Average length of stay (ALOS)

Average length of stay (ALOS) is one of the main hotel revenue management KPIs that shows the average number of nights guests spend at the hotel. It’s calculated by dividing the total room nights by the total number of bookings.

Generally, a higher value of ALOS is better since shorter stays mean increased guest turnover resulting in larger labor costs. However, depending on the focus of your hotel (e.g., business travel, vacations, weekend getaways), ALOS can differ a lot, so benchmarking is most accurate if performed within a hotel compset.

ALOS can be influenced by adjusting the revenue management strategy and offering discounts for longer bookings or increasing one-night rates. A more aggressive approach (e.g., setting a minimum length of stay restriction to minimize short-term stays) can be applied during a busy season when high demand is expected.

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