Abstract
With a longitudinal dataset merging hotel performance and guest survey insights, this study examines the impact of hotel occupancy rates on the guest experience. Findings revealed a non-constant effect of hotel occupancy on the guest experience. Specifically, at low occupancy levels, the hotel occupancy rate was positively related to the overall guest experience due to an improvement in the environmental vibe. Conversely, at high occupancy levels, the hotel occupancy rate was negatively related to the overall guest experience, as high occupancy diminished guest experiences’ during service interactions. Findings from this research make notable contributions to theory, presenting a fuller account of the complex relationship between hotel occupancy on the guest experience. In addition, these results are practically relevant, shedding light on how hotels can prepare for the post-COVID occupancy rebound.
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