Length Of Stay (LOS )pricing is a pricing strategy in the hospitality industry where room rates are determined based on the number of nights a guests stay. Longer stays may be offered with discounted rates, while shorter stays may be priced higher to optimize revenue.
LOS (Length of Stay) pricing allows you to offer different rates depending on the number of nights a guest books. For example, you can set a standard rate for a one-night stay, offer a discount for two nights, and provide an even lower rate for stays of three or more nights. For example: You can set up 100 eur per day for a 1 night reservation, 90 eur for 2 nights, 80 eur for 3 nights etc.
To set this up, you will need to create separate Restriction Plans and connect each one to its corresponding Pricing Plan.
1. Create a Restriction Plan for a One-Night Stay
First, you will need to set restriction plans that you will connect with pricing plans.
To accomplish this, go to Settings - Prices/Restrictions
First, go to Settings → Prices/Restrictions.
Create a new Restriction Plan and configure the following:
Minimum Stay: 1
Maximum Stay: 1
This means that the rate plan will be available only for reservations of exactly one night.
Once you have created the restriction plan, create a new Pricing Plan and connect it to the restriction plan, as shown below:
You have now created your first rate plan, which guests will be able to book only when searching for a one-night stay.
2. Create a Pricing Plan for a Two-Night Stay
The same principle applies when setting up a rate plan for a two-night stay.
Create a new Restriction Plan with the following settings:
Minimum Stay: 2
Maximum Stay: 2
Next, create a new Pricing Plan and connect it to this restriction plan.
For this rate plan, you can use the Automatic Pricing Plan option and define a percentage-based price adjustment compared to your base rate plan.
For example, if you want to offer guests a 10% discount per night for reservations of two nights, set the automatic price variation to -10%.
This way, you don't need to calculate and enter the adjusted price manually – the system will automatically calculate it based on the defined percentage.
3. Create a Pricing Plan for Three or More Nights
Finally, you will need to create a rate plan for stays of at least three nights, with no maximum stay restriction.
Create a new Restriction Plan and configure the following:
Minimum Stay: 3
Maximum Stay: 0
Important: Setting Maximum Stay to 0 means there is no maximum length-of-stay restriction. Guests can book three or more nights, depending on the property's availability.
Next, create a new Pricing Plan and connect it to this restriction plan.
As in the previous example, you can use the Automatic Pricing Plan option to define the desired percentage-based discount.
4. Final Price Overview
You have now successfully created three different rate plans, each available depending on the guest's selected length of stay.
For example, if your standard daily rate is 100 EUR and you have configured the following price variations, guests will see these rates:
1night | 100EUR per night |
2nights | 90EUR per night |
3+ nights | 80EUR per night |
Please note: These prices are only examples. You can adjust the discounts and price variations according to your property's pricing strategy and business needs.