Allocations let an operator confirm bookings instantly, rather than on request, and secure space for peak dates. The release date, also called the release period or cut-off, is the deadline, usually a set number of days before arrival or departure, by which unsold rooms or seats must be handed back.

Who carries the risk

The contract decides. Under a standard allotment the operator pays only for the rooms it sells and returns the rest by the release date without penalty. Under a commitment contract it pays for the rooms whether or not it sells them.

An example

An operator holds ten rooms a night at a hotel in Crete with a 21-day release. Rooms for arrivals on 22 June that are still unsold on 1 June go back to the hotel, and any later request depends on the hotel’s own availability.

Watch out for

• “Guaranteed allotment” means different things to different suppliers. It can mean the hotel guarantees availability, or that the operator guarantees payment, so read the contract.

• Release periods are negotiated, typically from a few days to several weeks before arrival.

• Airline seat allocations to tour operators work in a similar way, with their own release dates.