Hotel Commissions

Some See Marriott Rate Cut As Step Toward Tiered Commissions - Travel Weekly

Excerpt from Travel Weekly

In the wake of Marriott International announcing cuts to its group commissions, some hotel industry analysts and agents are suggesting that the lower commissions might not be ironclad and that there could be a tiered-commission structure in the works for group bookings.

Last month, Marriott said that beginning March 31, it would reduce its commission rate on group bookings to 7% from 10%.

Chekitan Dev, professor of marketing and branding at Cornell University's School of Hotel Administration in the SC Johnson College of Business, said Marriott might be resurrecting the strategy it employed with its Hotel Excellence training program. Marriott launched the program in 1999 with a commission-rate cut but gave agents a chance to earn back commission points.

Wyndham Hotel Group spokeswoman Gabriella Chiera confirmed last week that the company had no plans to alter its 10% commission rate "in the near future." And while representatives of Hilton and InterContinental Hotels Group (IHG) declined comment on the policy change, no other major hotel group, as of last week, had indicated it would follow Marriott's lead, according to both ASTA CEO Zane Kerby and Jennifer Wilson-Buttigieg, co-president and co-owner of Valerie Wilson Travel. 

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