Hotel Room Blocks At a Glance - Generally consist of 10 or more
hotel rooms.
- Useful for reserving hotel rooms for groups at a fixed, pre-negotiated rate.
- Courtesy
room blocks are more flexible, with no financial commitment, but typically have a booking deadline (reservation cutoff date).
- Guaranteed
room blocks require that a certain percentage of rooms will be booked in order to avoid a penalty(attrition). They may also
require a deposit to secure the room block.
- Room blocks are finalized by signing a Booking Agreement.
What is a Hotel Room Block?
A room block is a set
of hotel rooms that are held in advance at a fixed, negotiated rate. Whether you're in need of a group of hotel rooms for a team, school, meeting, special event, corporate retreat or simply
for leisure, the basics are the same. Once the group reservation is confirmed, your guests can either individually book their
hotel rooms as part of the group or a master bill can be created for a single transaction. Types of Hotel Room Blocks
There are two types of room blocks: Courtesy
and Guaranteed. A courtesy
room block is the most flexible option. There is no penalty for unused rooms. Instead the hotel will set a cutoff
date, after which any remaining unbooked rooms will be released from the block and made available for regular booking. Most
hotels limit courtesy blocks to 10 and 30 rooms. However, if you end up filling the allotted rooms and there is still availability,
you're usually able to add more rooms to the block. Some hotels may not be able to offer a courtesy room block, especially
during periods of high demand or if you need a large block. Depending on what you need rooms for, a courtesy room block could
be a great option for your group.
With a guaranteed room block, the hotel will require you to
guarantee that a certain percentage of the rooms (usually 70-90%) will be booked and utilized. This is called the attrition
rate. If the agreed-upon percentage of rooms is not utilized, the hotel will charge the difference in value for the unused
rooms. In some cases, the hotel will also require an initial deposit. If you're confident in the number of rooms that will
be booked, this is generally the best option for your group. (Hint: hotels are also more willing to offer deeper discounts
with the added assurance of a guaranteed room block.) Signing
a Booking Agreement
Once we have negotiated the terms, the hotel will ask you to sign a booking
agreement. The agreement ensures that
the hotel locks in your discounted group rate, and makes sure both parties agree to the negotiated terms.
ALWAYS pay attention to the hotel cancellation policy, fees (if applicable) and the inclusion of any amenities or concessions
your group requires. Expert Help Makes Group Hotel Booking Easy
Understanding how hotel room blocks work doesn't mean it's easy. Finding the right
hotels, playing phone or email-tag with sales managers, negotiating rates and terms and finalizing the room block
can be a very frustrating and drawnout process. That’s why we're here. American Group Adventures offers a
free service where we do the work for you with our vast contacts with National and Regional hotel management teams.
Our Travel Advisors are with you every step of the way to answer questions or offer recommendations. 
