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Careful study and management can cut low-occupancy costs.

Several assumptions that are often made about low occupancy and the excess costs that such a situation involves are qualified and clarified by this author. The complexity of low-occupancy situations is made clear, and the many factors involved in such situations are explained. Before administrators take action to alleviate a low-occupancy situation, a thorough analysis should be done. Several alternative responses to low occupancy are suggested here.