Hotels pay tremendous amounts of money to travel agencies and some corporate travel departments on commissionable room rates. The standard is 10 percent. Depending on contractual arrangements, travel management companies may pass all or part of those commissions to corporate clients. Or, they may keep them and charge customers lower transaction fees. Some even waive fees if their hotel revenues are robust enough.
That all makes the process sound simple, but getting hotels to pay commissions can be a huge pain. Helping TMCs and ARC-accredited Corporate Travel Departments with it is a cottage industry in itself. During the past . . .