Third major hotel chain falls in line with group bookings commission cut

Third major hotel chain falls in line with group bookings commission cut

TORONTO — It looks like 7% for group bookings is fast becoming the new normal as yet another hotel chain has announced a commission cut.

Effective Jan. 1, 2019 InterContintnental Hotels Group (IHG) is cutting the commission it pays to agents for group bookings from 10% to 7%, in a move that impacts all IHG properties, including Kimpton Hotels properties, in the U.S. and Canada. Group bookings at IHG properties outside of the U.S. and Canada will still earn 10%.

Here’s the statement from IHG: “This move allows us to balance the needs of our guests and owners by reinvesting the savings into programs and improvements that will benefit the guest experience.”

IHG also says: “Understanding the complexities of the groups and meetings industry and the nature of the business being booked by our customers is an integral part of our sales strategy and foundational to what we do. As part of this, IHG has assessed its group bookings commission structure and will be changing the group travel partner commission structure.”

Marriott was the first to cut group booking commissions, announcing in January 2018 that it was dropping the rate from 10% to 7% effective March 31.

The move drew ire from agent groups including ACTA and ASTA.

Hilton Hotels & Resorts followed Marriott’s lead in March 2018, announcing its own commission cut effective Oct. 1, 2018.

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