Hilton Hotels & Resorts has followed Marriott International in cutting independent planner commissions to 7 percent, from the previous rate of 10 percent, at participating hotels in the U.S. and Canada, effective October 1, 2018. Marriott's commission reduction will take effect on March 31, 2018, as previously announced.
All existing business booked before October 1 will be honored at the commission rate contracted, according to Hilton. In a communication sent to planners, Hilton used the following wording to justify the action:
“At Hilton, we recognize the important and integral role group intermediaries play in our meetings and events business, and we are proud to partner with a wide network of travel professionals to create meaningful experiences for our guests," the hotel company said in its official statement to planners.
"At the same time, we also have to balance the needs of all parties, and we therefore continually review our sales and distribution strategies to ensure we are offering the best value for our customers, hotels and owners.
“In light of growing group distribution costs and the complexity of intermediary services offered, Hilton has revised its base group sales commission rate to seven percent for all bookings into participating hotels in the U.S. and Canada, effective October 1, 2018.”
Read more of Meetings Today's reporting on the commission cuts, here.