchisee Organization Website.
However, The Standardx retains the discretion to exclude certain types of bookings that originate through Digital Channels when calculating the Digital Acquisition Fee. They may also exclude certain portions of Gross Rooms Revenue generated through these channels, such as Upsell Revenue. It's important to note that reservations placed through external sources like online travel agencies (e.g., priceline.com and expedia.com) or through Hyatt-managed channels that are not digital, such as telephone calls to their global contact center, are not included in the calculation of the Digital Acquisition Fee.