Hilton Hotels & Resorts will cut its commission rates from 10% to 7%, from 1 October this year. The new rates will apply to all planners who book across its US and Canada hotels. Any bookings before this date will not be affected.
Danny Hughes, Hilton’s senior vice president and commercial director, Americas, pointed to “growing group distribution costs and the complexity of intermediary services offered” as the reason for the cuts. “This change, while easing operations costs associated with group revenue, will allow our owners, over time, to make further investment in products and offerings that enhance the guest experience.”
“At Hilton, we recognise the important and integral role group intermediaries play in our meetings and events business, and we are proud to partner with a wide network of travel professionals to create meaningful experiences for our guests.
“At the same time, we 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, hotels and owners,” he added.
Hilton now joins the Marriott chain of hotels in no longer offering 10% on bookings, which was announced by Marriott in January and caused outrage among some planners.