Hotel Attrition for Dummies: What It Is and How to Avoid Getting Burned

Nataly Horan
Apr 21
2 min read

If you're planning a group trip, conference, or incentive program and you're working with hotels, there's one word you need to understand before you sign that contract:

Attrition.

It sounds harmless. Maybe even boring. But don’t be fooled... attrition is the sneaky clause that can blow up your budget if you don’t pay attention.

Let’s break it down, dummy-proof style.

💡 What is Hotel Attrition?

Attrition is a fancy word for “you’re on the hook.”

When you book a block of hotel rooms for a group, you’re asking the hotel to set those rooms aside just for you. That means they can’t sell them to anyone else.

So, to protect themselves, hotels often include an attrition clause, which says:

“If you don’t fill at least [X]% of the rooms you reserved, you still have to pay for the empty ones.”

In other words: you commit to using a certain number of rooms, or you pay the difference.

🧮 A Quick Example

Let’s say you block 100 rooms per night.

The contract has an 80% attrition clause.

This means:

You only need to fill 80 rooms per night to meet your obligation.
If you only fill 60, you’re short 20 rooms.
You’ll be charged for those 20 empty rooms, usually at the agreed group rate.

Yikes.

🤷‍♀️ Why Do Hotels Do This?

Simple: They’re running a business. If they set aside 100 rooms for your group and you only use 60, they likely lost the chance to sell those 40 rooms to someone else. Attrition ensures they’re not left holding the bag.

✍️ What to Watch for in the Contract

Here’s what you want to look at carefully:

Attrition Percentage
- Typically ranges from 80–90%. Lower is better for you.
Calculation Method
- Is attrition calculated per night, or over the full stay? (Total is better—it gives you more wiggle room.)
Mitigation Clause
- Can the hotel resell unused rooms to offset your penalty? Make sure this is in there.
Slippage Date
- This is the cutoff date when you can reduce your block without penalty. Know it, use it.

🛠 How to Protect Yourself

Negotiate the attrition rate. Aim for at least 80%, but go for 70% if you can swing it.
Ask for attrition to be calculated cumulatively. It gives you more flexibility over multiple nights.
Include a resell clause. If the hotel fills your unused rooms with other guests, you shouldn’t be penalized.
Forecast wisely. Don’t overcommit. Be conservative when estimating your room needs.
Track your pickup. Monitor reservations closely so you can adjust before the cutoff.

✅ Pro Tip

Attrition isn’t evil. It’s just misunderstood. When managed well, it can be totally fair for both parties. The key is understanding your group, reading your contract (or better yet, hiring someone who does), and communicating early and often with your hotel partner.

Bottom line?

If you’re booking rooms for a group, attrition is real—and ignoring it could cost you thousands. So read the fine print, know your numbers, and don’t be afraid to negotiate.

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