🔄 What is Stay Frequency?
Stay Frequency measures how many times, on average, a guest stays at the hotel during a specific period (e.g., one year). It is particularly useful to assess active loyalty and engagement from returning customers.
👉 Stay Frequency formula
Stay Frequency=Total number of stays by returning guests/Number of returning guests
📌 Why is Stay Frequency important?
- Identifies the most valuable customers who generate recurring revenue.
- Helps detect opportunities for loyalty programmes or targeted promotions.
- Provides data to forecast demand from returning guests and adjust pricing strategy.
A high frequency suggests that the hotel offers a satisfying experience and high perceived value, while a low frequency may highlight the need to strengthen guest relationships.
🏨 Practical example
A hotel has 150 returning customers during the year. These customers have generated a total of 450 stays.
Stay Frequency=450/150=3
This means that, on average, each returning customer stays 3 times a year.
🔍 Differences between Stay Frequency with other terms
- Not to be confused with the Customer Retention Rate, which measures the percentage of customers who return, regardless of how many times.
- Also different from Average Length of Stay (ALOS), which measures the average number of nights spent per visit.
