🛌 Understanding Average Length of Stay (LOS): Why It Matters More Than You Think

As we continue our Hotel Revenue Management Vocabulary Series, we’re moving from the basics like ADR and Occupancy into more nuanced metrics—starting with LOS or Average Length of Stay.

At first glance, LOS might seem like a guest preference or an operational detail—but it’s actually a powerful indicator of revenue efficiency and operational leverage. If you're running a boutique hotel with 10–50 rooms, increasing LOS can have a transformative effect on your profitability.

This post will unpack what LOS is, why it matters, how to improve it, and where hotels often go wrong when evaluating or ignoring this metric.

What is Length of Stay (LOS)?

Average Length of Stay (LOS) measures how long guests stay at your property on average, usually calculated over a given period (week, month, season).

Formula:

LOS = Total Room Nights Sold ÷ Number of Reservations

For example, if you had 50 room nights sold over 20 reservations:

50 ÷ 20 = 2.5 nights LOS

This tells you that, on average, your guests are staying two and a half nights.

Why is LOS Important?

• Reduces Operational Costs

  Longer stays mean fewer check-ins, fewer checkouts, and less housekeeping labor per room night. Each new booking often triggers fixed costs like a full room reset, front desk support, and communication. With multi-night stays, those costs are spread over more nights—improving profitability.

  
  

• Prevents Booking Conflicts During High Demand

  One-night stays during peak periods can block multi-night reservations. We've seen many cases where longer-stay guests search for 4, 5, or 6 nights but can't book because 1-night bookings have chopped up availability. This can lead to missed high-revenue opportunities. Implementing a 2- or 3-night minimum stay—when properly analyzed—can improve total revenue and reduce operational churn.

  
  

• Increases Revenue Per Reservation

  Each reservation comes with fixed costs—confirmation, check-in, processing. Spreading those over more nights improves your return per guest.

  
  

• Enhances Forecasting and Staffing

  Higher average LOS results in more stable occupancy patterns, which makes it easier to plan housekeeping, staffing, and inventory.

  
  

How to Increase LOS in a Boutique Hotel

1. Offer Incentives for Longer Stays

Use offers like “Stay 4, Pay 3” or “20% off for 5+ nights.” These bundles encourage guests to stay longer without feeling like you’re just discounting.

2. Highlight Extended-Stay Amenities

If you offer kitchenettes, laundry, or outdoor workspaces, make sure guests know. These features are attractive to longer-stay guests like remote workers or families.

3. Target Long-Stay Booking Segments

Market your hotel to digital nomads, seasonal workers, or long-weekend travelers. These groups are actively looking for multi-day stays.

4. Use Stay Restrictions Strategically

During high-demand periods, consider adding 2- or 3-night minimums. This helps maximize your calendar’s revenue potential—but be sure to monitor performance and test different approaches. What works in summer may not work in shoulder season.

Common Pitfalls to Avoid

• Filling the Calendar with 1-Night Stays: One-night stays cost more, create more turnover, and block longer stays. If you’re not managing this carefully during busy times, you may be losing money even at full occupancy.

• Rigid Stay Requirements During Low Demand: Minimum stays are great for peak periods but can choke off demand when bookings are already slow. Use data to flex policies by date and season.

• Failing to Analyze LOS by Channel: Some channels (like Airbnb or VRBO) naturally attract longer stays, while others skew short. Segmenting LOS performance helps you optimize pricing and availability by channel.

Key Takeaways

LOS is more than a side stat—it’s a leverage point. Increasing your Average Length of Stay even slightly can raise revenue, reduce costs, and smooth out your operations. And during high-demand seasons, it can prevent your availability from being fragmented and underutilized.

If your property is attracting mostly 1-night guests, it might be time to rethink your offers, channels, or messaging—and implement smarter booking policies.

Want to Build a Strategy That Improves LOS?

We teach hoteliers how to build smart pricing rules and guest offers that improve length of stay without sacrificing volume. Our workshops and online courses are built for real-world operators, not just theorists.

🎯 Learn more or join us here:👉 www.resortincome.com/education