An allotment is a block of rooms the hotel holds for an intermediary or group under agreed terms. Tour operators and agencies sell them until a release date and return what is unsold. It gives guaranteed volume in exchange for handing over inventory.
Example A tour operator holds an allotment of 20 rooms each summer night, released ten days out.
An allotment is a block of rooms that a hotel sets aside for an intermediary, such as a tour operator or travel agency, under agreed terms.
How does an allotment work?
The intermediary sells those rooms until a release date specified in the contract and returns any unsold rooms to the hotel at no cost, which gives the hotel a guaranteed volume in exchange for inventory access.
What is the purpose of an allotment and how is it different from a confirmed booking?
An allotment allows the intermediary to secure room availability without paying upfront, unlike a confirmed booking where the guest has already paid and the room is definitively held.
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