Hilton Follows Marriott on Commission Cuts In New Challenge for Meeting Planners
Photo Credit: A promotional photo of Hilton's new lobby concept. Hilton is chalking up its commission cuts on hotel bookings to the need for hotel owners to spend on hotel improvements instead of distribution fees. Hilton Worldwide
Skift Take
The floodgates are now open for the larger hotel chains operating in North America to lower their commission rates for meetings alongside Marriott and Hilton. At a time when meeting space is limited and expensive, a wider shift will likely lead to a wave of consolidation for third-party meeting planners as they become less profitable.
Where Marriott International leads, others follow.
Hilton Worldwide will reduce standard hotel booking commissions for meeting professionals from 10 to 7 percent later this year for group bookings at its U.S. and Canada hotels, as many predicted, following the example of Marriott International.
Business booked by meeting planners and travel agents before October 1 will still receive the standard 10 percent commission. Partners will be a
