An allotment is a fixed number of rooms reserved for a specific partner (such as a tour operator
or wholesaler) for a defined period. It provides predictable base demand but limits inventory
flexibility.
Why it matters:
While allotments reduce demand risk, they can also prevent hotels from selling rooms at higher
rates if not actively managed and released in time.
Practical use:
Hotels set release periods for allotments to return unsold rooms to general inventory before
high-demand dates.
Real-life examples:
A resort blocks 40 rooms for a tour operator in peak season, but late release of unused allotment
prevents selling those rooms at premium last-minute prices.
