Attrition Clause

Category: lifestyle

A contract provision setting a minimum percentage of guest rooms or meals the client must book to avoid financial penalties.

Common in resort block bookings, an attrition clause might state that the client must fill 80% of the reserved block. If they hold 20 rooms but guests only book 10, the client must pay the room rate difference out of pocket to compensate the hotel for held inventory.

Common Examples

• The hotel invoked the attrition clause because our wedding party only filled half of the blocked sleeping rooms over the weekend.
• When negotiating a destination room block, planners strive to lower the attrition clause percentage to cap the client’s liability.