Home > Americas
January 29, 2018

Americas: Marriott Commission Cut: “Short Sighted” or Business Necessity?

In partnership with:

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

What do you think of this $type?

About the Author: MeetingsNet






   IT&CM China  Caribbean Meeting Incentive Travel Exchange      Gulf Incentive, Business Travel & Meetings Exhibition EIBTM IBTM IMEX America  IT&CMA IT&CM China IT&CM India Conventa BTC convene  cventMBTMMA 2013 COCAL 

GLOBAL AGENCY PARTNERS                                                                                           OFFICIAL TRADE SHOW PARTNER FOR THE UK MEETINGS MARKET 

MCI Ovation Euromic