Hotel Occupancy in Yogyakarta Soars During School Holidays, but Costs Bite

Hotel occupancy rates in the Special Region of Yogyakarta (DIY) reached 70 per cent during the 2026 school holiday period. Despite the increase in guests, businesses say they cannot breathe easy because of soaring operational costs that have prevented revenue from recovering.

This was conveyed by the Chairman of the Indonesian Hotel and Restaurant Association (PHRI) DIY, Deddy Pranowo. He said that during the period of 17 to 25 June 2026, occupancy increased by around 20 per cent compared to normal days and the previous school holiday period.

“For reservations, our data from 17 June to 25 June averaged 70 per cent. This applies to both star-rated and non-star-rated hotels that are our members in DIY. It is still dominated by the central city area (Yogyakarta City) and also Sleman,” Deddy said when contacted on Thursday (25/6/2026).

Nevertheless, Deddy stressed that the condition of the hotel industry has not fully improved. The increase in occupancy rates has been accompanied by a surge in operational costs.

“Seventy per cent does not mean conditions are fine. The increase in occupancy is also accompanied by a rise in operational costs. Raw material prices are up, air conditioning servicing costs are up, everything is going up now,” he said.

Deddy noted that hotel operational costs have increased by around 15 to 25 per cent. On the other hand, business owners have not dared to raise room rates because people’s purchasing power is considered to still be weak.

“We cannot adjust room prices to match operational costs. Why? Because people’s purchasing power is currently declining. So PHRI members are merely surviving at the moment,” he said.

Deddy revealed the dilemma currently faced by hotel entrepreneurs. If room prices are raised, there is concern that the number of guests will actually drop.

“There is an increase in operational costs, but we have not dared to raise prices. Rather than having no guests, in the end this is only enough to survive. In terms of occupancy it is up, but in terms of revenue we are down,” he explained.

In addition to continuously rising operational costs, Deddy said the hotel industry has also been affected by recent power supply disruptions. He added that voltage fluctuations have also reportedly caused damage to electronic equipment in several hotels.

“The impact is an increase in operational costs. We have to buy diesel, Pertadex. That adds to the costs,” he said.

“Around four to five hotels reported damage to electronic goods such as water heaters, televisions, computers, and others. Repairing them also adds to the costs,” he added.

To reduce expenditure, hotels are implementing energy efficiency measures. However, Deddy assured that these efficiency measures are not being carried out at the expense of service quality for guests.

“What is being done, for example, is turning off lights or unused areas. But we would not dare to lower service quality or hospitality. Efficiency must not damage the hotel’s image,” he concluded.