The hotelier’s guide to stay restrictions: Tips and tactics from a revenue manager

One tool that revenue managers and commercial strategists at larger hotels and chains have long relied on are stay restrictions. When operating on your own or with a small team, however, implementing these strategies can feel overly complex, time-consuming or perhaps too trivial to even think about.

You may not have the time or expertise to change these settings regularly and analyze results to fine-tune them more. But what if you can still use stay restrictions to your advantage, without dedicated staff or a degree in revenue management?

Here’s the truth: restrictions are one of the simplest yet most effective tools in revenue management. And with the right automation, you can remove the guesswork – letting the technology work quietly behind the scenes to boost your profitability.

We had a chat about restriction strategies with Virginia McShane, member of the Revenue Strategy Services team at Lighthouse with years of boutique hotel experience under her belt. In this blog, she shares her go-to tactics and expert insights to help independent hoteliers like you set the right restrictions for maximum results.

Read on to discover:

• What stay restrictions are and how they relate to revenue management.

• Best practices on how and when to set restrictions.

• Real-world examples and tips from a hotel revenue expert.

• How you can increase revenue effortlessly by automating restrictions.

Let’s explore what stay restrictions are, how experienced revenue managers leverage them, and how you can too.

What are hotel stay restrictions?

Stay restrictions or stay controls are settings that determine what guests can book and when. They act as a filter, only allowing guests to book when they are searching for specific lengths of stay, or for certain arrival and departure dates.

These stay restrictions are typically determined well in advance by using a demand forecast. Multiple restrictions may even be combined to create very specific, optimized booking patterns over high-demand periods. No matter the stay control, the goal is always to maximize revenue for your bookings and avoid leaving too many rooms empty.

These are the five restriction types used in revenue management:

• Minimum Length of Stay (MinLOS): Guests must book at least a certain number of nights in a row.

• Maximum Length of Stay (MaxLOS): Guests can’t stay longer than a specified number of nights.

• Closed to Arrival (CTA): Guests can’t check in on certain dates.

• Closed to Departure (CTD): Guests can’t check out on certain dates.

• Minimum Price (Hurdle Rate): Guests can’t book below a certain rate.

Why are restrictions important in hotel revenue management?

In a nutshell, restrictions protect high-value dates from going to waste and avoid money left on the table by favoring higher-value bookings or guests.

By strategically aligning restriction settings with (forecasted) demand, you can maximize revenue per available room (RevPAR) and prevent revenue loss from unsold rooms during peak times, while boosting occupancy during slower periods. When done right, it also encourages longer stays, which drives additional revenue to your restaurant, bar, spa and other services.

Lighthouse revenue expert Virginia McShane can’t overstate the importance of restrictions: “Restrictions are one of the most underutilized yet effective revenue levers for independent hotels. They allow you to control who books when and at what value, without changing your entire pricing strategy. For boutique or lifestyle hotels with limited inventory, every room night counts. Unlike branded hotels that may absorb inefficiencies with scale, smaller properties need to be sharper and more protective of peak periods.”

Big hotel groups have long been leveraging restrictions as part of their revenue strategy to make sure every room brings in the most profit possible. For example, revenue managers will block one-night stays during busy weekends to ensure rooms are occupied for at least two nights by the same guest. Or they’ll set a minimum price to avoid filling rooms too easily with low-value bookings, when higher-paying guests might just as well be interested.

Independent hotels often miss out on these hidden opportunities, leaving their availability wide open to any booking, even the ones that aren’t profitable. The result is that larger competitors receive more income for the same room on the same night, simply because they have the resources to monitor and respond to demand patterns. This only strengthens their market position further, making it harder for smaller accommodations to compete.

It’s time to level the playing field! Below, you’ll find key restriction strategies and how to apply them – explained by experienced Lighthouse revenue manager Virginia McShane.

Let’s break down how each type of restriction can be used to boost your bookings, revenue and profits.

Restriction #1: Minimum Length of Stay (MinLOS)

What is it?
The MinLOS control requires guests to book a minimum number of nights, which is especially valuable during high-demand periods or popular events. It prevents guests from booking very short stays, which can create gaps in occupancy and add extra work for housekeeping and front desk teams due to more frequent check-ins, check-outs and room turnovers. Setting a minimum length of stay can also be used to boost occupancy on shoulder dates (right before or after peak demand) by encouraging guests to extend their stays at an attractive rate.

When to use it: During holiday periods, bank holidays, local events, (peak) weekends and on shoulder days

Example: You’re expecting high demand during a local event. By setting a 2-night minimum, you avoid one-night bookings that block your calendar and prevent longer stays while there is a larger influx of travelers.

Watch out for: Setting an unrealistically long MinLOS requirement, scaring off bookings.

