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January 29, 2018
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Americas: Marriott Commission Cut: “Short Sighted” or Business Necessity?


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Marriott International’s announcement this week that it is cutting commissions from 10 percent to 7 percent has third-party planning and sourcing companies disappointed and on alert. The decrease goes into effect on March 31, 2018, for all Marriott International properties in the U.S. and Canada.

The change, according to Marriott, is an effort to improve the bottom line for its hotel owners: “Meetings and events represent a critical part of our business as well as an opportunity to drive innovation and win with customers. The current business model and environment, however, present significant obstacles to making the investments needed to deliver a world-class experience for customers. While group intermediaries play an important role in the marketplace, costs for our North American hotels and owners are growing at a faster pace than group revenue, which impacts hotel profitability.” The commission change, says a Marriott spokesperson, is a way “to strike a balance and ensure the long-term health of our business.”

Read more at MeetingsNet


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