No doubt, guest experience matters the most when you run a hotel. But that doesn’t mean you can overlook your hotel’s bottom line.
NB: This is an article from eZee Absolute
Is there a middle ground? Of course, yes! Several strategies help in delivering a great experience and bagging good profit. But the one I am addressing here is increasing the average length of stay in a hotel.
LOS isn’t just an aspect; it helps hoteliers in making informed decisions. For that, the average length of stay in a hotel is what needs to be determined.
Subscribe to our weekly newsletter and stay up to date
What is the Average Length of Stay (ALOS) in a Hotel?
The average length of stay in a hotel refers to the average amount of days guests stay at the hotel during a particular period.
But, do you know how to calculate the average length of stay in hotels?
Here’s the formula to calculate the average length of stay in a hotel:
ALOS = No. of occupied room nights (Total length of stay)/ Total Number of bookings
Let me explain with an example.
Hotel Minnesota had 4 bookings last month. Each of the guests spent 5, 2, 12, and 11 nights respectively. Therefore, the ALOS will be as follows:
Total length of stay = 5+2+12+11 = 30
Total bookings = 4
ALOS = 30/4 = 7.5
Why is Length of Stay important?
Length of stay, or to be extra-precise, extended length of stay is crucial for hotels. It’s always right as rain when hotels successfully manage to land bookings for guests with lengthy stays.
Let’s look at some of the advantages of the length of stay for hotels:
- Hoteliers don’t have to worry about getting their rooms booked for a certain period.
- They get the opportunity to earn more revenue that lasts for a longer period.
- They can sell additional services to the guests staying for long.
- LOS enables hotels to target certain groups/segments of travellers in a much better way.
Moreover, LOS is not just beneficial for hotels, but also for guests in many ways.
- Guests get a longer stay at a reasonable price.
- They get to avail much more amenities compared to traditional stays.
- They might also get free services (only if the hotel offers) for extending their stay.
Length of stay, if strategized properly, can be a win-win for both guests and hotels. And this is exactly what I am going to help you with.
How Hotels Can Increase the Average Length of Stay?
To increase the average length of stay in a hotel, you need to up the LOS. When you look at this scenario carefully, there are three aspects of increasing the length of stay.
- Analysis always comes first because your strategy should not be a shot in the dark.
- You can sell lengthy stays during the time of booking.
- You can make your in-house guests extend their stay.
So, the points I am mentioning here are based on these three aspects.
1. Find out who’s your specific audience
I cannot emphasise enough how prominent it is to determine your target guest segment.
Even though various types of guests visit your property, there’s always one or two prime guests segment visiting your property.
So first, learn the ropes and then move on to building your LOS strategy.
The best way to go about it is by tapping into the pile of data you have. Look into the data and every tiny detail.
For example: Try to determine at what time of the year you have had guests that stay longer. Were they individuals or groups? If they were groups, were they friends and family or some corporate folks?
That’s not all. You can explore more. Find out whether it was already a long stay booking or they extended their stay. If it’s the latter one, what services did they avail?
It all boils down to the way you narrow down. The more insights you gather, the better you can analyse.
2. Create a smart pricing structure
Money matters!! People don’t want to pay for hotels that are overpriced even for a night’s stay.
Meaning, if you want your guests to stay with you for a longer duration, you need to set smart pricing. Simply put, it has to bring you profit, and at the same time, should go lighter on your guests’ wallets.
Working with revenue management experts ensures you the same. Therefore, I suggest hiring top-class revenue managers.
These sets of people have immense knowledge of the industry and know all the strategies that work.