MinLOS is often activated for weekends. That way, people who book to arrive on Friday will have to stay until Sunday, preventing missed revenue or bookings on Saturday. Travelers often want to get the most out of their trip by booking until Sunday. However, if your room is already sold from Friday to Saturday, those higher-value guests can’t book 2 nights and the room might go unsold for the night from Saturday to Sunday. During long weekends or major events in your area, the minimum can be bumped up to 3 or 4 nights, stretching stays beyond the weekend.

“MinLOS is my favorite restriction to apply, especially for independent hotels in leisure destinations or near major events,” Virginia tells us. “For example, a 20-room luxury inn near a wine region we worked with often had one-night stays on Saturday that left Friday and Sunday unsold. We implemented a 2-night MinLOS on Saturdays over peak periods. We saw occupancy smooth out across weekends, ADR increased thanks to bundled demand, and total weekend revenue rose year-over-year.” Virginia continues: “Implementing MinLOS2 for Saturdays also reduced housekeeping strain by cutting turnover, so the number of guests checking in and out in one weekend.”

Restriction #2: Maximum Length of Stay (MaxLOS)

What is it?
The MaxLOS restriction limits the number of nights a guest can stay in one booking. It can be applied right before demand and occupancy are expected to rise, in the run-up to a major event, for example. The aim is to maximize profitability without interfering with these upcoming peak dates.

By setting a maximum length of stay, you can save room inventory for multiple high-yield bookings instead of accepting a single long-stay booking at a lower rate. This keeps you from leaving money on the table during strong demand spikes due to blocked availability.

Example: Someone wants to book a full week in June, but you anticipate selling the last 4 nights at a higher price later because a large international conference is happening close to you. Restrict stays starting before the conference and increase rates during the event. This prevents a low-rate booking from occupying the room through the event, so you can sell those peak nights at higher prices.

When to use it: Sparingly, on dates leading into peak periods, right before major events or for discounted rates during quieter periods.

Watch out for: Losing bookings because you apply it too early, demand is not high enough or the stay length is too short.

Applying MaxLOS is particularly useful to capture event-driven demand, around other peak periods, and when you’re running off-season promotions with discounted rates. By limiting long stays in certain periods, you can free up rooms to accommodate more guests at a higher rate. Setting a MaxLOS of 3 nights right before the start of a very lucrative week, for example, lets you accept shorter bookings at lower rates without blocking better-paying opportunities. This approach allows you to respond more flexibly to increased demand with premium pricing.

Alignment with demand is key for this restriction to be effective. Use hotel demand forecasting and your own historical data to time this restriction precisely, or choose a smart tool that automates restrictions based on this data. Consider applying a MaxLOS for a lower-demand period that is interrupted by a very large event or holiday that needs to be guarded and justifies higher rates. As with all restrictions, be flexible and review them frequently as demand evolves.

Restriction #3: Closed to Arrival (CTA)

What is it?
The Closed to Arrival (CTA) restriction prevents check-ins on specific high-demand dates – for example, on Saturdays during events or holiday periods – and encourages guests to arrive on adjacent "shoulder" nights with slightly lower demand. This strategy prevents single-night bookings and converts them into longer stays, resulting in higher occupancy and total booking revenue.

By applying CTA, you reserve peak nights to guests who stay longer and reduce operational strain from last-minute or one-night arrivals. It ensures your rooms remain available for guests staying through high-demand periods, rather than those booking for the busiest night only, which can leave rooms empty and hurt your profitability.

Example: A big music concert in your city is coming up on a Saturday and your hotel is likely to sell out. Restrict arrivals on Saturday (instead of accepting last-minute one-night bookings), so guests are encouraged to arrive on Friday – adding an extra night to their stay and boosting your revenue for the weekend.

When to use it: On dates that get many one-night stays or with limited staff capacity.

Watch out for: Lost bookings, unhappy guests or unsold rooms caused by a lack of flexibility, weak demand or unappealing offers.

You may notice CTA can be used as an alternative to MinLOS in some cases, with similar outcomes but some interesting advantages. Virginia explains: “A clever trick is using CTA on Saturdays if you consistently get one-night weekend stays. This forces guests to arrive on Friday, leading to two-night minimums without even setting a MinLOS. It’s a subtle nudge that’s often more effective (and less visible to the guest) than setting a hard restriction. Pair it with flexible cancellation or small perks like late checkout, and you’ll often see longer stays while keeping guest satisfaction high – plus happier staff with fewer turnovers to handle.”

As with any stay restrictions, using them too much or at the wrong times can have adverse effects. Always review your Length of Stay by Arrival Date, pickup trends and seasonality before applying CTA or MinLOS settings. “When using CTA, be mindful of your market and booking patterns,” Virginia cautions. “If you frequently attract guests who do stay multiple nights beginning on Saturdays, this tactic could backfire and displace high-value bookings. Restrictions should enhance the guest flow, not block it.”

