Articles tagged “commissions”

Hotels charging resort fees now have the choice of paying higher commissions to Booking.com and/or seeing their properties fall in Expedia's sort order. The other change that many don't want to make is to simply — and painfully — stop charging anti-consumer resort fees.

This might be the best time in history for travel advisors to sell cruises, but it's also the most complex. Those who take time to know the growing array of cruise choices and focus on the high end of the market are the most likely to succeed.

Get ready for some commotion in Las Vegas and other destinations where hotel resort fees are common. Will impacted hotels abandon Booking.com? Will resort fees lose their appeal for hotels? Will Expedia follow Booking's lead? The fun and gamesmanship are just starting.

For pundits looking for a headline that Marriott won reduced commissions from Expedia, the reality is likely far more complex than that, and it might take an audit over the next few years to truly sort out the revenue impact. The new deal has Marriott properties remaining for sale on Expedia brands, as the two companies march off into the sunset maintaining their rough-and-tumble, if symbiotic relationship.

It’s been just over a year since Marriott made its move, the first in a wave of such measures. But instead of getting knocked down by the trend, independent meeting planners are finding ways to take control of their businesses.

The third party commission cuts by a growing number of hotel companies are emerging as planners’ biggest challenge in 2018. That’s followed by the current sellers’ market but, somehow, the cuts feel personal.

The hubbub over commission cuts seems to have died down for now, although agents and planners are scrambling to figure out what to do. Booking away from Marriott and Hilton properties may not always be the best move for a client, so it will be interesting to see how this all shakes out.

Travel agents and meeting planners feel betrayed by Marriott’s – and now Hilton’s – move to cut commissions on group bookings. They’re grappling with ways to deal with the cuts, even as they fear more hotel companies may follow suit. It's not personal, though; it's strictly business.

Hilton following Marriott with a commission cut is no surprise, really. The writing is on the wall for a larger upheaval in meetings' distribution. The innovation of small upstarts will play an important role, as well.

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.