What means Average Length of stay?

Average Length of Stay (ALOS) is a key performance metric used in the hospitality industry to measure the average duration of guest stays at a lodging facility, such as a hotel or resort.

ALOS is calculated by dividing the total number of guest nights by the total number of guest arrivals during a given period. The resulting figure represents the average number of nights that guests stay at the property.

For example, if a hotel has 200 guest arrivals during a month, and those guests stay a total of 600 nights, the ALOS would be calculated as follows:

ALOS = 600 (total guest nights) รท 200 (guest arrivals) = 3 nights

ALOS provides important insight into guest behavior and preferences, as well as the overall financial performance of a property. A higher ALOS can indicate that guests are satisfied with the property and are willing to stay longer, which can increase revenue and profitability. Conversely, a lower ALOS may indicate that guests are not fully satisfied with the property or that there are external factors, such as competition or economic conditions, that are affecting demand.

ALOS is commonly used by hotel operators and investors to track trends in guest behavior and to evaluate the effectiveness of marketing and promotional strategies. It is also used in conjunction with other metrics, such as occupancy rate and ADR, to assess the overall financial health of a property.