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ALOS meaning and how you can calculate it

ALOS meaning and how you can calculate it

You must be clear about the ALOS meaning in order to grow your hotel and improve the services you offer in it. This acronym stands for “average length of stay”. Thus, ALOS refers to the average number of nights that visitors stay in a hotel during a certain period of time. It is important to […]

You must be clear about the ALOS meaning in order to grow your hotel and improve the services you offer in it. This acronym stands for “average length of stay”. Thus, ALOS refers to the average number of nights that visitors stay in a hotel during a certain period of time.

It is important to say that ALOS fluctuates constantly throughout the year. This is mainly due to seasonality: tourists tend to travel more at some dates than others. However, the ALOS can also vary according to the type of hotel, the location where it is located and your target audience.

If it is high, the meaning of ALOS implies that hotel visitors stay longer in your establishment. For example, if your ALOS for the first quarter of this year was 6, it means that on average each booking for that period was 6 days.

Importance of ALOS in the hotel industry

An excellent way to measure the performance and health of a hotel is through ALOS. In fact, most hoteliers today use the ALOS meaning to estimate their revenue. Because longer stays translate into more sales.

When your hotel has a high ALOS, it means that your guests decide to stay longer. Thus, this metric also points to the degree of satisfaction that customers have when staying. That is, the higher the ALOS, the more satisfied the customer is with what your hotel offers.

But although the ALOS meaning is very attractive, it is necessary to be careful. The reason is that there is no standard or universal ALOS for all tourist establishments. And the fact is that this metric varies according to the type of hotel, the category of the establishment, the seasonality and even the demographic group.

To help you better understand this, let us give you an example. It is estimated that in New Zealand hotels have an average ALOS of 2 nights. However, in that same country the ALOS for backpacker-only accommodations is 3 nights. This does not mean that the latter are more successful than conventional hotels. And the reason for this discrepancy lies in the fact that the latter establishment focuses on another niche: young people looking for affordable prices for long stays.

With this in mind, when talking about the meaning of ALOS and its importance we should remember that this is not a stand-alone metric. As a hotelier, to get the most out of it you must take into account your target audience, the location of your hotel and your business model.

How can you calculate the ALOS?

The ALOS calculation is quite simple to do, and you don’t need to be a math expert. Just follow the formula below:

ALOS = Total room nights/ Total bookings.

So, if you want to determine the ALOS of your hotel during a specific period of time, you only need to:

  1. Add the number of nights per room that was booked during that time period.
  2. Add the number of bookings your hotel received during that same time period.
  3. Divide the total number of room nights by the total number of bookings.

Don’t forget to keep track of your hotel’s ALOS

It is not enough to know the ALOS meaning and calculate it to take advantage of it, but you must track it. By doing so, you will be able to easily detect your hotel’s booking patterns during different times of the year. In this way, you will be able to create strategies to take advantage of peak periods and boost your business.

Likewise, when you track your hotel’s ALOS you also increase operational efficiency. For example, according to your ALOS by season, you will be able to better distribute staff, prepare maintenance and improve customer service.

alos significado

Tips to increase your hotel’s ALOS

There is no doubt that extended stays are synonymous with higher profitability for your hotel. The reason is that the ALOS means less effort in cleaning rooms and less resources invested to receive new bookings. Therefore, as a hotel owner you should be concerned about increasing the ALOS of your establishment. Here are some ways in which you can achieve this:

1. Establish a minimum number of nights for each booking

By not allowing short stays, guests will only choose your hotel for longer stays. Thus, the restrictions of a minimum number of nights for your establishment allow you to increase your ALOS. However, keep in mind that this strategy is more successful during vacations or commercial breaks.

We recommend that you do not make these restrictions during low seasons. Otherwise, you may drive your customers away.

2. Offer more attractive stays

Users are willing to stay longer in a hotel where the price fits their budget. Therefore, an excellent way to leverage the ALOS meaning is by using a special pricing system. This involves calculating room rates according to the length of stay and the guests’ arrival date.

Likewise, another interesting option can be to offer “4 nights for the price of 3” type promotions. This is especially effective in the low season, as it can encourage longer stays.

3. Motivate your guests with activities

To increase your ALOS, you can also encourage your guests to stay at your hotel through special activities. Here, the goal is to make the idea of staying a little longer irresistible. For example, you could offer special packages to visit historical sites and enjoy the area.

At this point, the important thing is to offer a variety of options. This way, you will be able to satisfy the different interests of your visitors, giving them good reasons to stay longer.

4. Make it easy to extend their stay

When your visitors have settled into their room, a new opportunity arises to encourage them to extend their stay. A day before their scheduled departure, contact them with a special offer if they decide to stay an additional night. This offer could be an all-you-can-eat dinner, a massage, a discount on their next purchase, or the like.

You can contact your customers through a call to the room or, preferably, through direct messaging methods (such as mail or message). The important thing is that you make this process easy. The easier it is, the more likely it is that guests will take advantage of the offer.

Take advantage of the ALOS meaning with the help of IHCS

ALOS, or average length of stay, is crucial for evaluating and improving your hotel’s performance. A high ALOS indicates higher satisfaction and profitability. With this meaning of ALOS in mind, IHCS offers you customized strategies to improve this metric for your hotel.

With IHCS, you can take full advantage of ALOS, increasing your revenue and ensuring a superior guest experience.

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