Because occupancy reflects both supply and demand it measures the economic health of the individual hotel and, indeed, of the entire industry.

Question

Quizplus · Accepted Answer

Occupancy rates are a key indicator of demand for hotel rooms relative to the supply. High occupancy rates can indicate strong demand, potentially signaling good economic health for both the individual hotel and the broader hospitality industry. Conversely, low occupancy rates might suggest weaker demand, possibly indicating economic challenges for the sector.

Because Occupancy Reflects Both Supply and Demand It Measures the Economic