Reasons For Low Occupancy in Hotels

Even with getting everything right for your hotel there are times when you’re not able to achieve the desired occupancy level. You are sourcing the leading hotel supplies; such as DZEE hotel supplies which includes wholesale towels and more; and also have a beautiful building and everything in between. Well, if you still have low occupancy that means you are doing something wrong. But the best part about everything is that most hotels problem resulting in low number of guests are easily solvable. All you have to do is identify your reasons for low occupancy in hotels and then work on a solution.

What is Low Occupancy in Hotels?

Hosting guests and lending out the maximum number of rooms is the main job of the hotel. When there are more rooms free in comparison to those occupied that means the hotel is facing a low room occupancy problem. It is a leading hotels problem globally. You would find many hotels getting less visitors and bookings and having more rooms empty.

You could say, hotels having 70% to 95% room occupancy have a good occupancy rate. Below 70% hotels need to work on their strategy to increase room occupancy.

Why is there Low Occupancy?

If your hotels problem includes not having enough guests, then these could be the following reasons which you need to fix.

·       A New Hotel in Town

Establishing a new business is difficult for everyone, this is also true for the hospitality business. One of the reasons for low occupancy in hotels is because guests are a little skeptical about giving a new hotel a chance. They prefer reviews and feedbacks from other people or even influencers before they make a booking with them. You need to work on strong marketing plan that puts out a positive image of your hotel. If you have a plan, then you need to reanalyze and improve it because it is not impactful.

An impactful marketing plan will give your hotel the boost it needs to increase guest occupancy.

·       Online Visibility Hotels Problem

If you’re not easily visible online, it is no wonder you’re facing low occupancy. Every successful hotel, new or old has a very strong online presence. This includes showing up in searches, having an online blog & website, and most importantly on social media. Though, creating a strong online presence and visibility takes considerable amount of patience, consistency, and time. That is if you’re focusing on organically increasing your traffic. There are paid tools you can work with but you need a professional to help you with that. Low occupancy is usually a hotels problem because guests don’t know of its existence. The first thing they do is search a hotel property online and then make their opinion about it. By working on your online presence, you increase your chances of increasing room occupancy rate.

So, work on your website, SEO, and even try to get featured in other people’s blogs and stories to reach out more potential guests.

·       Wrong Guest Targeting

Every hotel has its potential guest types, one hotel is more kids friendly so they encourage family bookings; while the other leans more towards hosting business professionals or solo travelers. You need to identify your target travelers and market to them. The more sorted you are, the better you will be able to target your travelers and increase the low occupancy rates. This is a common hotels problem especially when they are new in the hospitality business. So, reanalyze your target guests and start marketing to the right people.

The sooner you have your target audience sorted, the better marketing plan you are able to make for your hotel.

·       No Repeat Guests

Finding new guests is important but repeat guests are the real spenders. You need to give your guests an incentive to visit you again. Once they have experienced the high-quality and comfortable stay at your hotel, you need to keep reminding them of your existence. Loyalty programs, and various exclusive discounts throughout the year sometimes gives them a reason to travel. When you encourage repeat guests, you don’t increase the low occupancy rate but also increase the revenue earned. Remember, repeat guests in majority spend more than your new guests.

So, bring down the low guest occupancy rate and deal with the hotels problem smartly by encouraging those who already love your hotel to visit more frequently.

·       No Local Business Partners

Your neighborhood and city have so much to do if you look at it from a tourist’s point of view. Getting into a partnership which allows the different local businesses and attractions who can refer you guests is helpful. Together you can tackle the hotels problem of low occupancy; and the business’s problem of low visitors. This also is especially helpful for new hotels which are still trying to establish themselves. Referrals from businesses that are trusted by everyone always has a positive impact on your hotel’s reputation.

Find your partners and market your partnership accordingly. Guests prefer staying at a hotel that helps them connect with the local experiences rather then them doing the difficult work of; looking for everything themselves.



Reasons for low occupancy in hotels depends on various factors. What do you think is the most impactful hotels problem that causes low occupancy and how can hotels solve that issue? Let us know in the comments below.


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