Attrition

Definition

In a group contract, attrition is the share of the blocked rooms the organizer may release without penalty — and the clause that charges for anything beyond it. A 100-room block with a 20% attrition allowance can shrink to 80 rooms free of charge; below that, the group pays for the shortfall.

What it tells you

Attrition is the contractual answer to wash. Wash factor forecasts how much of a block won’t materialize; the attrition clause decides who carries the cost when it doesn’t. A block with a generous allowance and late cutoff dates deserves more cautious displacement math than a guaranteed one.

How to track it

Fixed in the group contract: the allowance percentage, the review and cutoff dates, and the damage basis (typically per unused room night, at or near the contracted rate). Track each block’s pickup against its cutoff dates so unneeded rooms are released back into inventory on schedule — not at arrival.

Where it fits

The commercial hinge between sales and revenue on group business: sales negotiates the attrition terms, revenue prices the risk those terms leave with the hotel.