Group Attrition Clause Calculator
Work out the allowed minimum, shortfall room nights and attrition charge for a group block, and copy a ready attrition clause for your contract.
How to use the free Group Attrition Clause Calculator
- Enter your figures in the fields above – use real numbers from your PMS, channel manager or accounts.
- Tap the button to see the result instantly. Change any value to compare scenarios.
- Copy, print or save the result and use it in your daily or monthly review.
This Group Attrition Clause Calculator runs fully in your browser on mobile or desktop – no sign-up and nothing is uploaded. Free group attrition calculator for hotels. Get allowed minimum, shortfall nights and attrition charge by full rate or lost profit, plus a sample clause.
What an attrition clause does
When a hotel blocks rooms for a conference, tour group or wedding, it turns away other business on those dates. An attrition clause protects the hotel if the group uses fewer rooms than contracted. The organiser is allowed to drop a fixed percentage of the block, commonly 10% to 20%, without penalty. Below that floor, the group pays for the shortfall.
Shortfall = Allowed minimum − Actual room nights picked up
Attrition charge = Shortfall × Group rate (× Profit margin % for the lost-profit method)
Full rate or lost-profit method
Some contracts charge the full group rate for every room night short. Others charge only the profit the hotel lost, because an empty room also saves housekeeping, laundry, amenities and power. If the variable cost per occupied room is about 30% of the rate, the profit margin is about 70%. The lost-profit method is easier for organisers to accept and usually holds up better in a dispute.
Example: 100 room nights contracted at ₹5,500 with 15% attrition gives an allowed minimum of 85. If the group uses 72, the shortfall is 13 room nights. The full-rate charge is ₹71,500; at a 70% margin the lost-profit charge is ₹50,050.
Writing a fair clause
- State contracted room nights, the rate, the attrition percentage and the cut-off date in one place.
- Measure pickup on cumulative room nights, not on the peak night alone, unless you agree otherwise.
- Credit rooms you manage to resell on the same dates, so the group never pays twice for one room.
- Agree when the bill is raised and how taxes apply. Ask your CA how GST applies to retention or attrition charges.
- Keep a signed rooming list and daily pickup reports as proof.
Plan the group before you sign
Check whether the group is worth taking with the group displacement calculator, price the full package with the group booking quote calculator, and track daily pickup with the pickup report generator. The clause produced here is a starting template; have your legal adviser review it before you use it in a contract.
Frequently asked questions
What is a normal attrition allowance for hotel groups?
Many hotels allow 10% to 20% of contracted room nights to be dropped without charge. Smaller blocks or peak dates often get a lower allowance. It is a commercial term you agree with the organiser.
Should the hotel charge the full rate for unused rooms?
Not always. The lost-profit method charges only the margin the hotel lost, because empty rooms save variable costs. It is fairer and easier to defend, while the full-rate method is simpler to calculate.
Are rooms resold to other guests deducted from the attrition charge?
In a fair clause, yes. If the hotel resells some released rooms on the same dates, those room nights are credited so the group does not pay for rooms that earned revenue.
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