The conversation around venue sourcing commissions has often focused on numbers: how the commission structure works, referral fees, and the logistics of payment. However, there’s a deeper story that often gets overlooked—the human impact. For many of us who rely on commissions from meetings and events, this isn’t just about percentages; it’s about supporting our families, reinvesting in our businesses, and moving our careers forward.
Even before the pandemic, the hotel industry began to shift its perception of third-party agencies. Major hotel chains, including Marriott, decided that the work we do wasn’t worth the standard 10% commission on hotel rooms and event bookings in the U.S. and globally. On March 31, 2018, Marriott made the decision to reduce their commissions to 7%, and it wasn’t long before Hilton, IHG, and other major brands followed suit. This created a ripple effect, making it difficult for us to offer a fair playing field for our clients and harder to maintain a stable business model.
For those who aren’t familiar, here’s how third-party agencies operate:
We take on clients in need of venue sourcing for their events, typically without charging them. We use our expertise, tools, and connections to send out Requests for Proposals (RFPs) to multiple venues. Once we receive proposals, we compile side-by-side comparisons, work with the client on selecting the best option, and negotiate contracts on their behalf. Our payment? It doesn’t arrive until the event happens, and even then, it can take an additional 45 days to receive the commission—if everything goes smoothly.
And here’s the kicker: for many agents, the company they work for takes 50% of their commissions to cover overhead costs. So while we are the ones doing the heavy lifting, sourcing venues, negotiating terms, and ensuring client satisfaction, we are also the last ones to see financial rewards.
Then came the pandemic.
For those of us working on commission, it was the worst of times. As the world shut down, events were canceled, moved, or downsized. Contracts had to be renegotiated, creating even more work for agents, often with little to no commission payout. Many of us were left with nothing after years of hard work, and many skilled professionals left the industry altogether.
When the world started to reopen, it seemed like things were looking up—clients were booking again, and the pace was picking up. But with political tensions, unpredictable weather, and other external factors, we’re finding ourselves in familiar, precarious territory.
Just last week, we had to invoke a force majeure clause due to Hurricane Milton in Clearwater, Florida. This was the second time in two years for the same client, location, and hotel—Hurricane Ian hit in 2022. The hotel will recover, and the client gets their money back, but what about the agent who orchestrated everything? What about their finances? What happens to the person who poured countless hours into making that event a reality?
This isn’t a problem with a simple solution, but we have to start the conversation. At virsitour , we are working to make the sourcing process easier and better for agents and planners alike. By streamlining the process and reducing the time, money, and travel needed for venue sourcing, we aim to free up agents to focus on bigger, more lucrative opportunities for their clients.
As agents, we save our clients time and money—why don’t we do the same for ourselves?
Let’s open this discussion and push for change in our industry. It’s time for our hard work to be valued, not just by clients but by the entire event ecosystem.