Why is the hotel industry a fixed cost industry?

Hotel industry is a fixed cost industry, which lies in one-time investment. According to relevant public information, the hotel industry is an asset-intensive industry. Rent, decoration, utilities and labor are all fixed costs of the hotel. If the hotel occupancy rate is too low, it is easy to cause hotel losses. In order to prevent losses, the hotel should find some travel agencies and third-party agents to seek cooperation, increase hotel income and prevent losses.