IHG cuts third party commissions in the US
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.
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