Group Room Block Attrition Calculation

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.

Group room block attrition calculation.

This method looks at only the group s rooms commitment and assumes that when a room is empty the hotel. 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. Base attrition on the total number of guest rooms booked for the duration of the event not rooms reserved for each day. Industry veterans like to debate 3 different ways to calculate attrition each of which has its own proponents.

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. A lost profits percentage of the room rate for each unused room in the group s block. You work very hard to gauge attendance and have gone through the site selection process to contract the best hotel. Now you need to home in on an appropriate room block.

If you have a 20 attrition allowance you can drop 40 room nights without penalty. Now we re getting into the more advanced lingo. This type of attrition is based on the total room pickup for the room block. 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.

However only 13 rooms are booked by your guests and your contract states that your attrition rate is 75. If you fall short of picking up 160 room nights then you will pay an attrition penalty on the difference. 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. Attrition rate refers to the percentage of rooms that must be filled in order to avoid paying a penalty.

For example let s say you make a block of 20 rooms for your wedding. Cumulative attrition our next preferred attrition clause would be the cumulative attrition. The percentage method. 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.

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. 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.