👉 A Guaranteed Allotment is a block of rooms reserved for a partner under contractual guaranteed conditions. As the name suggests, it is guaranteed, whether prepaid or not, and whether or not a release clause applies.
📘 What are guaranteed alloment?
They are a type of allotment in which the hotel and the partner (usually a tour operator) agree on guaranteed conditions for that inventory.
These guarantees may include:
- Payment even if the rooms are not sold,
- A minimum production commitment,
- Or release conditions after which the hotel can recover the inventory.
The key point is not just payment, but that there is a contractual obligation attached to the allotment.
Guaranteed allotments provide greater revenue security for the hotel than standard allotments, though with less operational flexibility.
✅ Why are guaranteed alloment important?
Because they reduce uncertainty and allow the hotel to:
- Plan occupancy more effectively.
- Make pricing and distribution decisions on a more stable basis,
- Forecast revenues more reliably,
💡 Practical example of guaranteed alloment
A tour operator contracts 10 rooms per day for the entire season:
- Or there may be a 14-day release after which unsold rooms return to the hotel.
- While within the agreement, this inventory is contractually guaranteed,
- They may pay for all rooms whether sold or not,
🔄 Disambiguation of guaranteed alloment
- Allotments: A standard allotment can be flexible and without guarantees. A guaranteed allotment is an allotment backed by contractual conditions.
- Guaranteed Allotments: These have a contractual obligation (payment, production, or release conditions). Standard allotments merely organise availability without commitments.
In short: Guaranteed Allotments = inventory blocked under contractual guaranteed conditions, whether prepaid or not, with or without release.
