by Cheryl-Anne Sturken and Andrea Doyle | December 01, 2018

Hyatt Hotels Corp. will slash third-party vendor commissions from 10 percent to 7 percent, effective as of Feb. 1, 2019, according to a number of independent planning firms contacted by Northstar Meetings Group, M&C's parent company. 

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 along similar lines, citing the move as optimal for operational efficiencies.

When interviewed in May about whether Hyatt would also reduce commissions, Trina Camacho-London, the company's vice president of global group sales, said Hyatt 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.

In a Nov. 15 letter obtained by M&C, Hyatt notified its customers about the commission reduction, which pertains only to participating Hyatt properties in North America.

Independent planner Eric Rozenberg, president and CEO of Parkland, Fla.-based Event Business Formula, took the news in stride. "I am not surprised at all," he said. "I believe the whole industry will go like this, with commissions that are even lower in the future. 

"If you are living on an all-commission model, it's time to change your business model," Rozenberg added. "You really have to start speaking a different language and position yourself as a strategic partner with your client." 

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