IHG cuts third party commissions
InterContinental Hotels Group is joining rivals Marriott International and Hilton with a deep cut in third-party commissions.
Starting January 1, 2019, commissions will drop from 10% to 7% for all groups and meetings business made at hotels in the US and Canada.
The 10% rate will remain in force for all other hotels overseas including Puerto Rico.
The new commission structure was outlined in a memo sent to agents.
"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. As part of this, IHG has assessed its group bookings commission structure and will be changing the group travel partner commission structure," it said.
It affects all IHG brands which include Holiday Inn, Crowne Plaza and Kimpton Hotels & Restaurants.
Echoing similar reasons offered by Marriott, Derek DeCross, senior vice president of global sales said: "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."
Marriott’s commission cut for group and meeting planners took effect in March while Hilton’s new commission structure begins from October 1, 2018.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements
Singapore to forbid entry to undesirable travelers with new no-boarding directive