30 May 2019
OTA Insight unveils key global data findings from Length-of-Stay strategy report
LONDON, DALLAS – May 30, 2019 – OTA Insight, the cloud-based data intelligence platform for the hospitality industry, today released a new Length-of-Stay (LOS) Strategy Report. Examining the rates of over 50,000 hotels globally, based on data derived from the company’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 (LOS discount), 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, one overriding trend seen among the 51,075 hotels analysed worldwide was that a large proportion of hotels (63%) almost never apply any kind of LOS discount. Of the 37% that do offer LOS discounts, 71% discount for 10 or more days in the period analysed. Overall, the frequency of hotels applying different discounts varies, in some instances significantly, with discounts applied most consistently, by major chains, followed by 3- and 5-star hotels.
“As champions of hoteliers, our true focus is to help revenue managers visualise and leverage data to understand what is working and where they are hurting, so they can ultimately drive bookings and profits,” said 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”.
Among the report’s other key findings are:
OTA Insight compared three consecutive one-night prices at each property with the price for a length of stay of three nights, analysing by every room type separately, taking two-person, cheapest flexible rates. Discount sizes and discounting frequencies are inferred based on these sample sizes:
The conclusions featured in the report are based on data derived from OTA Insight’s Rate Insight platform, which provides hoteliers with real-time access to current, future and past rates and other factors impacting demand for their hotel rooms. For more information about these findings, download the full report here.
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Download the report so you can benchmark its data against your own and see how your hotel compares to the competition.