The Ambiguity of "Run-of-House"
One of the most common terms in a group contract is "Run-of-House" (ROH). This doesn't refer to a specific room type but instead means your guests will be assigned whatever room is available at check-in. While this can offer a discounted rate, it also
means a lack of control; guests could get anything from a basic room to a suite, depending entirely on hotel availability that day. For groups where consistency is important, or for VIPs who expect a certain standard, an ROH booking can introduce unwelcome surprises. Hotels use ROH to maximize their occupancy, but planners must weigh the cost savings against the potential for inconsistency across their block.
Understanding Attrition Clauses
Perhaps the most critical contract term to understand is the attrition clause. This provision outlines the financial penalty you will pay if your group fails to book a minimum percentage of the reserved rooms. For example, a contract for 100 room nights with an 80% attrition clause means you are financially responsible for 80 of those nights. If your group only books 70, you'll likely have to pay for the 10-night shortfall. Hotels include these clauses to protect themselves from the lost revenue of holding rooms that ultimately go unsold. Negotiating this percentage—often between 10% and 20%—is one of the most important steps in protecting your budget.
The Critical Cut-Off Date
Every group booking contract specifies a "cut-off date." This is the final day for your attendees to book rooms at the negotiated group rate. After this date, any unbooked rooms in your block are released back into the hotel's general inventory to be sold to the public, often at a much higher price. This deadline serves two purposes: it creates urgency for your guests to make their reservations, and it allows the hotel to manage its inventory effectively. Missing this date not only means your late-booking guests may pay more, but the hotel is no longer obligated to hold any rooms for your group, potentially leaving some attendees without a place to stay.
Mastering the Rooming List
Once bookings start coming in, the rooming list becomes your central command document. This is more than just a list of names; it's a detailed roster given to the hotel that includes guest information, specific room types (if not ROH), check-in and check-out dates, and any special requests. A well-managed rooming list is essential for a smooth check-in process and ensures all guest needs are communicated. The process typically involves collecting all attendee reservations and submitting the finalized list to the hotel just before the cut-off date. Any inaccuracies can lead to confusion and delays upon arrival, making clear communication between the planner and the hotel vital.
Contracted vs. Courtesy Blocks
Finally, it's important to know what kind of room block you have. There are two main types: a courtesy block and a contracted (or guaranteed) block. A courtesy block is a low-risk arrangement where a hotel holds a small number of rooms for your group until the cut-off date without financial penalty. If the rooms aren't booked, they are simply released. In contrast, a contracted block is a formal agreement where you are financially liable for filling a certain percentage of the rooms, as dictated by the attrition clause. While contracted blocks often come with better rates and are necessary for larger groups, they carry significant financial risk if your attendance numbers fall short.
