SOP For Group Travel Agent Commissions

SOP Number: Finance and Accounting – 30

Department: Accounts Payable

Date Issued: 8-Aug-2021

Time to Train: 28 Minutes

Purpose of Group Travel Agent Commissions:

On a selected bass a Group Travel Agent Commission may be paid to an individual, company or third party who provided the hotel with paid group room business. The Director of Sales is responsible to obtain approval in advance from the General Manager for the payment of a group commission.

Group Travel Agent Commissions SOP Procedures:

1. The General Manager must approve the commissionable booking based on profitability in advance. This commission is payable on consumed room rate ONLY, not food and beverage.

2. This commission will be coded to the appropriate Rooms Department Expense Account, not netted out of group room rate.

3. The commission will be paid from the operating account. To release the check, the entire group function bill must be paid.

4. The check request from the Director of Sales should include the correct Group Room Pick-up Reports and a copy of the Sales Contract that states the group was commissionable.

Note: Group commissions are deducted from the Group Room Revenue when calculating any incentive or bonus award.

Training Summary Questions:

Q1. Who is responsible to obtain approval in advance from the General Manager for the payment of a group commission.?

Q2. To which account will this commission be coded?

Q3. From which account will the commission be paid? 

Q4. What should not include in the check request from the Director of Sales?