by Michael J. Shapiro | May 09, 2018
The InterContinental Hotels Group has become the latest hospitality giant to slash third-party commissions. Following the lead of Marriott International and Hilton, IHG will cut sales commissions from 10 percent down to 7 percent for all bookings made in the U.S. and Canada as of Jan. 1, 2019. 
"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," noted senior vice president of global salesDerek DeCross. Any contracts signed before Jan. 1 of next year will remain eligible for the 10-percent commission rate. The company has not yet responded to M&C's request for further comment.
 
The new policy includes bookings made at Kimpton Hotels & Restaurants, which IHG acquired in late 2014. The standard 10-percent rate will remain in place at all IHG properties in Puerto Rico and at all hotels outside the U.S. or Canada. 
 
Marriott announced its commission cut in January; the new policy went into effect this past March 31 across the the company's portfolio. Hilton's move, which will encompass "participating hotels," doesn't go into effect until this coming Oct. 1. The moves have spawned a new planners' association, Meeting Planners Unite, for the "betterment of the independent meeting planner and the industry as a whole."  
 
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