Block allocation

Block allocation or allotment is when a specific number of rooms, seats, or other types of travel inventory are set aside for a particular partner or customer group. In the travel industry, this often happens when a tour operator, destination management company (DMC), or wholesaler (bedbanks) negotiates with a hotel or airline to secure a block of rooms or seats at a fixed price.

This arrangement benefits both sides. The supplier secures early revenue and ensures a steady flow of bookings. On the other side, the reseller gets access to inventory they can sell as part of travel packages or promotions. Unsold blocks might be returned to the supplier by a specific deadline, depending on the agreement terms, which is known as the release period.

Block allocation is a common practice in group business travel, MICE (Meetings, Incentives, Conferences, Exhibitions), and package tours where organizing large groups requires guaranteed availability of accommodations or transport.