7 Valuable Tips when Negotiating Attrition & the Cut-off Date
In the hotel contract for offsite meetings there is an Attrition Clause & Cut-Off Date. Attrition is the option you have to reduce guest rooms and meeting participants by a certain %, by a certain date known as the Cut-Off Date, to avoid paying for rooms you do not need.
PRE or POST PANDEMIC, negotiating attrition, isn’t difficult. Asking the right questions helps you obtain the best Attrition Clause & Cut-Off Date for your organization.
For example, you reserve 50 rooms per night. Attrition is 25%, which means you can reduce 50 rooms by 25%, and now you only are responsible for 38 rooms instead of 50, as long as you let the hotel know of this reduction by the Cut-Off Date.
Here 7 Valuable Tips when Negotiating Attrition & the Cut-off Date:
- Pay close attention to the Cut-Off Date or deadline date you have to reduce the number of guest rooms to avoid paying attrition (paying for rooms you do not need).
- Typically, the Cut-Off Date is set at 30-days prior to arrival as the final date you can reduce guest rooms (to avoid paying for those rooms you do not need); the same date your rooming list is due.
- Ask for a Cut-Off Date at 21-days prior to arrival, or 14-days prior to arrival (rather than the standard 30-days prior to arrival) to give you more time to adjust numbers & submit your rooming list.
- Request the highest % attrition when negotiating a contract, such as 25%. Typically, hotels offer 10% attrition yet everything is negotiable! The more wiggle room you have (highest % attrition) to release rooms you do not need the better.
- In the Attrition section of the contract include the % amount AND numerical room nights such as, 25% or 38 room nights next to the Cut-Off Date. At any time prior to arrival, you will know exactly how your guest room count is progressing to fill those contracted rooms, and by what date you have to reduce rooms.
- And, always ask Attrition is calculated on total contracted guest rooms, not on guest rooms per night.
- In every contract include a Re-Sell clause; “if X Hotel is sold out on X dates X Hotel will release X Corporation from attrition for guest rooms X Corporation did not need. This insures you are not paying for rooms you did not need, if the hotel sells those rooms to other guests on the nights you are there.
Every hotel in every city negotiates the contract on a group-by-group basis, looking closely at the amount of revenue your group will generate over the dates of your meeting. A contract can be looked at by what you MUST HAVE, NEED TO HAVE, and WANT TO HAVE. Know what is negotiable, and what is not to help you select the right hotel for your meeting group.