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Marriott cuts commission at US and Canada hotels

Marriott International will cut commissions paid to third-party meeting planners from 10 per cent to 7 per cent

Pictured: Marriott, the largest hotel company in the world will cut commissions

Marriott has cut commissions paid to third-party meeting planners from 10 per cent to 7 per cent for all its US and Canada hotels.

The reduction will take effect at the end of March, but will remain at 10 per cent for countries other than the US and Canada. Marriott will pay the 10 per cent commission for contracts signed prior to March.

Marriott global officer of digital, distribution, revenue management and global sales Brian King said: "We've been looking at the demand that we're receiving from our customers and the amount of innovation that needs to take place in the group space from an end-user perspective, and then we've also been watching the pace of revenue growth and the pace of commissions, and they're just not commensurate with each other.

“The policy may not come as a surprise to many in the meetings and events space, as fears that commissions would change have been growing the past three to four years, particularly in light of industry mega-mergers."

He added that the company was not planning to do away with group and meetings commissions entirely.

He said: "We're very, very committed to intermediaries and our partners, we're committed to our customers and we're committed to our hotel owners. It's a three legged-stool, and we are trying to strike the right balance that we can appropriately take care of each of those audiences, invest in the hotels appropriately so those customers can have experiences that they desire which will drive demand to our partners."

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