Allotment

Definition and subdivisions

The literal translation of the term is Allocation/Distribution.

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In the hotel industry, the term means, so to speak, a quota: It indicates the number of rooms in the case of a blocked booking (divided by days or room types, for example). These bookings are usually made by tour operators, travel agents, OTAs or event organizers.
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Two types of allotments

A distinction is generally made between two possible arrangements: retrieval or fixed quotas.

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At Retrieval quota The rooms in the hotel have been blocked in advance by the organizer. Each individual guest (for example a participant in an event) then books their own room under a keyword. After a return time agreed jointly between the organizer and the hotelier, the remaining rooms are removed from the quota and go on free sale.

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At Fixed quota The organizer books a fixed number of rooms in advance. The prerequisite must, of course, be that he knows the exact number of participants. This makes it easier for hoteliers to plan and price the remaining rooms.

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Benefits for both contract partners

The allotment or quota agreement reduces the risk of unsold rooms for the hotelier and gives the contractual partner (e.g. tour operator) a price advantage. This helps him to remain competitive on the market by being able to offer additional discounts.

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The price reductions that tour operators receive depend primarily on the size of the company and the negotiating potential of the contract partners. They can vary depending on the season, quantity and quality of the contracted services.

Outside the classic hotel industry, there are of course allotments in other areas of the travel industry as well. For example, seats on airplanes can also be booked in advance via quotas and thus blocked for an operator.

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