Minimum Length of Stay: Strategies to Maximize Hotel Revenue

?? For the full blog with more insights go to our website.

A well-planned Minimum Length of Stay (MinLOS) policy can significantly impact your hotel’s revenue and occupancy rates. However, this strategy isn’t a one-size-fits-all solution—it requires a deep understanding of your market, flexibility, and careful adjustments based on demand patterns.

If you’re looking for a complete guide, be sure to check out the original blog on our website, where we dive deeper into the nuances of MinLOS strategies. For now, here’s a fresh perspective on how MinLOS can work wonders for your property.

What Is Minimum Length of Stay?

In hotel management, a minimum length of stay defines the shortest number of nights guests can book during a specific period. This strategy is particularly useful for:

• Maximizing revenue during high-demand periods.
• Reducing operational costs by minimizing frequent check-ins and check-outs.
• Smoothing occupancy fluctuations, ensuring your property stays consistently busy.

When thoughtfully applied, MinLOS can strike a balance between revenue optimization and guest satisfaction, improving your property’s overall performance.

Crafting an Effective MinLOS Strategy

Every hotel is unique, so your MinLOS policies should reflect your property’s specific needs, guest demographics, and market dynamics. Here’s how you can start:

1. Build a Demand Calendar

Analyze your booking history using tools like your Property Management System (PMS) or Revenue Management System (RMS). Identify patterns to segment your year into high, moderate, and low-demand periods:

• High-demand periods: Apply stricter MinLOS policies (e.g., 2–3 nights).
• Moderate-demand periods: Offer flexibility to attract diverse guests.
• Low-demand periods: Relax restrictions to capture short-stay demand.

For example, if Thursdays are historically underbooked, encourage midweek stays by offering special rates on Wednesday nights. During festivals or peak events, longer MinLOS policies ensure consistent revenue while maintaining occupancy in quieter post-event days.

2. Monitor Competitor Policies

Staying competitive means keeping an eye on your rivals. Use OTAs like Booking.com to analyze similar properties’ MinLOS strategies. If they enforce two-night minimums during weekends, offering a one-night option at a premium could capture last-minute bookings and set you apart.

The Role of OTA Visibility in MinLOS Success

Visibility on platforms like Booking.com is critical for MinLOS strategies to work effectively. A strong ranking means you can enforce stricter policies, while lower visibility may require more flexibility to attract bookings.

Use tools like Booking.com’s extranet to monitor your property’s performance metrics, such as impressions and ranking insights. These analytics help tailor your MinLOS policies to your current visibility level, ensuring you’re maximizing booking opportunities.

To learn more about boosting your OTA ranking, check out this detailed guide.

Different MinLOS Strategies

Here are some common MinLOS strategies that can help you optimize revenue:

• Longer Stays (3–7 Days): Perfect for resorts and seasonal destinations to attract vacationers.
• Shorter Stays (1–2 Days): Ideal for urban properties catering to business travelers or weekend guests.
• Orphan Day Bookings: Fill awkward gaps between bookings by allowing 1–2-night stays.
• Last-Minute Bookings: Relax restrictions in the final booking window to capture spontaneous travelers.
• Far-Out Bookings: Enforce stricter policies (e.g., 7-night stays) for reservations made months in advance.

A Success Story: Hotel Staatsman

Rigid MinLOS policies once left Hotel Staatsman struggling with unsold rooms during slower periods. Manual adjustments to attract short-stay guests were time-consuming and inconsistent.

By partnering with Otamiser, the hotel implemented a dynamic 1-night premium rate plan. This non-refundable rate, available two days before check-in, automated last-minute bookings while preserving their overall MinLOS strategy.

Results:

• ADR grew by 10.1%.
• Occupancy increased by 39.69%.
• RevPAR surged by 84.20%.

The hotel’s manager, Andries van der Veen, shared: "We are more than happy with the results Otamiser has realized for our hotel. The collaboration with the team has been great!"

Read the full case study here.

The Bottom Line

A well-implemented minimum length of stay in hotel strategy can unlock incredible revenue opportunities while ensuring guest satisfaction. Whether you’re managing a boutique property or a larger chain, combining MinLOS with dynamic pricing and OTA ranking management is a surefire way to stay competitive in today’s fast-changing market.

Want to see how Otamiser can elevate your hotel’s revenue management? Let’s connect and explore tailored solutions for your property!