There’s a powerful duo you need to get to know: ‘length of stay’ (LOS) and ‘average daily rate’ (ADR). These two metrics can transform your pricing strategy and boost your revenue significantly. In this blog, we’ll break down how to balance LOS and ADR and give you practical advice on choosing the right strategy for your listings, to maximize their potential.
Bonus: We’ve added a detailed and practical checklist at the bottom to guide you through finding your perfect MinLOS strategy!
Interrelation between LOS and ADR
Length of Stay (LOS) and Average Daily Rate (ADR) work hand-in-hand to optimize your revenue. Longer stays often come with discounted nightly rates. This can be an effective way to increase occupancy during off-peak seasons while also generating additional revenue through services like cleaning or local experiences.
At the same time shorter stays at peak-moments usually go for higher ADRs. This is a way to maximize profits when the demand is highest.
Airdna published an interesting graph demonstrating this relationship:
This graph highlights the properties with the highest Revenue per Available Room (RevPAR) on average.
To break it down: Average Daily Rate (ADR) reflects the average price charged per night, while RevPAR combines both rates and occupancy to provide a more comprehensive view of a property's overall performance.
On average, properties with more flexible restrictions tend to earn more per unit. However, properties with a 1-night stay minimum requirement have a lower RevPAR compared to stays restricted to 4 - 6 nights. As 1-night stays can be a good tool to short-term maximisation, but often create the problem of gap nights, which are less attractive to sell. This shows that the relationship between stay restrictions and revenue is nuanced, influenced by multiple factors that we will explore further in this blog.
Most common MinLOS strategies for STRs
Let’s start with defining some of the most common and effective MinLOS strategies out there.
Longer stay (3-7+ days)
A 3-7 day minimum stay is what we call a longer stay strategy. It helps lock in bookings that bring more stability for a slightly lower ADR.
This approach is perfect for peak demand times, ensuring your property stays booked for longer stretches and keeps the occupancy steady.
Shorter stay (1–2 days)
If your short-term rental attracts business travelers or weekend visitors, offering flexible stays of 1-2 nights can be a great way to boost bookings. Many business travelers book last-minute and prefer short, hassle-free stays, especially during the shoulder season.
Setting a MinLOS of 1-2 nights helps capture these guests, but a more flexible approach can work even better:
- Weekdays (Offseason): Allow 1-2 night stays to attract business travelers and midweek guests.
- Weekends: Set a MinLOS of 2-3 nights when demand is higher.
That said, shorter stays need to make financial sense. Take a look at your cleaning costs and extra fees, will a one-night booking still be profitable? Also, keep local events in mind. Conferences, for example, often bring guests who stay for 2-3 nights, so adjusting your MinLOS during these periods can help you maximize bookings while keeping operations efficient.
Mid-term stay (30 days+)
Some property managers lower their ADR to encourage longer stays (30 days or more), especially during slow seasons when short-term bookings drop. This strategy helps boost occupancy when demand is low.
It’s also a smart move in cities with short-term rental laws. In Charleston, for instance, owners can only rent out their property for 144 days a year. The rest of the time, they have to require 30-day minimum stays. So, managers often open up their listings for short-term rentals during peak season and switch to 30-day stays when demand slows down.
Last-minute bookings
For those travelers who like to make spontaneous decisions, lowering your MinLOS for upcoming gap nights can help you attract last-minute bookings. This strategy is particularly useful for properties that are located in popular tourist destinations or cities with high volumes of spontaneous travelers. Combined with direct booking options and last-minute promotions, you really attract people to fill those gaps.
Far-out bookings
For those looking to secure bookings well in advance, applying a stricter MinLOS (e.g., 7+ nights) for dates several months out can help you secure high-value stays. This strategy helps protect your booking calendar by locking in longer stays early. As the check-in date approaches, you can relax the MinLOS policy and offer more flexibility if demand shifts.
This balance between early commitment and flexibility makes sure that your accommodation stays attractive to a broad range of potential guests.
We will go deeper in finding the right strategy for your STR in the following sections.
How to create a MinLOS strategy for your STR
There’s no one-size-fits-all approach for setting your MinLOS strategy. It’s all about aligning your approach with your property’s demand patterns, property type, and market trends. Here’s how to get started:
Analyzing the right data
When it comes to MinLOS, think of it like your pricing strategy, it's got to be dynamic. You can't just set it and forget it. LoS should adjust based on demand, supply, and the specific situation at hand. The key is to constantly tweak it to stay ahead.
