Understanding Hotel Attrition Rates—and How to Beat Them
Your contract says “80% attrition required.” What does that actually mean—and what happens if you don’t meet it?
What Is a Hotel Attrition Rate?
The attrition rate defines the percentage of the room block you’re required to fill—or pay for. An 80% attrition rate on a 200-room block means you’re on the hook for at least 160 rooms.
How Attrition Fees Are Calculated
Let’s say you fill only 120 rooms:
- Contracted: 200
- Required (80%): 160
- Actualized: 120
- Shortfall: 40 rooms
- Attrition Fee: 40 x room rate
Why This Happens
Planners often overestimate attendance or deal with unforeseen drop-offs. Unfortunately, hotels rarely care about your reasons—just the math.
Ways to Minimize or Eliminate the Risk
- Negotiate Lower Rates: Ask for 70–75% attrition upfront.
- Include a Wash Clause: Adjusts based on actual pick-up closer to the event.
- Talk to Us: If you’re already short, we can renegotiate immediately.
Protect Your Event Budget Now
Don’t let attrition penalties ruin your event ROI. Contact HotelAttrition.com for a free consultation. We’ll review your contract, renegotiate fees, and save you thousands.