Hilton is joining Marriott International in cutting commissions for group bookings.
The base rate for group business drops from 10% to 7% in line with Marriott’s announcement earlier this year.
Hilton said the rate cut takes effect for bookings made from October 1 for hotels in the US and Canada.
The company said the 10% commission rate will be paid until then.
"At Hilton, we recognize the important and integral role group intermediaries play in our meetings and events business. 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," said Danny Hughes, Hilton’s commercial director, Americas.
Hughes said the company decided to make the cut to meet rising distribution costs in the meetings and events market and would allow hotels ‘to make further investment in products and offerings that enhance the guest experience.’
CEO of the American Society of Travel Agents Zane Kerby called it another ‘disappointing’ development of companies ‘devaluing their relationship’ with travel professionals.
Marriott’s earlier announced rate cut takes effect on March 31.
