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 59.7 percent. Meanwhile, the lowest occupancy rate occurred in April, at 41.37 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 3.52 thousand hotels across the country, with the number of rooms reaching 720 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 410 million U.S. dollars and is expected to reach around 610 million U.S. dollars by 2027.