Just when it seemed like the ripple of planner commission cuts—10 to 7 percent—throughout the industry was fading, another major hotel company follows suit.
Earlier this year, Marriott International stunned the industry with a move to cut commissions on group bookings, causing outcry from planners who called the decision many things, including one “of little thought” that “does little to strengthen hard earned loyalty, preference or advocacy.” More on that here. Hilton followed suit, then InterContinental Hotels Group and with a letter released yesterday by Jack Horne, global head of sales and revenue for the Chicago-based hotel chain, Hyatt Hotels Corporation will join ranks early next year.
“We have carefully evaluated our commissions structure to ensure it meets the needs of our constituents and remains competitive in the market,” Horne said. “As an outcome, effective February 1, 2019, Hyatt will move to seven percent commissions for intermediaries booking group business at hotels in the US.” Hyatt’s current commissions model will apply for all business signed prior to February 1.
Horne noted shifting market conditions as a tipping point for the commission cuts, which are requiring a “holistic” approach. Further to this point, Horne said:
“We did not arrive at this decision easily, but rather took our time to carefully consider the needs of all of our stakeholders. Consistent with Hyatt’s purpose we care for people so they can be their best we remain fully committed to providing solutions that meet the needs of our global customer base, and improving the overall planning experience with our exceptional event services teams as well as time saving technology tools and resources.”