The Hidden Cost of Removing a Length of Stay Rate Plan: Revenue Management Strategy Case Study
How a decision to remove a 2-night length of stay rate plan in pursuit of higher rates led to reduced channel visibility and a weaker overall performance month.
%
Base Rate Adjustment
Offset the 5% discount on net ADR
%
Projected CTR Recovery
Returning to above-peer performance
The Challenge
A well-performing hotel sought to improve its average daily rate (ADR) by removing a 2-night minimum length of stay (LOS) rate plan that offered guests a 5% discount on qualifying stays.
Two-night stays were consistently the most common booking length across the property. The hotel’s view was that guests were booking at this length regardless, meaning the 5% discount was simply giving away margin on stays it would capture anyway. The decision was made to remove the plan and allow the full rate to apply across 2 night stays.
The Solution: Implementing a Minimum Length of Stay Strategy
Nuvho was engaged to manage the hotel’s channel performance across the period. As part of ongoing channel oversight, Nuvho monitored key distribution metrics including click-through rate (CTR) and visibility performance benchmarked against a peer group of similar properties.
When the hotel removed the LOS rate plan in February 2026, Nuvho tracked the immediate impact across the channels, providing the data and analysis needed to understand the consequences and define the path to recovery
Key Outcomes
Removing the 2-night LOS rate plan produced an immediate and measurable decline in channel visibility. Three figures tell the story:
%
Property CTR
February – Lowest of the entire period
%
Peer Group CTR
February – Stable all period
%
CTR Gap vs Peers
Largest gap recorded all period
Before the plan was removed, the property was outperforming its peer group on click-through rate every month. From September to November 2025, CTR averaged 6.1%, running 25 to 40% above peer benchmarks. The removal of the LOS plan in February reversed that advantage entirely.
The Results
The channel data showed a clear and direct relationship between the rate plan removal and the drop in visibility. The peer group held its CTR steady throughout between 4.3% and 4.9%, in every month without exception. The property’s drop to 2.9% in February was isolated entirely to this property and timed precisely with the removal of the plan.
The result was the weakest channel month of the eight-month period not because demand dropped, but because the property was no longer being surfaced to the same volume of guests searching the platform.
Click-through rate by month:
| Month | Property CTR | Peer Group CTR |
| Sep 2025 | 6.2% | 4.3% |
| Oct 2025 | 5.9% | 4.8% |
| Nov 2025 | 6.1% | 4.5% |
| Dec 2025 | 4.0% | 4.6% |
| Jan 2026 | 4.3% | 4.5% |
| Feb 2026 | 2.9% | 4.6% |
| Mar 2026 | 3.9% | 4.9% |
| Apr 2026 | 4.5% | 4.5% |
Feb 2026 marks the month the 2-night LOS rate plan was removed. Peer group CTR remained flat throughout the entire period.
Conclusion:
The intention behind removing the length of stay rate plan was commercially sound, to protect ADR on the hotel’s most common stay type. However, the data shows that LOS rate plans serve a purpose beyond the discount itself. They act as active signals within distribution platform algorithms, and their removal can directly reduce a property’s search visibility.
Nuvho’s recommendation was to reinstate the LOS rate plan and offset the 5% discount by adjusting the base rate upward by 3 to 4%. This approach restores channel visibility while protecting net ADR, achieving both objectives rather than trading one against the other.
%
Base Rate Adjustment
Offset the 5% discount on net ADR
%
Projected CTR Recovery
Returning to above-peer performance
Revenue Management Strategies in the Hotel Industry: Lessons From This Case Study
Rate plans do more than move margin, they send signals to the platforms your guests are searching on. This case study is a reminder that revenue management strategies in the hotel industry rarely have just one consequence: a decision that looks commercially logical in isolation can quietly erode the visibility that drives bookings in the first place.
Removing a rate plan to protect ADR is a reasonable instinct. But without the data to track what happens next, it’s easy to lose more than you gained.
Nuvho specialises in hotel revenue management and distribution, helping properties across Australia & EMEA make smarter rate decisions backed by real channel data.
About Nuvho
Nuvho specialises in outsourced revenue management, sales representation & digital marketing – helping properties across Asia-Pacific & Europe take control of their performance and grow with purpose. Whether you’re looking to diversify revenue streams, strengthen your corporate base, or improve your occupancy strategy, our expert team can help.
Ready to improve your hotels profitability?
Stay ahead of the curve with Nuvho’s targeted strategies designed to maximise revenue, increase occupancy, and attract the right guests to your hotel.
