Better understand guest behavior using length of stay metrics

In the first four segments of this series we’ve explored the value in upgrading your KPIs to track revenue and profit contribution through a series of next-generation hotel industry benchmarking metrics. We discussed how Guest Paid ADR, COPE %, Loyalty Contribution and Booking Lead Time remain interconnected and how trends from each metric can affect both a hotel's bottom line, as well as that of the broader industry.

As we observe the growth and evolution of brand loyalty programs, Length of Stay becomes an important variable in the equation. Length of Stay, or the number of actualized room nights per booking, is impacted by a variety of factors, as well as economic and societal trends.  For instance, a recent Forbes.com article said "78% of millennials intentionally carved out personal time on their business trips."

Weekdays still represent a higher loyalty contribution than weekend stays, but trends like ‘bleisure’ will begin to be woven into the fabric of loyalty programs to encourage and incentivize extending a business trip for personal purposes, generating a longer length of stay.

Transparency and granularity in data at scale across the industry can only help all operators stay in tune with the emerging trends the industry is facing as the digital marketplace continues to rapidly evolve.

One thought as to the cause of the decline is an expanding volume of total bookings in combination with group business declining, or remaining relatively flat, producing a drop in Length of Stay when compared to the same month of the previous year. 

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