Let’s Talk About Attrition – A Costly Mistake Many Planners Don’t See Coming

I can’t tell you how many times I’ve seen event planners blindsided by hotel attrition fees. They sign their contracts, focus on planning a great event, and then—bam!—an invoice arrives after the event, charging thousands of dollars for unused rooms.

One planner I worked with had a 200-room block for three nights at a major hotel. Everything seemed fine until she realized only 160 rooms were booked each night. She assumed she was okay because she “mostly filled” her block, but her contract had a strict 85% attrition requirement per night. That meant she was charged for 10 rooms per night at the full contracted rate—totaling over $12,000 in unexpected fees.

This happens all the time, and it’s why understanding how attrition clauses work—and how to negotiate them—is critical.

What Is a Hotel Attrition Clause?

A hotel attrition clause is a contract provision that holds event planners financially responsible if they do not meet their agreed-upon room block commitment. In simple terms, if you contract for 100 rooms and only 80 are booked, the hotel may charge a penalty for the 20 unbooked rooms.

Hotels justify this by saying they reserved those rooms specifically for your event, which prevented them from selling them to someone else. In reality? Most hotels have systems in place to release unused inventory, but if you don’t negotiate the right terms upfront, you’ll still be on the hook for those costs.

How Do Hotels Calculate Attrition Fees?

Most attrition clauses require planners to pay for unused rooms based on either:

1. Total Room Revenue – You pay a percentage of the revenue the hotel would have earned.

2. Room Nights – You must meet a minimum number of booked nights, or pay the difference.

Let’s break it down with real numbers:

• You contracted 100 rooms at $200 per night for three nights ($60,000 total).

• Your contract includes an 80% attrition allowance, meaning you must fill at least 80 rooms per night.

• If only 70 rooms per night are booked, you’re responsible for 10 unfilled rooms per night.

• The hotel may charge you the full room rate or a percentage (e.g., 75%) for those unbooked rooms, adding unexpected costs to your final bill.

That’s $200 per night x 10 rooms x 3 nights = $6,000 in fees!

This is money you don’t need to pay—if you negotiate smarter upfront.

The Three Biggest Mistakes Planners Make with Attrition Clauses

1. Not Negotiating a Realistic Attrition Allowance

Most hotel contracts start with an 85-90% attrition requirement, meaning you must fill nearly all the contracted rooms. This might work for a corporate event with guaranteed attendance, but for many social events or conferences, attendance can fluctuate.

I always push for a 70-75% attrition allowance—it gives planners breathing room while still protecting the hotel’s revenue expectations.

2. Confusing “Cumulative” and “Per Night” Attrition

Hotels love to use per night attrition clauses because they lock you into filling a set number of rooms each night. But here’s the problem: most attendees don’t arrive and leave at the same time.

For example, if your event runs Friday to Sunday:

• Attendees may check in Friday evening and check out Sunday morning.

• A per night attrition model means you’re penalized for fewer rooms booked on Thursday or Sunday night, even if your overall numbers are strong.

Instead, I always negotiate cumulative attrition, which allows room usage to be averaged over the entire event.

3. Ignoring the “Resell” Clause

Here’s a dirty little secret: Many hotels will charge you attrition penalties even if they resell the rooms you didn’t use.

Yes, you read that right.

If your contract doesn’t specifically say that the hotel must resell your unused rooms before charging an attrition penalty, they can legally double-dip—charging you and a new guest for the same room.

Always negotiate a resell clause that says:

✔ The hotel must try to resell unused rooms.

✔ You are only responsible for rooms they truly could not sell.

I’ve saved planners tens of thousands of dollars by simply adding this clause to their contract.

How to Reduce or Eliminate Attrition Fees

✔ Right-Size Your Room Block – Avoid overestimating how many rooms your attendees will need. Use past event data to set a realistic commitment.

✔ Negotiate a “Sliding Scale” Attrition Clause – Instead of a fixed percentage, request a tiered structure where penalties decrease as your booked percentage increases.

✔ Include a “Rebooking Credit” Clause – If you do owe attrition fees, negotiate to apply those funds as a credit toward a future event at the same hotel.

✔ Watch Out for Extra Fees – Some hotels sneak in attrition service charges—meaning you get hit with penalties plus administrative fees. Ask upfront if these exist, and get them removed.

Protecting Yourself from Costly Attrition Fees

I’ve seen too many planners sign contracts they don’t fully understand, only to get hit with massive attrition penalties after the event.

Here’s my advice:

✔ Negotiate a lower attrition requirement.

✔ Push for cumulative attrition instead of per night.

✔ Demand a resell clause that protects you.

Don’t assume the hotel’s contract is set in stone—everything is negotiable. The key is knowing what to ask for before you sign.

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