Lighthouse Quick Takes - Length of stay controls on compression nights
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In this Lighthouse Quick Take, Blake Reiter explores how selling the last room on a compression night can cost a hotel more than it earns. Using a hypothetical 200-room downtown property at 199 rooms sold on a Wednesday, he shows how a $189 one-night booking displaces a four-night stay worth $944, including $755 on Thursday through Saturday nights that finish the week with empty rooms.
Blake explains why this loss rarely appears in standard reports, how a two-night minimum stay and a step-down minimum stay can protect inventory, and why the approach carries risk if multi-night demand does not materialize. Listeners will understand how to review 90 days of arrivals and denials data to decide when length of stay restrictions improve revenue across the whole week.
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