Marriott will cut the commission rate it pays third-party meeting planners from 10% to 7% from 31 March for all properties in the US and Canada. Contracts signed prior to this date will be eligible for 10% commission.
The policy will apply to group intermediaries globally when they are sourcing business to hotels in the U.S. and Canada. Commissions for the hotels outside the US and Canada remain at 10%.
In an official statement released by the hotel group said: "Many corporations and organisations rely on group intermediaries for sourcing, contracting, and planning meetings and events. We understand the value these third parties bring, and they are also important business partners to Marriott.
"At the same time, Marriott’s group distribution costs are growing faster than our group revenue. These costs are limiting our ability to invest in meeting products, experiences, and innovation.
"Changing economics in this segment, plus these growing costs, required us to reevaluate our intermediary compensation model. We are introducing a new strategy that will result in a more sustainable way of partnering with intermediaries."
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