FlyerTalk Forums - View Single Post - Is it time for Marriott to give up on "Bonvoy"?
Old Apr 3, 2021 | 1:13 pm
  #49  
bocastephen
A FlyerTalk Posting Legend
10 Countries Visited
Conversation Starter
All eyes on you!
20 Years on Site
 
Join Date: Sep 2002
Location: LAX/TPE
Programs: United 1K, JAL Sapphire, SPG Lifetime Platinum, National Executive Elite, Hertz PC, Avis PC
Posts: 46,753
Originally Posted by Adelphos
Not sure about bulk buy commissions or the structure of contracts - all I know is that independent hotels in a large city are often paying 20%+ of the room rate all in to Expedia when the booking comes from that channel on average - this is a widely cited figure:

https://skift.com/2018/02/08/expedia...ing-campaigns/

Skift Research estimates that independents pay Expedia commissions of 15 percent to 30 percent as opposed to big brands, which pay 10 percent to 15 percent commissions.”
Just an estimate because commission contracts are strictly confidential - however the decision on how much to pay a travel agent, whether it's Expedia, or my own agency, is up to the discretion of the individual property, and in my own booking experience, these values vary widely by property or location so we can't really say that all independent hotels are paying the higher commissions. It just depends on how they want to market their product. Of course they have lower costs than a Marriott flagged property because they don't need to pay inflated franchise and technology fees to Marriott, hence some extra margin for direct marketing incentives, so they probably come out ahead on cost/margin vs a Marriott flagged property nearby with similar services and quality.
bocastephen is online now