The Confusion Around Hotel Blocks

There’s a lot of confusing terminologies that get thrown around when it comes to hotel blocks. Attrition? Guaranteed Blocks? Courtesy Blocks? You probably have never had to reserve hotel blocks before so I’ll give you the low down on the different options that may be available to you!

There are two different types of hotel blocks: Guaranteed and Courtesy. Guaranteed blocks reserve a certain number of rooms that you agree will be paid for in full or a percentage of the nightly rate. The percentage of the nightly rate you would be responsible for covering is called the attrition rate. You want to try to avoid this kind of room block if possible. Hotels in certain cities have a high demand for rooms and will sell out every night. This may be the only way you are able to be certain all of your guests will have a place to stay. Therefore, they are forced to offer you a guaranteed room block to make sure they are able to sell out as usual. The other type of block is called a courtesy block or can sometimes be referred to as an open block. This block of rooms will be held for your guests up to a certain date for a specific rate (don’t expect a discount will be offered with this type of block). After the contracted date, the unbooked rooms will be released to the public.

If you have guests with varying budgets, you may want to consider offering two hotel blocks at two different price points. I would suggest reserving no more than three hotel blocks as things can get complicated and if guests are worried about the price or quality of a hotel they may even go off on their own and book a room to ensure they stay exactly where they are comfortable.