Mark Hoplamazian
Mark Hoplamazian

BUENOS AIRES -- Hyatt CEO Mark Hoplamazian said the hotel company is thinking holistically, and not just about immediate cost savings, in deciding whether to change its group commission structure.

At the end of March, Marriott cut commissions paid on North America group bookings from 10% to 7% across its brands. Hilton will do the same on Oct. 1.

Hyatt still pays 10% commission on group bookings.

"There's an economic reality," Hoplamazian said in an interview at the World Travel & Tourism Global Summit. "The issue for us is not to just treat it as a cost issue and say we'll follow because it will have a reduction in this line item on our P+L. We are thinking about it more holistically. What is the whole value equation? What is the net bottom line result of how we go to market? That may or may not look like what Hilton and Marriott have done."

Hoplamazian said that group bookings are "a big and important piece of the puzzle for us," with group business in the United States generating more than 40% of total room revenue. He called meeting planners and travel agents "really important partners."

"We're not just going to focus on the cost of delivery," Hoplamazian said. "We're going to think about the total net impact of the revenues that we're generating."

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