Three-night minimums boost short-term rental revenue over one-night bookings, new study shows

Short-term rental listings with minimum stays of three to four nights generate significantly higher revenues than properties allowing shorter bookings.

That finding contradicts the long-held assumption that shorter stays always drive more bookings.

The data comes from a new research study, which examined booking patterns and revenue performance across thousands of listings by Hospitable and IntelliHost, according to Hospitality Technology.

Why longer minimums drive higher earnings

Properties with three to four night minimums attract guests who book further in advance and stay longer, both factors that correlate with higher total revenue per reservation.

Single-night bookings often result in higher turnover costs and lower average daily rates as hosts compete for last-minute travelers.

The report found that longer minimum stays were tied to stronger revenue performance across several property types. One-bedroom listings requiring at least four nights generated median annual revenue of $32,060, compared with $23,822 for similar listings that allowed one-night bookings.

Larger homes saw a similar pattern, with four-bedroom properties using four-night minimums bringing in meaningfully more revenue than comparable homes open to one-night stays.

The data also pointed to a tradeoff on longer reservations. Stays of 30 nights or more that were booked months in advance carried higher cancellation risk, suggesting operators may need to balance longer booking windows with stronger cancellation policies and guest screening.

The finding carries weight for operators who have relaxed minimum stay requirements to capture what they believed was untapped demand. Many markets now show that tighter stay policies filter for higher-value guests while reducing operational strain.

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Operators using dynamic pricing tools can test the threshold where minimum stay length maximizes revenue without sacrificing occupancy. The balance varies by market, but the data suggests most owners set minimums too low rather than too high.

With occupancy rates stabilizing across major markets, revenue growth now depends on attracting guests who book longer stays at sustainable rates rather than filling calendars with one-night reservations that drive up expenses.