Hotels should evaluate third-party planners' commissions

ince the Ritz-Carlton Hotel Co. recently decided to reduce its commission payment to some independent meeting planners, there's been much discussion about it on Internet listservs, discussion boards and in meetings trade publications.

There has been a significant increase in the use of independent planners by companies and associations during the past several years to quicken the meeting-planning process. Some of these independent companies provide full-service meeting planning activities, while some do only site selection on behalf of their client, the meeting-sponsoring organization. Many of these third-party meeting planners require a commission payment of 10 percent of room revenue generated to the hotel that is selected.

Ritz-Carlton management has reported that those independent companies providing only site-selection services now will be paid 3-percent commission instead of 10 percent.

A question arises: Should any third-party planner be...