01/26/2018

Commissions, Cut

How Marriott is changing the way it does business

Third-party agencies that book hotel room blocks for associations and other groups learned Wednesday that Marriott will soon be paying reduced commissions on bookings at its hotels in North America and Canada.

The new commission rate for group intermediaries on contracts signed beginning March 31 will be 7 percent, down from 10 percent currently. Commissions on bookings at Marriott properties  in other countries will remain at 10 percent.

In a letter to customers, Tammy Routh, Marriott senior vice president for global sales, said the company was making the move because “Marriott’s group distribution costs are growing faster than our group revenue; these costs are limiting our ability to invest in meeting products, experiences, and innovation.” She said the new strategy “will result in a more sustainable way of partnering with intermediaries.”

Please click here to read the complete article from Associations Now.