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:
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.
This control is used when the hotel manager anticipates selling out rooms at higher rates.
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.
- Formula Average Length of Stay (ALOS) = Total occupied room nights / Total bookings
- Calculation Average Length of Stay (ALOS) = 111 / 37 = 3