Originally Posted by
craigthemif
The last time I checked, roughly 50% of a major chain's guests do indeed book via an OTA.
But Bonvoy is supposed to a cheaper way of bringing in guests than the ridiculously high OTA commissions. And I doubt that the Trivago / Kayak crowd will pay much of a premium, if any, just because it says Marriott on the building.
So even though clearly the short term moneymaker can indeed be developer fees, Marriott do need to take care not to drive away their better Bonvoy customers.
standard hotel commissions for TAs are 10% of the base room rate, I wouldn’t call that ridiculously high.
of course some larger online agencies will negotiate a bulk commitment of rooms at a specific property for an unpublished rate and mark up their cost, but they assume the risk of loss of the don’t unload all of the rooms.