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Frequent Traveler Programs are very expensive to operate. Franchisees are required to bear their fair share of the costs associated with these programs. How are the costs of frequent traveler programs shared by franchisees?

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jepessoa

Answer:

Franchisees pay their share of the costs by:

  1. paying a % of revenue generated by rooms rented by members
  2. paying a fixed amount per room rented by members
  3. depending on the type of business, they might pay a one-time participation fee

Explanation:

Frequent traveler programs are offered by airlines to increase consumer loyalty, specially from frequent fliers. Generally airlines work together with banks or credit cards companies to extend the programs beyond flying and they include car rentals, everyday purchases, hotel and lodges, etc.

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