Meeting Planners Face Challenges Amid Commission Cuts in Sellers’ Market

In a crowded field of contenders, commission issues have captured the top spot as the number one challenge meeting planners face this year. There are others, of course—among them the current sellers’ market—but the commission issue somehow triggers a more personal reaction. “It's maddening that Marriott decided to do this at the height of the sellers' market, and the reasons given were puzzling to many planners and suppliers alike,” said Shawna Suckow, founder of SPIN (Senior Planners Industry Network). Marriott International’s move to cut commission from 10 to 7 percent in North America for third-party planners got the year off to a bumpy start. Hilton Worldwide followed suit just two months later while InterContinental Hotels Group (IHG) in May joined in on the commission cuts. The hotel giants’ rationales: Marriott, whose cuts took effect March 31, and Hilton, whose cuts will take effect Oct. 1, wanted to reduce costs for owners who need to reinvest i