In hotels, an allocation is the number of rooms a hotel assigns to a specific distribution channel, partner or market segment for a set period, for example a share of inventory for an online travel agency, a wholesaler, a corporate client or a group. Revenue managers decide how many rooms each channel may sell, so that the hotel fills its rooms with the best possible mix of rates. The term is also used for room allocation: assigning a specific room number to a reservation before the guest arrives.
What is the difference between an allocation and an allotment?
The two terms are often used interchangeably. Strictly, an allocation is any share of inventory set aside for a channel or partner, while an allotment is a contracted allocation: the partner sells the rooms itself, and unsold rooms return to the hotel at an agreed release date. An allocation to an OTA through the channel manager can usually be changed at any time; an allotment is fixed for the contract period.
How can hotels optimise their allocations?
Hotels review allocations against booking pace and the pick-up of each channel, move rooms from channels that do not sell to those that do, and set release dates so that unused rooms come back in time to be resold. The cost of each channel matters too: a room sold direct costs less than one sold through an intermediary. Regular checks against KPIs such as occupancy, ADR and RevPAR show whether the allocation is working. Quick, complete answers help turn more enquiries into direct bookings: in chatlyn, the AI answers routine questions on WhatsApp and the website chat and points guests to the hotel's own booking engine, while the team handles the requests that need a person.
