InterContinental Hotels Group (IHG) will reduce commissions paid to group and meetings intermediaries from 10 percent to seven percent, joining Marriott and Hilton aboard the new model bandwagon.
The cuts will affect bookings made at IHG's company-managed properties in the U.S. and Canada and will take effect January 1, 2019.
Notable IHG brands include InterContinental Hotels & Resorts, Kimpton Hotels & Restaurants, Crowne Plaza Hotels & Resorts and Holiday Inn, among others.
Echoing Marriott and Hilton, IHG said the cost-cutting measure will free the company up to invest in enhancing the guest experience.
"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," said IHG's senior vice president of global sales, Derek DeCross in a statement.
"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 and foundational to what we do. As part of this, IHG has assessed its group bookings commission structure and will be changing the group travel partner commission structure," DeCross added in a letter to travel partners informing them of the change.
Marriott was the first major chain to slice commissions for third-party group and meeting planners, with the new rate going into effect at the end of March. Meanwhile, Hilton's reduced commission will take effect October 1, 2018.
While more and more hotels cut commissions and perhaps inadvertently downplay the value of travel agents in the process, Dream Hotel Group is looking to fill the void by offering 12-percent commissions for qualified groups and meetings booked and actualized through the end of 2018.
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