What is the concept of hotel occupancy rate of 70%?

70% hotel occupancy rate means that 70 rooms out of every 100 rooms are rented out, which is a key indicator of hotel operation. Generally speaking, the occupancy rate is one of the core indicators to measure hotel income, which is influenced by many factors such as market demand, competitors, hotel products, channels and prices.

For hotels, maintaining a certain occupancy rate can ensure the recovery of fixed costs, thus achieving profitability. Usually hotels will set an occupancy rate target, such as 70%, to maintain the operation of the hotel and make a profit. When the occupancy rate is lower than this target, the hotel may adopt some strategies to improve the occupancy rate, such as price reduction and promotion, improving service quality and improving facilities.

However, it should be noted that high occupancy rate may affect the customer experience. When the hotel occupancy rate is too high, it may face problems such as insufficient rooms and declining service quality, which may have a negative impact on customer satisfaction. Therefore, hotels need to balance the relationship between occupancy rate and customer experience in order to maintain a healthy operating state.