May 28, 2024

Olabeijing

Tour For Your Life

What is ALOS and how do you calculate it?

What is ALOS and how do you calculate it?

While this might be your first thought, ALOS is more than just another fancy hospitality acronym. It’s a key hotel metric to track if you want to optimise your distribution, reduce costs and increase revenue.

In this article, you’ll find everything you need to know about ALOS, and how to use it to further improve your property’s results.

What is ALOS?

ALOS abbreviates ‘average length of stay.’ It refers to the average number of nights guests stay at your property over a given time. For example, if your ALOS was 4.5 in Q3, 2022, each booking during that quarter was for 4.5 days on average.

ALOS usually shifts throughout the year, depending on the season and its respective travel patterns. It also differs depending on the property type, location and target market. Resorts that welcome mostly leisure guests often have a longer ALOS. On the other hand, city properties with a focus on business travellers usually see guests stay fewer days.

In the aftermath of the COVID-19 pandemic, ALOS trended upwards for many vacation rentals and hotels in scenic locations as people embraced the idea of staycations and remote working arrangements.

How do you calculate the average length of stay?

Calculating ALOS is easy. Determine the average length of stay for guests at your hotel by following these steps:

  • Add up the number of room nights booked for a given time (e.g. one month, quarter or a custom period).
  • Add up the number of reservations for the same time.
  • Divide the number of room nights by total reservations to get your ALOS.