About 63 per cent hotels surveyed almost never apply any kind of Length-of-Stay (LOS) discount. A new hotel Length-of-Stay (LOS) Strategy Report was released today, examining the rates of over 50,000 hotels globally, based on data derived from OTA Insight’s Rate Insight platform.
The report provides a comprehensive analysis on the number of hotels that apply a level of discounting in return for a guaranteed number of nights (length-of-stay discount). It reflects how often they apply it, the size of discounts, and what key takeaways can be extracted from these different strategies.
From Asia to Latin America, about 51,075 hotels were analyzed worldwide. Of the 37 per cent that do offer LOS discounts, 71 per cent provide discount for 10 or more days in the period analyzed.
Region wise the percentage of hotels consistently discounting on LOS (at least 10 LOS discounting dates) are North America (36 per cent); Middle East – (29 per cent); Asia – (28 per cent); Australia and New Zealand – (21 per cent); Europe – (15 per cent); and LATAM – (12 per cent).
The majority of chain hotels with LOS discounting strategies discount between 30 per cent and 65 per cent of the time.
As per Gino Engels, CCO of OTA Insight, price adjustment is an inevitable reality for the day-to-day revenue management of most hotels, due to fluctuating supply and demand. Adding length-of-stay discount tactics to their pricing and promotional toolbox is an effective method of driving up occupancy during periods of low demand, and should be a key consideration when planning out a pricing strategy.