Two months following Marriott International's announcement that it would reduce group-intermediary commission rates to 7 percent, Hilton has announced it will do the same. Hilton is providing third parties with more notice than its competitor, however. Group business booked by intermediaries at participating hotels in the U.S. or Canada on or after Oct. 1, 2018, will be subject to Hilton's new base commission rate of 7 percent. Business booked before then will be honored at the commission rate previously contracted. That Hilton refers in its statement to "participating hotels" indicates the change isn't mandatory for all properties. "We're changing our guidelines on the commission rate," explained Danny Hughes, Hilton's senior vice president and commercial director for the Americas. "But I can tell you that, like so many programs we have, we anticipate a huge amount of participation in this. It's a discussion point we've been having with owners for a long, long time now. I'm confident it will be very high participation." The decision is a result of growing group-distribution costs and the complexity of intermediary services offered, according to Hughes. "This is truly something that is good for everybody," Hughes continued. "Whilst the move might be initially met with some frustration, the one thing we all share - whether it be the hotel, whether it be us as the brand, whether it be the third-party meeting planners - the one thing we are all totally aligned on is that we thrive when great meetings happen in our hotels. And that's what this is going to help facilitate. It's going to allow owners to actually make investments in both the physical product and in new innovations that are coming along, and of course, great, great service - and hopefully that's going to mean more and more meetings, which is good for everybody. That's really the crux of why we're doing this." Get the full story at Meeting & Convetions Read also "Accor has no plans to follow Marriott in commission cuts" and "Report: Intermediaries contribute to meetings costs & it will only get worse"