Luckily, platforms like Airbnb and third-party tools have built-in analytics to help you track key metrics like average booking length, lead times, and occupancy rates. By digging into this data, you'll start noticing trends and patterns that can guide you in fine-tuning your MinLOS strategy. This way, you’re always optimizing and making the most of your bookings.
Find your ‘average length of stay’ (ALOS) on Airbnb
Look at your booking history to figure out your typical guest stay length.
How to find ‘average length of stay’:
- Head over to your Airbnb dashboard
- Go to the ‘Insights’ section
- Click on ‘Occupancy & rates’
- Check ‘Length of stay”
- Set date range from a year back until the upcoming 6 months to see your past and future data
Once you have this data, here's what to do with it:
- If you're seeing that guests typically stay 2-3 nights, consider lowering your minimum stay. This can help fill up any gaps in your calendar with shorter stays, especially during slower times.
- On the flip side, if your average stay is 7-10 days or you’re attracting more long-term guests (think remote workers), you might want to increase your minimum stay to align with the longer booking trend.
You can also create a structure for adjusting your LOS:
- High season: Keep a higher MinLOS several months out. As you get closer to the month, reduce it if your occupancy is lower than expected.
- Shoulder season: Consider offering more flexible stays, around 2-3 nights, to fill any gaps.
- Low season: Be even more flexible with your LOS, lower it further to capture last-minute, short-term bookings.
Finally, check for occupancy gaps, especially during off-peak periods. Flexible stay requirements can help fill those annoying gaps in your calendar, keeping your property booked and your revenue up.
How to find ‘Occupancy rate’ for your listing:
- Go to your Airbnb dashboard
- Navigate to the ‘Insights’ section
- Click on ‘Occupancy & rates’
- Check ‘Occupancy rate’
- Set date range from your current date until the upcoming 6 months to see your future occupancy
Important note: The Airbnb dashboard only shows bookings made on their platform. If you receive reservations from other sources, your actual occupancy may be higher than what’s shown. Keep this in mind when analyzing your data.
Your minimum length of stay (MinLOS) could be a factor in leaving those gaps. If you’re setting a high MinLOS during off-peak times or mid-week, you could be restricting potential guests from booking for shorter stays.
Allow shorter stays during slower periods, which can help fill gaps and keep your occupancy high.
Analyse your lead time on Airbnb
One important factor to keep in mind is booking lead time; the average number of days between when a guest books a listing and the day of check-in.
How to find your lead time on Airbnb
- Navigate to your performance dashboard.
- Go to ‘Insights’ via ‘Menu’
- Click on performance and navigate to ‘Conversions’
- There you will be able to see your average booking lead time
Knowing this can help you adjust your MinLOS based on whether it’s a peak season or a quieter time of year.
For example, during peak seasons or holidays when people plan their trips well in advance, setting a longer MinLOS can help you lock in more extended stays and boost your revenue.
On the flip side, during quieter times, when guests tend to book closer to check-in, loosening up your MinLOS can attract those spontaneous, last-minute travelers and fill in those empty nights.
Check your market’s page views
Your Airbnb page views are a key indicator of demand, helping you spot high and low seasons. You can analyze data for the past six months and look ahead three months to see trends. Comparing your page views with competitors gives you a clear picture of market performance and whether your listing's visibility is keeping up, or if it needs improvement.
how to find page views on Airbnb
- Go to your Airbnb dashboard
- Navigate to the “Insights” section
- Click on “Conversions”
- Check “Views”
- Adjust the time range to view up to 1.5 years of data
Your ranking on Airbnb and other OTAs directly impacts how well your MinLOS strategy works. A highly visible listing can afford stricter MinLOS settings without hurting occupancy, while a lower-ranked listing may need more flexible stay policies to attract short-term bookings and fill gaps.
This impact goes both ways, the more flexible your MinLOS, the higher your listing will rank, since you will appeal to a bigger audience. So keep in mind that adding extra restrictions will lower your visibility.
AutoRank was built to automatically increase the page views of Airbnb listings. It does this by optimizing your listing’s description, title and summary with AI-driven updates every 48 hours. The solution ensures your descriptions stay fresh, incorporate trending keywords, and adapt to guest search behavior. This not only helps you rank higher in the search results, but also tailors your listing to those last-minute bookers or long-term stayers you are looking for.
Keep an eye on competitors
Don’t just focus on your property, take a peek at how your competitors are playing the game too! Head over to OTAs like Airbnb and check out their MinLOS policies. Are other properties around you setting a 2-night minimum for busy weekends? If so, you could get an edge by offering a 1-night option for a slightly higher price to win over those last-minute bookers.
