Revenue Glossary​

ALOS (Average Length of Stay)

📊 What is Alos?

ALOS is a core performance metric that reveals the average number of nights per booking. It helps optimise operations, segment demand, and define stay restrictions or offers.

🧮 Formula of ALOS

ALOS = Occupied room nights / Number of bookings

✅ Why is ALOS important?

  • Longer stays mean lower costs per guest.
  • Helps shape minimum stay policies.
  • Highlights trends (corporate vs leisure).

📘 Practical example of ALOS

300 bookings across 900 occupied room nights:
ALOS= 900 / 300 = 3 nights

👉 Indicates how many nights guests typically stay at your hotel.

🔍 Difference from Alos with other terms

  • Customer Retention Rate: Measures the percentage of customers who continue to stay at the hotel during a given period, regardless of how many times they stay. It indicates loyalty and general customer fidelity.
  • Stay Frequency: Shows how many times, on average, a customer stays at the hotel during a period. It measures active repetition of stays per guest.
  • LOS (Length of Stay): Number of nights a guest stays in the hotel during a single booking.
  • ALOS (Average length of stay): Average number of nights per stay across all guests during a specific period. It is an aggregated measure of stay patterns.

💡 In short: Retention tells you who keeps coming, frequency tells you how often each guest comes, and LOS/ALOS tells you how long they stay when they come.

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