Attrition clauses: outstanding issues and recommendations for meeting planners [An article from: International Journal of Hospitality Management]

This digital document is a journal article from International Journal of Hospitality Management, published by Elsevier in 2005. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
This paper deals with the attrition clauses within hotel group sales agreements, the former of which became popular in the early 1990s. Attrition clauses specify pre-determined liquidated damages that a group (usually a corporation or an association) must pay to the hotel in case the group does not pick up a certain percentage of its room block. Attrition charges may also apply to food and beverage agreements as well as to meeting facilities. Given their complexity, attrition clauses have become one of the least understood and most contentious issues in the hospitality industry. Based on the findings from a survey of 20 hotel room managers and five meeting planners, as well as what we learned from an extensive search of the literature, we outline some of the outstanding issues and then offer recommendations for meeting planners to protect the interests of their clients.