Length of Stay Discount Calculator
Find out whether a "stay longer, pay less" offer will make you more money or simply give away revenue.
Should you offer a long-stay discount?
"Stay 4 nights, get 15% off" is one of the most common offers on Indian OTAs and hotel websites. It can fill empty midweek nights and cut the work of check-outs, but it also gives away money on nights you might have sold at full price. This calculator compares a normal month with a month that includes your length-of-stay (LOS) offer, so you can see whether the extra occupancy and lower turnover cost really pay for the discount.
How the comparison works
- Without the offer: room nights = rooms × 30 × current occupancy. Stays = room nights ÷ current average stay.
- With the offer: occupancy rises by the gain you expect. The share of room nights that uses the offer is sold at the discounted rate, and those guests stay the minimum nights, so there are fewer check-outs.
- Costs: every occupied night has a running cost, and every stay has a turnover cost for full cleaning, linen and laundry.
The tool also shows the occupancy gain you need just to break even. If you cannot realistically win that many extra nights, the offer will lose money.
When LOS discounts work well
- Midweek and off-season periods when rooms would otherwise stay empty.
- Destinations with long-stay demand such as hill stations, workations, medical travel and project teams.
- Homestays and small hotels where each check-out takes a large share of staff time.
When to avoid them
- Peak season, long weekends and festival dates when you would sell every night anyway. Close the offer on those dates.
- When the discount pushes your rate below your cost floor — check it with the hotel room rate calculator.
- When most guests would have stayed that long anyway. Then you are only discounting existing business.
Pair the offer with a non-refundable or advance-payment condition to protect against long-stay cancellations; see the cancellation loss calculator.
Frequently asked questions
What is a good length of stay discount for hotels?
Many properties test between 10% and 20% for stays of 3 to 7 nights, but the right number depends on your costs and demand. Use this calculator to check the occupancy gain you need before you publish an offer.
Why does a longer stay reduce costs?
Each check-out needs a full room clean, linen change and laundry. Guests staying longer create fewer check-outs per room night, so turnover cost per night falls.
Should I offer long-stay discounts in peak season?
Usually not. In peak season you can often sell every night at full rate. Restrict long-stay offers to low-demand dates and close them on long weekends and festivals.
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