Just like with cancellation policies, we recommend you to always be just a little bit more flexible than your competition. This will make you more attractive to a lot of travellers, but also boost your visibility by appearing in more search results where people are looking for certain dates for shorter stays.
The location of listings also has an impact on the MinLos strategies that are most commonly used. According to Airdna, cities are more flexible in their minimum stay requirement
If you're hosting in a city, keeping your stay lengths flexible, especially during slower seasons. On the other hand, if your place is in a vacation hotspot, setting a longer MinLOS during peak seasons is a smart move. It helps you lock in higher-value stays while cutting down on constant check-ins and cleaning turnovers.
How to adjust Airbnb rates based on different length of stay
Your minimum length of stay (MinLOS) strategy should work in synergy with your pricing. Smart pricing adjustments can help you attract the right guests and prevent unwanted booking patterns. Here’s how:
Make longer stays more appealing
Encouraging guests to stay longer isn’t just about setting a MinLOS, it’s about making it financially attractive. Instead of a flat rate per night, structure your pricing so that a two-night stay offers better value than a single night. This discourages short, high-expence bookings while still keeping your calendar flexible.
Control ‘length of stay’ with strategic pricing
Not all longer stays are created equal. If three-night stays are more profitable for you than four-night ones (due to cleaning schedules, demand fluctuations, or weekend patterns,...), adjust your pricing so that a three-night stay is the best-value option. This nudges guests toward the length of stay that works best for your revenue goals.
How to use Airbnb discounts to attract longer stays
Airbnb’s discount system can be a powerful tool to shape guest behavior, nudging people for longer stays.
Important note: Your discount will only be highlighted in the search results when it is 10% or more. This will help your listing stand out in the search results. The discounted price will also be displayed next to your original rate in the price breakdown on your listing.
Here’s how to use those discounts effectively:
Weekly (7+ days) discounts Airbnb
Offering a slight discount on stays of seven nights or more can make your listing more attractive to digital nomads, workcationers, or slow travelers who prefer extended stays.
On top of that, weekly discounts have a positive impact on your ranking in the Airbnb search results. Why? As Airbnb is built to match the best potential stay for a guest with a property. If someone is searching for a 7-day stay, Airbnb will go way and beyond to match your property with this search.
Airbnb monthly (28+ days) discount
If your goal is to secure long-term guests during off-peak seasons or in regulated markets, Airbnb’s monthly discount can help. Just be sure to price it carefully so you don’t end up undercutting your revenue potential.
What is the average monthly discount Airbnb:
The average monthly discount is a lot higher than the weekly one, on average hosts offer a 46% discount when a guest commits to 30 days.
A recent study shows the average discount hosts offer for extended stays across 5 US cities. There is a clear difference between the cities, the difference between the average discount for 30 nights in Chicago and LA is almost 30%. That is why it is important to know your own market. Take a look at what your own competition is doing and use that as your benchmark.
How to set Airbnb LOS discounts
- Go to your ‘Calendar’ and select the listing you want to update.
- Click ‘Pricing’, then select ‘Discounts’.
- Choose between Weekly, Monthly, or Trip Length Discounts.
- Enter your discount percentage and click ‘Save’.
Optimize your MinLOS strategy with the right pricing strategy
Your minimum length of stay (MinLOS) can only work effectively when you add a suited pricing strategy. Here is how you can set your prices to get the most out of your MinLOS strategy.
Keep an eye on competitor pricing
Before setting your rates, analyze the average daily rate (ADR) in your market. This gives you a benchmark to ensure your pricing is competitive yet profitable.
How to find your competition’s ADR on Airbnb
- Go to your performance dashboard.
- Navigate to ‘Insights’ via ‘Menu’
- Click on performance and navigate to ‘Occupancy and rates’
- Check the ‘Nightly rate’ tab
- Compare with similar listings
Airbnb cities average daily rate:
- Major cities (e.g., Miami, Orlando): ADR typically ranges between $150 – $300 per night.
- Smaller towns & rural areas: Expect lower ADRs, averaging $80–$150.
- Seasonal destinations: Ski resorts see ADR spikes in winter, while coastal areas peak in summer.
This list shows recent data on the 25 cities in the US with the highest ADR.
How to set daily rates on Airbnb for seasonal properties
Regularly check Airbnb’s pricing suggestions and compare rates for similar listings in your area. If competitors are offering weekend deals or seasonal promotions, adjust accordingly, but don’t undervalue your property either.
