Average Length of Stay (ALOS) is a key performance indicator in the hospitality sector, reflecting the average duration of stays by guests at facilities like hotels or resorts.
ALOS is calculated by dividing the number of guest nights by the number of guest arrivals over a specific period. For instance, if a hotel receives 200 guests in a month who stay for a total of 600 nights, the ALOS is 3 nights (600/200).
This metric provides insights into guest behavior and preferences, and is critical for assessing the financial performance of a property. A higher ALOS generally suggests guest satisfaction and potential revenue increase, while a lower ALOS might indicate dissatisfaction or the impact of external factors such as competition.
Hotel operators and investors utilize ALOS to monitor guest behavior trends and to evaluate the efficacy of their marketing and promotional strategies, alongside other metrics like occupancy rate and ADR.
