Attrition in Hotel RFPs (Plain English Definition + Examples)

Definition

Attrition is the contracted percentage of unused rooms in a group block that the planner is NOT charged for. Typical European contracts allow 10-20% attrition; US contracts more often 80-90% performance (i.e. 10-20% slippage). Anything over the attrition threshold becomes a financial penalty.

In day-to-day European event sourcing, attrition 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 matters

Attrition is the #1 financial risk in hotel contracts. A 200-room block booked at €189 with only 10% attrition allowance and 30% slippage means the planner pays for 40 extra unused rooms — €22,680 of pure loss. Negotiating attrition up by 10 points typically saves more money than any rate discount.

The practical takeaway: planners and procurement teams who get attrition right typically see measurable improvements in either cost, risk exposure, or cycle time — sometimes all three. Teams who default to the supplier's standard language usually leave 5-15% of total event value on the table, often without realizing it. The skill is recognizing attrition when it appears, knowing the market-standard range, and treating any deviation from that range as a negotiation point — not a take-it-or-leave-it.

Example

Contract: 100-room block, €200/night, 3 nights, 20% attrition allowance. Actual pickup: 70 rooms (30% slippage). Allowance covers the first 20 rooms; the remaining 10 rooms × 3 nights × €200 = €6,000 in attrition damages charged to the planner.

This example is representative of mid-to-large European corporate MICE — pharma, finance, tech, professional services. Smaller events (under 50 attendees) and very large events (1,000+) often follow different conventions, but the underlying logic of attrition stays the same. The numbers move, the principle doesn't.

Where Attrition appears in contracts

Attrition appears in the Performance Clause of the hotel contract, usually alongside a Resell/Avoidance Clause that allows the planner to reduce attrition damages if the hotel can resell the unused rooms.

When reviewing a hotel proposal or contract draft, scan for attrition early — it's often easier to negotiate before the supplier has anchored on their preferred position. Easy RFP surfaces these terms in every comparison view so planners can spot deviations from market-standard ranges at a glance, rather than reading 14-page proposals line by line.

Related terms

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