Attrition Percentage in Hotel RFPs (Plain English Definition + Examples)

Definition

Attrition percentage is the negotiated threshold below which the planner does not pay attrition fees — typically expressed as 'X% of contracted block', with 80% being the market default and 90-95% a strong negotiated outcome.

In European MICE sourcing, attrition percentage sits inside a broader workflow that includes the brief, the longlist, the shortlist, the contract negotiation, and the post-event reconciliation. Understanding it in isolation is not enough — what matters is how it interacts with the other levers a planner can pull. The definition above is the textbook version; the sections below explain how it actually behaves in real RFPs.

Why Attrition Percentage matters

Every 5-point shift in attrition percentage moves real money. On a 200-room × 2-night × €189 ARR block, lifting attrition from 80% to 90% moves the no-fee threshold from 160 to 180 rooms — and saves up to €7,560 if pickup lands in that band. This is the single most-negotiated number in MICE contracts.

Example

Contracted 200 rooms, 90% attrition negotiated. Pickup 175 = 87.5%. Below threshold by 5 rooms. Attrition fee = 5 × 2 × €189 = €1,890. Same scenario with 80% attrition: pickup of 175 is above threshold = €0 fee. The negotiation paid for itself.

Where Attrition Percentage appears in contracts

In the attrition clause of the hotel contract, usually with three sub-terms: the percentage, the basis (room nights vs revenue), and the fee formula. Always negotiate all three together.

Related terms

Deeper reading