Hotel attrition clauses in room block contracts for convention and meeting groups have historically been standard policy. An attrition clause makes the booking entity pay for the rooms they book whether they use them or not.
Likewise, vacation home management companies have also had strict rental booking policies with regards to deposits and cancellations.
However, with the world economy crumbling at rapid speed, many companies and vacationers are hesitant to book a hotel or vacation home with a strict attrition/cancellation clause if they will be forced to honor them.
As a sign of the times, many hotels in the Orlando market are throwing out the attrition clause as an incentive to get groups to actually book. This should also be a signal to vacation home management companies to relax some of their non-refundable deposit and cancellation policies to encourage potential bookers.
The market and economy is changing at lightning speed, and the short term rental industry must react accordingly.
