Attrition

A contract clause charging you if you use fewer hotel rooms or catering covers than you committed to.

How it works in practice

Hotels and venues price a contract on the assumption that you will use what you commit to. The attrition clause sets how far below that commitment you can fall before you pay for the difference. It applies to room blocks and, in many contracts, to food and beverage as well.

Attrition is usually expressed as a percentage you must reach (pickup), and it is measured on cumulative room nights rather than on each night. Some contracts let the hotel credit you for rooms it resells; many say they will try but do not promise. Read the exact wording.

Worked numbers

A block of 50 rooms for two nights at a $289 group rate, with 80% attrition:

Some hotels charge attrition at the room rate less an allowance for costs they avoid; others charge the full rate. Ask which applies before signing.

How to handle it

1. Size the block on history, not hope. If last year 60 guests booked, do not commit to 100.
2. Negotiate the percentage. In our experience, 80% is a common opening position and there is often room to move.
3. Ask for one or more review dates when you may reduce the block without penalty.
4. Ask that rooms booked by your guests outside the block, at any rate, count toward pickup.
5. Ask for resale credit in writing.
6. Track pickup weekly from the hotel’s report and release rooms at the review date if numbers are soft.

Questions to ask

• Is attrition measured per night or cumulatively across the block?
• Does F&B attrition apply to the F&B minimum, the per-plate guarantee, or both?
• Can we switch to a courtesy block with no attrition instead?

For weddings and small social events in Toronto, a courtesy block is usually the better answer. The rate may be slightly higher, but nobody is on the hook for empty rooms.