Restriction #4: Closed to Departure (CTD)

What is it?
The stay restriction Closed to Departure (CTD) prevents guests from checking out on certain dates to ensure rooms are booked during key periods. It can also help reduce staff’s workload on busy days such as public holidays when staffing is limited.

CTD is commonly used around holidays, weekends, or event days when you want to maintain full occupancy and avoid having empty rooms on high-demand nights. By blocking departures, this restriction encourages guests to extend their stays, which boosts both length of stay and total booking revenue.

Example: You notice that guests checking out on Saturday often leave your Sunday nights empty. By applying a CTD on Saturday, you shift departures to Sunday or Monday. This extends your weekend occupancy and reduces turnover costs – all without having to change your pricing or create special offers.

When to use it: Around events, holidays and other peak-demand dates or when staff capacity is limited.

Watch out for: Lost bookings from using CTD too broadly, especially when demand is not high enough.

Apply CTD selectively during peak-demand periods or when your data shows clear advantages. Just as is recommended for CTA, consider offering incentives for extended stays, adding real value for your guests – not just your bottom line.

Restriction #5: Minimum Price (Hurdle Rate)

What is it?
A Minimum Price restriction or Hurdle Rate sets a floor price for a room on a given night, ensuring rooms aren’t sold below a certain price when demand is strong. That way, only higher-paying guests can book those rooms – prioritizing profitability over booking volume. A price hurdle helps protect your RevPAR by rejecting low-value or discounted bookings on high-demand dates. It’s particularly useful during holidays, peak seasons or major events happening in your area.

Example: You’ve set a hurdle rate of €200 for New Year’s Eve – a highly popular stay date. When a guest tries to book a single night at €150, the booking system will reject it unless they add another night or select a premium room type or rate plan. This ensures your limited inventory is sold at the best possible rate.

When to use it: Dates with strong demand or last-minute bookings when your occupancy is already high.

Watch out for: Overpricing and missing out on good opportunities.

Extra tips and best practices for setting stay restrictions

Now that you know which stay controls can be used in which scenarios, it’s time to refine your strategy through some final tips and best practices. After all, these settings require careful consideration, and there are a few pitfalls to avoid.

We asked our revenue expert Virginia which restrictions are an absolute must. “At a minimum, MinLOS and CTA are vital,” she responds. “These help you shape the type of bookings you accept during high-demand periods and avoid undesirable one-night stays that block better opportunities. Especially with lean teams, using restrictions smartly means less operational stress and more profitability.”

It’s important not to overuse restrictions, as they can deter guests and limit your visibility on OTAs. Instead, apply them strategically on specific dates when the revenue gains are certain to outweigh lost or shorter bookings. When in doubt, don’t restrict. Whether you implement them always depends on these internal and external factors:

• Historical occupancy and demand patterns

• Actualized prices

• Pickup and pace

• Competitor behavior (you don't want to be the only hotel with 1-night availability over a major event)

• Your (ideal) guests’ booking habits

• Current occupancy

• Demand forecasts

• Event calendars

Other vital factors in the equation are staffing costs and guest flow. Virginia clarifies: “Staffing must be taken into consideration, especially for independent hotels with lean teams. If you only have one housekeeper and no overnight front desk, accepting five 1-night bookings can be more costly and stressful than two 3-night stays.”

Finally, stick to these five best practices for the best results:

• Make sure you have access to accurate historical and real-time data.

• When in doubt, don’t restrict. It’s better to play it safe and wait for a better opportunity.

• After setting restrictions, test them to make sure they’re working properly on all channels, avoiding missed bookings.

• Closely monitor your performance and fine-tune your restriction strategy accordingly.

• Be transparent towards guests about restrictions to avoid dissatisfaction or confusion.

Automate restrictions to increase revenue while saving time

Stay restrictions shouldn’t just be for the big hotels and chains. They’re a powerful tool to increase revenue and profitability, even for small hotels and B&Bs without dedicated revenue managers or commercial teams. That’s where smart automation comes in, designed to help independent hoteliers boost revenue without adding to their already heavy workload.

With Lighthouse’s AI-powered platform, you receive optimal rate and restriction recommendations, based on the industry’s most accurate and trusted datasets. These suggested updates can be sent to your website and OTAs in one click or fully automatically – it’s up to you!

The advantages of automating your restrictions?

• Increase booking value

• Protect high-demand dates

• Minimize calendar gaps

• Make the most of every room

• Avoid costly human errors

Leverage optimized restrictions, dynamic pricing, and smarter distribution to take full control of your revenue strategy – maximizing every opportunity while saving time. Lighthouse does the heavy lifting for you, so you can focus on guest service.

Are you looking to elevate your distribution strategy and boost profitability? Learn more about smart distribution in this blog or request a free demo of our solution below. We’re happy to personally guide you through our all-in-one platform for independents. No fluff – only what you actually need to stay competitive and profitable in today’s challenging hotel industry.