|LOS - Length of Stay||
What is the meaning / definition of Length of Stay in the hospitality industry?
There a different types of LOS, in fact.
Let's consider these now...
This is used to estimate the relative values of various segments and to keep track of hotel performance in attracting and keeping guests in house.
Some hotels have certain booking policies in place.
These can be used to manipulate booking factors when seeking to fill as many rooms as possible.
One such policy is:
. MinLOS is implemented when a hotel is facing a high demand period, following a lower one (a hectic time after a quiet time, in other words!).
A MinLos policy helps regulate reservations, meaning that short-stayers and last-minute one night stays are avoided. Consequently this can improve the occupancy ratios on the following days where there is perhaps low demand.
This policy is intended/used when turning down new arrivals on a day of expected high-demand, with only guests from previous night stays being allowed to get through.
MaxLos is one of the strategies in Revenue Management that limits the number of nights a guest or group can stay when arriving on a certain date.
This control is used when the hotel manager anticipates selling out rooms at higher rates.
Using MaxLos, a hotel can limit the number of rooms sold at large discounts during the high rate time period by limiting the (discounted) multi-night stays extending into that time period.
To accommodate guests who would like to stay at the hotel longer than the maximum length, it is possible to charge two rates: 1) a discount rate for nights up to the maximum, and 2) a rack rate for subsequent nights.