What is the meaning / definition of Allotment in the hospitality industry?
The term Allotment is used in the hotel industry to designate a certain block of pre-negotiated rooms which have been bought out and held by a third party (such as a travel organiser, wholesaler, tour operator, hotel consolidator, travel agent, ota).
Allotments can be contracted with a tour operator or an OTA for a specific period of time such as a whole season, part of a season or for any single dates and then resold to travel partners and final customers around the globe. A couple of days prior to guest arrival any unsold rooms may be released back to the supplier if such an agreement exists between the two parties. An allotment release back period is also negotiated as part of the allotment contract (e.g. four days prior to arrival). This frame of time is called release period or cut off date.
Allotments can be flexibly managed via an extranet or channel manager.
See also:
- Inventory
Synonyms:
- Allotment
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