Minimum Length of Stay Strategies That Boost Hotel Revenue

Implementing a Minimum Length of Stay (MinLOS) policy can work wonders for your hotel’s revenue and occupancy. But there’s no one-size-fits-all solution. To make the most of this strategy, you need to understand your market, monitor demand patterns, and be flexible when it counts. Here’s a practical guide to mastering MinLOS and tailoring it to your property’s unique needs.

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Implementing a Minimum Length of Stay (MinLOS) policy can work wonders for your hotel’s revenue and occupancy. But there’s no one-size-fits-all solution. To make the most of this strategy, you need to understand your market, monitor demand patterns, and be flexible when it counts. Here’s a practical guide to mastering MinLOS and tailoring it to your property’s unique needs.

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What Is Minimum Length of Stay?

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At its core, a minimum length of stay in hotel management sets the shortest number of nights guests can book during a given period. It’s a strategy designed to:

• Maximize revenue during busy times by prioritizing longer bookings.
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• Reduce the operational churn of frequent check-ins and check-outs.
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• Smooth out occupancy peaks and troughs.
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When applied thoughtfully, MinLOS balances revenue optimization with guest satisfaction—keeping your property full and your operations efficient.

How to Create a MinLOS Strategy
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Every hotel is unique, so your MinLOS strategy should reflect your specific demand patterns, guest demographics, and market conditions. Here’s how to start:
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1. Build a Demand Calendar
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Dive into your booking history through your PMS or RMS to identify patterns. When are your high-demand periods? Which days see the lowest bookings? Create a calendar that segments your year into:

• High-demand periods: Apply stricter MinLOS (e.g., 2–3 nights).
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• Moderate-demand periods: Keep policies flexible.
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• Low-demand periods: Relax restrictions to attract short stays.
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For example, if Thursday bookings are typically weak, encourage midweek stays by offering attractive Wednesday rates. On the flip side, during a festival or event, focus on longer stays to lock in more revenue and maintain occupancy in the quieter days that follow.

2. Keep an Eye on Competitors
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Knowing how your competitors handle their MinLOS policies can give you a competitive edge. Check OTAs like Booking.com to see if similar properties enforce two-night minimums for high-demand weekends. Offering a one-night option at a premium rate can set you apart and attract last-minute bookers.
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For more information about how to analyse your hotel competition, check out this blog.

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3. Leverage OTA Visibility

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Your property’s ranking on OTAs like Booking.com plays a big role in how well your MinLOS strategy performs. If your visibility is strong, you can afford stricter MinLOS policies. Lower visibility, however, may require more flexible options to capture short-stay demand.

To tailor your approach, use Booking.com’s extranet analytics tools to monitor ranking and impressions. This way you can also see how your visibility stacks up against competitors.
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For more on boosting visibility on Booking.com, check out this guide.
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Flexibility: The Heart of a Good MinLOS Strategy
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The hospitality market is always in motion, so your MinLOS policies need to move with it. Regularly review booking data and adjust policies as needed. 

For example, if a specific weekend is not filling up as expected, consider lowering or removing the restriction to boost occupancy. This dynamic approach ensures you capture as much demand as possible without leaving rooms unsold.
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Tried-and-True MinLOS Strategies

Longer Stays (3–7 Days)
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Best for:
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• Resorts and seasonal markets: Capture vacationers seeking extended stays.
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• Event periods: Keep rooms booked throughout festivals or conventions.

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Shorter Stays (1–2 Days)

Best for:

• Urban hotels: Business travelers often book single-night stays midweek, while weekend guests may prefer two nights.
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• Low-demand periods: Fill empty rooms with flexible policies.
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Orphan Day Bookings
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Orphan days—those awkward gaps between bookings—can be tough to fill. Allowing shorter stays (e.g., 1–2 nights) for these days ensures your calendar stays full.
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Last-Minute Bookings
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Capture spontaneous travelers by offering 1-night stays for weekdays and 2-night stays for weekends in the final booking window. Adding a premium protects your revenue while increasing flexibility.
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Far-Out Bookings
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For reservations made months in advance, apply stricter MinLOS (e.g., 7 nights). This locks in high-value stays early and leaves flexibility for shorter bookings closer to the date.
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How to Change Minimum Night Stay on Booking.com

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Updating your MinLOS on Booking.com is simple and ensures consistency across channels. Here’s how:
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1. Log in to the Booking.com extranet.
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2. Navigate to Rates & Availability > Calendar.
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3. Select the dates you want to adjust.
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4. Input your desired minimum night stay value.
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5. Save changes.
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Using a channel manager? Even better—you can update all OTAs at once to save time.
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Real-World Success: Hotel Staatsman

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Hotel Staatsman, a boutique property, struggled with unsold rooms during slower periods due to rigid MinLOS policies. Manual adjustments to attract short-stay guests were time-consuming and inconsistent.

By partnering with Otamiser, the hotel implemented a dynamic 1-night premium rate plan. This non-refundable rate, available two days before check-in, captured last-minute bookings without disrupting the overall MinLOS strategy.

Results:

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• ADR grew by 10.1%.
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• Occupancy increased by 39.69%.
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• RevPAR surged by 84.20%.
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Hotel manager Andries van der Veen shared: “We are more than happy with the results Otamiser has realized for our hotel. The collaboration with the team has been great!”

Read the full case study here.

The Takeaways
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A smart minimum length of stay in hotel strategy can do more than fill rooms, it can optimize revenue, improve guest satisfaction, and streamline operations. When combined with dynamic pricing and visibility management, MinLOS becomes a powerful tool for navigating an ever-changing hospitality market.
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Want to see how Otamiser can take your revenue management to the next level? Contact us today for a free consultation!

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