Boarding House Business Doesn’t Make a Profit During Ramadan Shopping Euphoria

Jakarta, 18 February 2026 – Even though Ramadan is a moment that is synonymous with various campaigns and big discounts from clothing and F&B brands, the same excitement is not felt by the rental housing market. Based on internal data small bay, housing provider living together In modern times, Ramadan is actually the period with the lowest performance for the boarding house business or living together. The need for celebrations and going home has encouraged people to postpone expenses that are considered large financial commitments, including boarding house rentals.

“Every year, Cove sees a relatively consistent pattern where Ramadan is the period with the lowest transactions in one year. During the holy month, people will prioritize their short-term expenses, so that long-term expenses such as boarding houses will be secondary until Eid is over,” said Dian Paskalis, Director of Country Growth and Vice President of Online Marketing, Cove.

Boarding house bookings and occupancy weaken during Ramadan

Based on Cove’s internal data last year, the number of room bookings living together monthly during Ramadan was recorded to weaken to 11 percent compared to the average booking in the 3 months before the Ramadan period. This pattern exists because prospective residents realize that they will not occupy a room for quite a long time during the homecoming period, so they choose to start their rental period after Eid is over. In addition, this decline makes Ramadan the period with the lowest transaction value throughout the year, and this pattern has been consistently seen since Cove first started operating in Indonesia.

In terms of Cove room occupancy, there was a decrease of approx 0.5 percentage points from the beginning of the year, showing numbers occupancy rate by 84.5 percent during Ramadan. The moderate decline figures underscore that this trend is not due to weakening demand for boarding houses as a whole, but is more seasonal.

Ramadan triggers a lull in spending in segments with price sensitivity

Last Ramadan, Cove recorded level figures checkout on level Cove Basics properties reach 19 percenthigher than average checkout overall which was at 16 percent in the previous 3 months. Cove Basics is level property with an average monthly rent of IDR 2 million, the lowest of the two level others, namely Cove Classics and Cove Luxe. Level This is generally chosen by students or young workers, who tend to be more sensitive to residential rental prices.

During the homecoming period, a number of Cove residents took advantage of the momentum to temporarily stop renting to avoid paying while the unit was not occupied. In a number of cases, residents even re-booked the units they previously occupied after Eid. This phenomenon underlines that this is not a long-term shift in residential preferences, but rather short-term cash flow management, especially in segments that are more price sensitive.

One interesting behavior during Ramadan is that even though room rental transactions decrease, Housing search activity from prospective residents remains relatively high. Cove found that amount traffic during Ramadan last year it did not decrease significantly, but the conversion rate was lower compared to other months. They tend to contact only to find information regarding the unit they like without making a booking, or look for rooms to book after the Eid date.

Daily accommodation also sees a decrease in transactions during Ramadan

Not only Cove’s monthly rental offer, the daily rental line also recorded a decrease in transactions during Ramadan. Overall, daily room bookings fell to 14 percent compared to the previous month, with the deepest decline occurring in Bandung (37 percent). These findings show that apart from avoiding large financial commitments, people are also cutting back on lifestyle needs such as holidays during the month of Ramadan.

“The trend of decreasing transactions during Ramadan is a reminder for boarding house and accommodation owners to prepare for good business management from the start of the year. Instead of responding with aggressive discounts to increase room occupancy, business actors need to ensure a healthy foundation of occupancy and cash flow from before the Ramadan period,” concluded Diane.

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About Cove

Cove is a residential provider living together modern community-based in Asia Pacific. Designed for a flexible lifestyle, the Cove portfolio includes ready-to-move-in properties with complete facilities and strategic locations that can be rented on a monthly or daily basis. As a major co-living player in Indonesia, Cove is now present in more than 200 locations and is the choice for more than 30,000 residents and tourists every month.

Founded in 2018 in Singapore, Cove began operating in Indonesia in 2020 and now has a property network covering the Jabodetabek, Bandung, Bali and Surabaya areas. Apart from Singapore and Indonesia, Cove has expanded its operations to Japan and South Korea as a form of expansion in Asia Pacific.

Get the latest information from Cove via Cove.id/pressInstagram @cove_idand TikTok @cove_id. The Cove application can be downloaded at App Store And Google Play.