How do you set length of stay on Airbnb
Airbnb allows you to set restrictions on how long guests can stay at your property, which can help you manage availability, revenue, and guest experience. You can configure this on a listing-level basis, adjusting for things like weekends, holidays, or off-peak seasons.
Airbnb custom length of stay
To set a custom length of stay on Airbnb, go to the listing page and navigate to the Availability section. There, you'll find options to specify minimum and maximum length of stay requirements for your listing.
Adjust Airbnb length of stay
The platform also allows you to adjust length of stay requirements based on the season. To set this, you’ll need to use seasonal pricing and restrictions.
- Go to your ‘Pricing’ settings.
- Select ‘Seasonal Pricing’ and create specific rules for peak and off-peak seasons.
- Under the seasonal settings, you'll see options for modifying the ‘Length of stay’. You can set longer minimums during busy times and shorter ones when demand is lower.
Airbnb custom length of stay for events or special dates
If you have special events or peak demand times, such as festivals or local holidays, you can set custom length of stay rules for those dates specifically. Airbnb allows you to set blackout dates or minimum stay requirements, making it easier to tailor your listings for special circumstances.
Get more out of your MinLOS strategy with listing optimization
To get more out of your MinLOS (Minimum Length of Stay) strategy, focusing on listing optimization is key! Here are some content-driven tips that directly tie into MinLOS adjustments:
Targeting longer stays (High MinLOS)
When you set a higher MinLOS (e.g., 3+ nights), adjust your listing content to align with the benefits of extended stays. Consider these content changes:
- Update title and description: Highlight the value of longer stays in both the title and description, such as “Perfect for a weekend getaway or extended stay.”
- Amenities: Emphasize amenities that cater to long-term guests, like kitchen facilities, workspace, or laundry services.
- Local Attractions: Promote local events, attractions, or seasonal activities that may attract guests to staying longer.
- Guest Reviews: Showcase reviews of guests who stayed longer and loved it in your description.
Flexibility for shorter stays (Low MinLOS)
When adjusting for a lower MinLOS (e.g., 1-2 nights), your content should focus on convenience and availability:
- Update the title and description: Use phrases like “Last-Minute Availability” or “Book a Quick Stay” to highlight flexibility for short stays.
- Highlight Instant Book: If your property offers Instant book, mention this to attract guests looking for quick, hassle-free reservations.
- Add promotions: In the description, mention discounts for shorter stays or special deals like “Book Now, Stay Tonight!”
Adapt listing based on guest search behavior
Use AutoRank to fine-tune your listing content automatically. The solution tracks changes in guest behavior and search patterns, automatically adjusting your Airbnb listing’s content to reflect what guests are looking for, this helps your listing stay relevant and competitive.
On top of that AutoRank helps optimize the title and description for higher visibility by automatically adjusting keywords based on market demand and guest search trends. For example, if your area experiences a sudden increase in short-term bookings, AutoRank will update your content to attract these guests.
MinLOS & listing optimization checklist
To summarize, we added a checklist to this blog to help you decide when to pick what strategy in order to maximize your revenue and we added some tips for your listing optimization to get the most out of your strategy.
Get your personal version of the checklist here.
Conclusion
Getting the balance right between Length of Stay (LOS) and Average Daily Rate (ADR) can be a game-changer for your short-term rental. By understanding how these two work together, you can craft a pricing strategy that boosts your revenue and keeps your property booked.
It’s all about staying flexible and data-savvy. Keep an eye on trends, tweak your pricing, and don’t be afraid to test new strategies. Tools like AutoRank can even help you optimize your listing automatically, so you’re always one step ahead.
Ready to see how it all works? Book a demo today and let’s get your STR performing at its best.
Extra information:
Understanding the concept of ‘length of stay’ and ‘average daily rate’
Before you learn how to set the perfect MinLOS strategy for your accommodation, we have to define the dynamic duo that will be the protagonists of this blog.
What is ‘average daily rate’ (ADR) in the STR industry
The ADR (average daily rate) or ANR (average nightly rate) tells you how much you’re charging on average for each occupied night.
ADR formula = Total Revenue ÷ Number of nights sold
The Average Daily Rate (ADR) refers to the average revenue earned per rented night. It’s calculated by dividing total income by the number of booked nights.
What exactly is ‘length of stay’ (LOS) in the STR industry
‘Length of stay’ or LOS is exactly what it sounds like, how many nights your guests stay.
MinLOS explained
MinLOS is to the restriction on the minimum number of nights a guest must book to stay at your property. This strategy is important to control booking patterns and ensure you get the most value out of each guest.