Group Room Block Attrition Calculation

Holiday inn central reservations.

Group room block attrition calculation. If the contracted room block is 100 rooms per night for 3 nights and attrition is 10 then you may lower your total room commitment to 270 room nights. For example if you have a block of 50 rooms per night for a four day event this counts as a cumulative 200 room block. This type of attrition is based on the total room pickup for the room block. Cumulative attrition our next preferred attrition clause would be the cumulative attrition.

A lost profits percentage of the room rate for each unused room in the group s block. It is also important to block a few rooms early and late so the group rate will be loaded in the central reservation system i e. As a refresher attrition is a term used describe when your actual room block pickup is less than what you contracted if you don t make your room block then you re in attrition the term also describes the amount of leeway a hotel offers you if you don t pick up your block as in you have 20 allowable attrition. Industry veterans like to debate 3 different ways to calculate attrition each of which has its own proponents.

A group should block rooms accordingly and never agree to room attrition holding the group responsible for more than 75 hopefully not more than 65. For example let s say you make a block of 20 rooms for your wedding. The percentage method. Base attrition on the total number of guest rooms booked for the duration of the event not rooms reserved for each day.

As a refresher attrition is a term used describe when your actual room block pickup is less than what you contracted if you don t make your room block then you re in attrition the term is also used to describe the amount of leeway a hotel offers you if you don t pick up your block as in you have 20 allowable. Avoiding room block attrition fees attrition fees continue to be the bane of existence for many organizations but especially in the smerf market said dunn o neal. However only 13 rooms are booked by your guests and your contract states that your attrition rate is 75. The only disadvantage is that most hotels will not offer you a courtesy room block if you need more than 30 or 40 rooms per night.

You work very hard to gauge attendance and have gone through the site selection process to contract the best hotel. For example if you have a block of 50 rooms per night for a four night event this counts as a cumulative 200 room night block. Once your courtesy room block is set up you can give out the group code to your guests who can book rooms at a discounted rate up until the cut off date where the rooms are released. If you have a 20 attrition allowance you can drop 40 room nights without penalty.

Now you need to home in on an appropriate room block. Attrition rate refers to the percentage of rooms that must be filled in order to avoid paying a penalty.