What is the los index? The three types of los help maximize hotel revenue

LOS is a term in hotel management. Any hotel business focuses on studying the LOS index at certain times of the year to make timely adjustments to maximize profits for the hotel. If you still do not understand the current hotel LOS index types, please refer to this article.

What is LOS?
LOS is the term for the length of a customer’s stay in a hotel. This is an important indicator in revenue management activities. Tracking this index will help administrators promptly take measures to maximize room capacity and increase hotel revenue.

Types of LOS indicators in hotel business
1. ALOS (Average Length of Stay)
ALOS is an index calculated to measure the stay value of each customer segment or object. At the same time, this index also allows monitoring the effectiveness of hotel service quality in attracting and retaining guests. During “saturated” times of the year, hotels want to increase this index to boost room capacity and maximize effective revenue.

2. MinLOS (Minimum Length of Stay)
MinLOS is the minimum length of stay index set at the beginning of the peak season, used to minimize the number of guests wishing to stay for a short time. This will help the hotel maximize profits from long-stay guests. The MinLOS policy is often applied and implemented by hotels by refusing guests who only stay 1 night or guests who book at the last minute in order to better regulate room bookings, aiming to increase room productivity for those days. next.

3. MaxLOS (Maximum Length of Stay)
MaxLOS is the maximum length of stay index, applied to limit the number of nights stayed by a group of guests or 1 guest on a given day. Typically, the MaxLOS policy is implemented when administrators predict the time it will take the hotel to sell out all rooms at a high price.

In fact, not every room in the hotel can apply the MaxLOS policy because the hotel must consider whether the actual number of rooms can be sold to other customers at a higher price or not. This policy only applies when receiving bookings from group guests to limit long stays and hotels having to reduce prices during peak season. For guests who want to extend their stay when the MaxLOS policy is applied, the hotel will do so by increasing prices for subsequent nights.

Each LOS index must be researched and applied appropriately by hotel administrators at certain times of the year. Applying this index at the right time will help the hotel not only maximize room occupancy but also increase profits to the highest level.