Search Travel Market Report

mainlogo
www.travelmarketreport.com
  • News
  • Packaged Travel
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Air
  • Training & Resources
  • Who We Are
    • Brian Israel
    • Briana Bonfiglio
    • Candace Protzman
    • Dan McCarthy
    • Dori Saltzman
    • Jennifer Arango
    • Kelly Fontenelle
    • Louis Intreglia
    • Tom McCarthy

Marriott CEO Looks to Lower OTA Commissions

by Jessica Montevago / April 05, 2018
Marriott CEO Looks to Lower OTA Commissions

Photo: Cassiokabib/Shutterstock.com


Marriott International is making headlines again for its commission policies – but this time it’s with the online travel agencies (OTAs).

On Apr. 1, the hotel giant cut its travel agent commissions for group bookings from 10 to 7 percent for North American hotels, citing distribution costs are growing faster than group revenue.

Related Articles

How Will Hoteliers Respond Following Marriott’s Cut to Group Booking Commissions?
 

Marriott’s CEO Arne Sorenson has now suggested he would also like to see commissions reduced for OTAs.

"We would certainly like to pay less. We will have to see how the negotiations go," Sorenson told Reuters at a press conference in India.

Marriott will be renegotiating contracts with Expedia later this year and Booking Holdings Inc. – parent company of Priceline and Booking.com – sometime in 2019, which currently pays a commission of upwards of 10 percent to online booking sites.

The rift between hoteliers and OTAs has led a majority of major chains to launch direct booking campaigns in an attempt to recoup the market share coming through online booking sites.

Encouraging guests to book through its website and mobile app, Marriott Rewards Member Rates offer discounts of at least two percent on weekdays and up to five percent on weekends. The company also offers a Best Rate Guarantee: if a guest finds a lower rate elsewhere within 24 hours of booking direct, Marriott will match it and provide an additional 25 percent discount.

The program has been effective, and a majority of Marriott’s bookings are coming from direct channels.

"We have seen significant growth in all digital channels … What has declined a bit would be travel agents, in part because people are moving online and doing things themselves," Sorenson said to reporters.

Travel agents and industry associations, on the other hand, have had to grapple with the fallout caused by lodging companies offering special pricing directly to their customers, oftentimes feeling like they’re being bypassed as a distribution channel, along with having to deal with the reduced commissions for group bookings.

  0
  3
Related Articles
Aloft Planning New Hotel Near Ft. Lauderdale Airport and Port Everglades Cruise Port
Marriott Launches New Affordable, Midscale Hotel Brand
Westin Beach Resort & Spa at Frenchman’s Reef Opens in St. Thomas
Hyatt Adds Resort Fees to Upfront Pricing, Joining Marriott
Palm Beach Marriott Singer Island to Get a Multimillion Dollar Makeover
Marriott and MGM Resorts Partner to Create “MGM Collection with Marriott Bonvoy”
Marriott Cancun Resort to Reopen as All-Inclusive Next Year
Marriott International Adds New Midscale, Extended-Stay Brand
Marriott Launches New Advisor Reward Program for All-Inclusive Bookings
Coming this Month: Marriott to Include Resort Fees in Upfront Total Price

MOST VIEWED

  1. FAA Issues Nationwide Ground Stop for United Airlines Flights
  2. Southwest Airlines Strike Seems Imminent
  3. Maui Fires Update: Which Hotels and Resorts Are Open and Closed After Lahaina Fires
  4. Hurricane Lee's Uncertain Path Raises Some Travel Concerns
  5. Hurricane Lee Intensifies to Category 5: Caribbean and U.S. Impact Uncertain
  6. Hurricane Lee Update: Storm Poses Threat to New England and Atlantic Canada


  1. Tropical Storm Lee Could Hit the Caribbean this Weekend
  2. Royal Caribbean Monitoring Haiti Violence
  3. Hurricane Lee Forecast to Rapidly Strengthen into the Weekend
  4. Updated Cruise Line COVID-19 Vaccination, Booster, & Testing Requirements
  5. Delta Air Lines Makes Major Changes to SkyMiles Status and Sky Club Access Rules
  6. Hurricane Lee Nears New England and Atlantic Canada: Airline Waivers and Cruise Changes
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

Top Stories
TourRadar Intros New FIT Quote Feature for Advisors
TourRadar Intros New FIT Quote Feature for Advisors

"We identified that missing FIT capabilities were a barrier preventing some agents from booking with the platform..."

Read...
10 Common Questions Travel Advisors Have About Booking and Planning Safaris
10 Common Questions Travel Advisors Have About Booking and Planning Safaris

TMR passes your safari planning questions on to operators for their expert answers. 

Read...
Exodus Travels Rebrands as Exodus Adventure Travels
Exodus Travels Rebrands as Exodus Adventure Travels

Exodus Travels is rebranding to make it clear where its focus lies... 

Read...
What You Need to Know About Booking 2024 Official Olympic Travel Packages
What You Need to Know About Booking 2024 Official Olympic Travel Packages

On Location is the official hospitality provider for the Olympic Games.

Read...
Collette Launches New Travel Advisor Reward Program
Collette Launches New Travel Advisor Reward Program

Collette is rolling out a new travel advisor reward program that provides discounts on personal travel. 

Read...
Island Routes Offers Advisor Cash Incentive
Island Routes Offers Advisor Cash Incentive

At the same time, the company is offering guests a buy one tour, get a second one at 20% off promo. 

Read...
TMR OUTLOOKS & WHITE PAPERS
European Travel Trends 2023 Outlook
CP White Paper 1
Cruise Trend Outlook 2023
View All
industry insider
industry-insider.jpg
//services.travelsavers.com/AMGService.svc/REST/GetImage?ImageID=e6640f25-695d-ee11-92d0-005056a8720b
Why Travel Advisors Shouldn't Worry About Artificial Intelligence
Advertiser's Voice
//services.travelsavers.com/AMGService.svc/REST/GetImage?ImageID=b9003415-3a5d-ee11-92d0-005056a8720b
Travel Agent Education Powered by Avoya
About Travel Market Report Mission Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News |Packaged Travel |Cruise |Hotels & Resorts |Destinations |Retail Strategies |Niche & Luxury |Air |Training & Resources |Who We Are
© 2005 - 2023 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy