Originally Posted by
pvrMM3
Many times when this is done, the group rate that is negotiated also includes a commission to the event operator similar to what a 3rd party booking site or travel agent gets, even though you are paying for the room separately. They appear as Group Tour Negotiated Rates. I have come across this issue going back 15 years or so, the first time experiencing it at the Old Hilton in Cancun when I was there for a convention. Failed to get benefits at check in, and failed to get points for the stay after checking out. I called the Diamond line, and they credited me the points after a lot of complaining, but that was it. I know for a fact that convention negotiated a kick back from the hotel, as the new person in charge was a former GM of an Embassy Suites Hotel, and saw money on the table for their organization (he told me point blank about this later on.)
Typical group commissions are 7% of room revenue. There may also be rebates negotiable as well. When it comes to group sales, everything is negotiable if the money's right.