TORONTO — Hilton Hotels & Resorts is reportedly cutting commissions on group bookings, following competitor Marriott’s lead.

The move takes effect Oct. 1, 2018 and drops the commission rate from 10% down to 7%.

Hilton’s properties in both Canada and the U.S. are impacted.

Numerous media reports quote Danny Hughes, Hilton’s Senior VP and Commercial Director, Americas as saying Hilton’s decision is based on “growing group distribution costs and the complexity of intermediary services.”

He adds that the cut “will allow our owners, over time, to make further investment in products and offerings that enhance the guest experience.”

Marriott was the first to cut group booking commissions, announcing in January that it was dropping the rate from 10% to 7% effective March 31.

Agency groups including ACTA and ASTA railed against the move.

A statement from ACTA President Wendy Paradis said: “Travel agencies play a vital role in the group travel business and we are disappointed that Marriott has chosen to find cost savings through travel agency commission reductions.”

And in the U.S., ASTA President and CEO Zane Kerby said: “In our view, a 30% cut in intermediary compensation diminishes the value of the role agents play in this complex and ever-changing industry.”

This isn’t the first time the hotel companies have followed each other and it no doubt won’t be the last. In June 2017 Marriott was the first to tighten up its cancellation-with-fee policy to a 48-hour window. Hilton fell in line in July 2017 and Hyatt followed in January 2018.