Occupancy rate of star hotels in Indonesia 2023, by month

In 2023, the highest occupancy rate of star hotels in Indonesia was in December, with a rate of approximately **** percent. Meanwhile, the lowest occupancy rate occurred in April, at ***** percent. 

Indonesia’s hotel industry

Indonesia’s hotel industry accounts for the largest segment of the country’s accommodation sector. The industry boasts more than **** thousand hotels across the country, with the number of rooms reaching *** thousand in 2021. At the lowest point of the coronavirus (COVID-19) pandemic in 2020, the industry saw a sharp decline in revenue as the government imposed social and border restrictions. However, the hotel industry in the country is now gradually recovering as measures against COVID-19 were eased, with industry revenue approaching pre-pandemic levels.

Vacation rentals are gaining traction

Although the industry is still relatively small, vacation rentals are picking up steam across Indonesia. The vacation rental industry offers travelers a more cost-effective alternative, especially for those traveling in big groups. Market players, such as Airbnb and Travelio, a local startup, have made vacation rentals more accessible for consumers. In 2022, the industry recorded annual revenue of approximately *** million U.S. dollars and is expected to reach around *** million U.S. dollars by 2027.