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February 5, 2018

Americas: Marriott’s Commission Reduction: Don’t Say You Weren’t Warned!

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The Ritz-Carlton New York, Central Park
The Ritz-Carlton New York, Central Park

Six months ago, a prescient article by the Global Business Travel Association Meetings Committee raised the specter of a reduction or elimination of hotel commissions. As of a few days ago, that possibility is now a reality, thanks to the folks at Marriott reducing commissions from 10 percent to 7 percent in the U.S. and Canada.  And do we believe this is the final reduction in commissions, or only the first step?  Let the chaos begin!

The only question that matters now is whether other chains, seeing an opportunity to increase profitability, will fearlessly follow suit, thereby making the chaos unavoidable, or whether wisdom will prevail, with other chains remembering that commissions are almost universally used by their corporate clients to offset the cost of meetings management programs. I believe that if the other chains remember that commissions are a key factor in the funding of meetings management programs, they will reap the rewards of a massive share shift away from Marriott to chains that are more amenable to corporate meetings management programs.

Read more at MeetingsNet

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