Attrition

1 May 2004

Attrition is the shortfall of sleeping room block pickup or food and beverage projections from the pre-determined numbers agreed to in the terms of a facility's contract with an event organizer, often resulting in monetary penalties and/or loss of amenities (complimentary space, guest rooms, etc.) as this deficit reaches specified performance thresholds. This represents a financial liability for the event organizer who does not take proactive steps to ensure that attendees are booking rooms at the contracted facility within the room block, and that food and beverage projections are attainable. Attrition clauses in facility contracts should be carefully reviewed and aggressively negotiated.