Overall Market Analysis
Occupancy
With an average of 63.1 occupancy percantage, the luxury hotels have the lowest number compared to other hotel types.
This is a typical phenomenom because the demand for high priced luxury hotels are usually lower.
With decreasing prices, the demand rises. Upper upscale hotels can expect a relatively high occupancy percentage.
Starting with 2017, Upper upscale hotels had the highest occupancy until shortly before the COVID outbreak appeared.
Upscale hotels had the highest overal occupancy on average.
This could be due to the fact that they provide various services and amenities that benefit both leisure and business guests who prefer luxury hotel trips with a cheaper price.
Upscale hotels managed to keep a relatively high occupancy during the pandemic, probably because they welcome business guests.
Upper Midscale hotels have average occupancy with 70.3.
They also have an average occupancy during the pandemic.
Midscale hotels are the second losers in terms of occupancy.
However, they managed to gain higher occupancy during the pandemic and are occupancy is expected to boom after the pandemic (according to McKinsey study)
Economy hotels became popular because they it possible to travel for cheap.
During the pandemic one can see the slowly upwards trend in occupancy.
