Attrition Clause

Hotels hold group rooms off the market, so they protect themselves against shortfalls with attrition. A typical clause lets the group reduce its block by an agreed percentage, often around 10 to 20 percent, without penalty. Below that threshold the group pays for the gap, sometimes at the full group rate and sometimes based on the hotel’s lost profit, depending on the wording. Food-and-beverage minimums work the same way for catering.

Several terms soften the risk. A resale clause credits the group for rooms the hotel manages to resell. Review dates let you shrink the block before penalties apply. Cumulative rather than night-by-night calculations allow for fluctuation, and counting attendees who booked outside the block, by matching the hotel’s guest list against registrations, protects your numbers.

Attrition is distinct from cancellation, which applies when the whole event is called off. Read both sections alongside force majeure before signing. Our guide to planning an international offsite covers contract basics.