Northstar Meetings Group has confirmed from a number of third-party industry executives that Hyatt Hotels Corp. will slash third-party vendor commissions from 10 percent to 7 percent, effective Feb. 1, 2019. NTM reached out to Chicago-based Hyatt for comment, but as of the time this briefing was posted, Hyatt had not responded.
Hyatt is following in the footsteps of three other major U.S. hotel companies, Marriott International, Hilton and InterContinental Hotels Group, which earlier this year trimmed third-party commissions, sighting operational efficiencies.
In May of this year, when interviewed by Meetings & Conventions about reducing commissions, Trina Camacho-London, Hyatt’s vice president of global group sales, said the company was “monitoring market share and everything else in regard to this.” Now, it appears the company has completed its reassessment and will join the ranks of its competitors.
Hyatt sent a letter to its customers this afternoon, which was obtained by Northstar Meetings Group, announcing its decision and noting that the commission reduction pertains only to participating Hyatt hotels in North America.