Allotment

Definition

A block of rooms a hotel pre-allocates to a partner (tour operator, wholesaler, or corporate account) to sell on their own, usually at a contracted rate, with a release / cut-off date by which unsold rooms return to the hotel.

What it tells you

How much inventory is committed away from live sale, and how much of it the partner is actually converting. An allotment that consistently goes unsold ties up rooms you could have sold higher.

How to track it

Monitor pickup against each allotment, the release date, and the wash factor (the share that actually materializes). Renegotiate or cut allotments that wash out heavily season after season.

Where it fits

Allotment is a group-and-contract tool: it secures base volume in advance, traded off against the flexibility and yield of selling those rooms transient.