Attrition refers to the reduction in the number of rooms or room nights actually booked or used compared with the amount originally committed under a group agreement. Depending on the contract, attrition clauses may define how much a group can reduce its room block without incurring a penalty.
How It Works
When a hotel contracts a room block for a group, the agreement may specify an allowable attrition percentage. This gives the group some flexibility if fewer attendees need accommodation than originally expected.
If the group’s actual pickup falls below the contractual threshold, the hotel may be entitled to apply an attrition charge, subject to the contract’s terms and applicable law.
The calculation method, measurement dates, allowable reduction, and any penalties vary by agreement.
Practical Example
A hotel contracts a group block of 100 room nights. The agreement permits a 20% reduction without an attrition penalty.
Allowable Reduction = 100 × 20% = 20 room nights
Minimum Room Nights Under the Allowance = 100 − 20 = 80 room nights
If the group books 85 room nights, it remains within the illustrative allowance. If it books only 70 room nights, the shortfall exceeds the 20-room-night allowance, and the hotel may assess a charge if the contract permits it.
How to Interpret Attrition
Attrition provisions help hotels manage the risk of holding inventory that a group ultimately does not use. They also give organizers a defined level of flexibility when attendance or accommodation requirements change.
Revenue managers and group coordinators should review attrition clauses carefully, including how room nights are counted, when pickup is measured, and whether released rooms can be resold. A reduction in room nights does not automatically result in a penalty; the signed agreement determines the applicable conditions.
Related Terms
Group Reservations · Room Block · Rooming List · Cutoff Date · Open Group Block · Closed Group Block · Wash Factor · Displacement Analysis · Room Inventory