Marriott Reducing Third-Party Commissions

Marriott International has informed group intermediaries that it is reducing commissions from 10 percent to 7 percent for all properties in the United States and Canada, effective March 31, 2018. Commissions for properties outside of the United States and Canada will remain at 10 percent.

Tammy Routh, senior vice-president, Global Sales, Marriott International, sent a letter to group partners yesterday (January 24) informing them of the change. In it, she explained that the company’s group distribution costs are growing faster than its group revenue, and that these increased costs are limiting its ability to invest in meeting products, experiences and innovation. The letter went on to explain that these increasing costs, coupled with changing economics in the segment, resulted in Marriott’s need to reevaluate its intermediary compensation model.

In addition to the reduction in commission for U.S./Canadian properties as of March 31, 2018, key points in the new compensation strategy outlined in the letter are:

• Contracts signed prior to March 31, 2018 will be eligible for 10 percent commission.
• Policy applies to group intermediaries globally when they are sourcing business to hotels in the U.S. and Canada.
• Commissions for Marriott International hotels outside the U.S. and Canada remain at 10 percent.

The letter emphasized that Marriott values its intermediary partners, and offers them a number of valuable benefits, including:

• the Meetings Excellence! online training program;
• a best-in-class meeting experience across 30 leading hotel brands around the world, including the 100+ property Marriott Convention & Resort Network;
• the industry’s first centralized group commissions, the benefits of which include timely commission payment 45 days after an event ends; user-friendly statements; access to the industry’s first Group Intermediary website, choice of payment method, and the industry’s only centralized group support desk managed by Intermediary Partner Care;
• dedicated global and local sales resources with product expertise and the ability to connect customers’ needs with its multiple brands;
• and engagement opportunities with the company’s hotels including its Travel Planner’s Conference.