JAKARTA, KOMPAS — During this school holiday period, room occupancy rates have increased. However, standard room rates are lower compared to the same period in 2025.Maulana Yusran, Secretary General of the Indonesian Hotel and Restaurant Association (PHRI), revealed on Tuesday (July 7, 2026) that hotel occupancy rates increase during school holidays compared to normal days. Peak season can boost occupancy by up to 20 percent. However, regular occupancy rates are already relatively low.From the perspective of international tourist movement, Maulana continued, there has been an increase in visits to Indonesia. This is a result of the weakening of the rupiah exchange rate against the US dollar. The regions that have experienced the most significant influx of international tourists are still concentrated in Bali, Jakarta, and Batam (Riau Islands).At the same time, government and corporate activities in the hospitality sector remain minimal. Thus, this peak holiday season is not sufficiently optimal to boost hotel performance."As soon as the school holidays are over, when will occupancy occur? Can it still be maintained or will it plummet? This raises further questions due to the situation," he said.In general, the average occupancy from January to May 2026 remains below 2 percent, lower than the same period last year.Room rates downAnother issue concerns room rates. Maulana revealed that despite an increase in occupancy during the school holidays, room rates are actually 5-10 percent lower."From my perspective, the rate is probably 5-10 percent lower. The problem with the rate from the hotel's perspective is that the average occupancy is only 70 percent, which isn't reflected in the published rate. That figure would be achieved if occupancy were above 80 percent," Maulana said.The published rate is the maximum price, without any discounts the hotel charges customers. This figure serves as the baseline for retail prices.One of the largest components in a journey is accommodation. Amidst low purchasing power, according to Maulana, many people are downgrading their accommodation class to one- and two-star hotels. Nevertheless, certain groups still prefer three- to five-star hotels."If I notice, many budget hotels are busier during this year's holidays," he said.Contacted separately, Vice President of Human Resources at RedDoorz, Yona Aldila Pratama, stated that the school holidays significantly contribute to RedDoorz's performance as one of its targets is families.Current trends show that people prioritize convenient, affordable, yet memorable vacation experiences. Short trips, staycations, and exploring destinations within or near the city are popular options."Instead of reducing the frequency of vacations, many tourists are actually more selective in choosing accommodation that offers value for money, such as affordable prices, strategic locations, and an easy booking process," said Yona.During the school holiday period from June 22 to July 6, 2026, RedDoorz recorded positive growth. Room sales increased by 35 percent, while the occupancy rate rose to 54.55 percent.The hotel revenue components are significantly contributed by the food and beverage (F&B) sector, which accounts for 30-40 percent. Food and beverage packages are in high demand from meetings held at the hotel. Meanwhile, the contribution from room sales accounts for 20-30 percent of the hotel's revenue.Public spending increasesAccording to Bank Mandiri's Daily Economic and Market report, public spending began to increase during the school holidays. Using the Mandiri Spending Index (MSI), the spending index in the third week of June 2026, or the second week of the school holidays, reached 123.3 points, a 0.36 percent increase compared to the previous week."After several weeks of limited movement, shopping has begun to increase as the school holiday has entered its second week. Historically, shopping during the school holiday peaks in the last week of the holiday period, with an increase of between 1.8-2.4 percent compared to the average pre-holiday spending level," the report stated.All regions continued to experience positive growth in the third week of June. The highest increase was in Java with a weekly growth of 0.4 percent, followed by Sumatra and Sulawesi (0.27 percent), Kalimantan (0.26 percent), Maluku and Papua (0.22 percent), as well as Bali and Nusa Tenggara (0.12 percent).However, the highest annual (yoy) spending growth was contributed by Sulawesi (10 percent), Kalimantan (9.3 percent), and Bali and Nusa Tenggara (8 percent).According to the shopping group, all categories grew positively with the highest increase in mobility (0.53 percent weekly), followed by recreation or leisure (0.51 percent), electronics (0.4 percent), and household goods (0.37 percent)."This pattern indicates that the school holiday impulse is beginning to reflect in spending related to travel, recreation, and outdoor activities. Compared to the same period last year, this year's weekly growth is also higher in almost all spending categories," stated in the Bank Mandiri report.Reflecting on previous trends, the peak of school holiday shopping typically occurs in the final phase of the holiday period. This shopping momentum needs to be maintained.In response to this phenomenon, the Executive Director of the Center for Tourism and Indonesian Economic Studies, Muhammad Rahmad, stated that hotel room occupancy has indeed increased, but room rates have declined. Tourist destinations appear to be crowded, but this does not necessarily mean they are generating profits.At the same time, the middle class has shrunk in size, relegating it to the aspiring middle class. Yet, national consumption is dominated by these two groups."Traveling is a tertiary consumption item. It's the first item to be cut when households are under pressure. What happens isn't that people stop traveling, but rather downtrading, moving from four-star hotels to three-star, from five-day vacations to two-day ones, from inter-island to close to home," said Rahmad.During the school holidays, the Indonesian community will continue to choose to travel to meet their social needs. However, the holidays coinciding with the new school year compel parents to prioritize education amid the pressures of purchasing power. As a result, the duration of vacations is shortened, travel distances are reduced, and accommodation classes are downgraded.