An attrition fee is a charge a hotel or resort applies when a group, conference or event booking uses fewer rooms (or less food and beverage) than the minimum agreed in the contract. The group contract usually allows the organiser to release a set share of the room block without penalty; any shortfall beyond that allowance is billed, often at the agreed group rate. The fee compensates the hotel for rooms it held back for the group and could no longer sell. Unlike a cancellation fee, it applies when a block shrinks, not when a booking is cancelled outright.
What is an attrition fee, and when is it applicable?
An attrition fee is a charge imposed by hotels when a group booking fails to meet the agreed-upon minimum room block or reservation commitment.
How can I avoid paying an attrition fee for my hotel reservation?
To avoid paying an attrition fee, it's essential to carefully review the terms and conditions of your group booking contract, ensure accurate attendance estimates, and communicate any changes or cancellations promptly to the hotel. Additionally, negotiating flexible terms with the hotel can help mitigate potential attrition fees.
