Seasonal Character of Tourism

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In this Topic:Introduction

- Handout : Climate Change PredictionsTourism Season CategoriesCauses of SeasonalityImpacts of Seasonality -Handout on Climate Changes Effect on

International Tourist FlowsManagement Strategies

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IntroductionDegree of comfort (or discomfort) to be experienced at the

traveller's destination – key element in leisure travel demand

Discomfort comes with diseases

Average global temperatures will rise by between 1.4*C and 5.8*C, a rate unprecedented in the past 10,000 years

Sea levels will rise by between 9 and 88 cms by 2100, with a central forecast of 48 cms, implying a rate of increase between two and four times greater than during the 20th century

There will be substantial regional variations around these average changes

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Leisure tourists affected more due to climatic variation vis-à-vis business and VFR tourists

Tourism is a contributor to pollution too!

Handout on Climate change summary

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Tourism Season Categories:Peak Season/High Season – The time of the

year when tourists are most likely to travel

Shoulder Season

Off Season – Tourism activity is less than half of the peak season

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Causes of SeasonalityNatural (variations in natural phenomena)

Institutional(holidays and availability of leisure time, travel habits and motivation , hosting and timing of leisure or business events)

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Impacts of SeasonalitySUPPLY SIDE: (Tourism Products)

1. CostIncreased prices during peak season (placing pressure on

goods and transport in the area and increasing supply costs for the enterprise)

Budget management/cash flow Cost

Instability in income/return on investment leading to high risk for operational management, investor and region

High-season income must cover annual fixed costs

Cost of seasonal recruiting

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Impacts of Seasonality – contd.2. FacilitiesThe under or over-utilization of resources

Perishability of product – not able to stockpile(store for future use) the product or service Cost

Pressures on transport system and other infrastructure

during peak periods

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Impacts of Seasonality – Contd.3. Employment

Sporadic (random)demand for labour inhibits the recruitment process:

- shortages of seasonal workers lead to seeking workers beyond local area

- high recruitment costs reduce remuneration packages

Sporadic (random)demand for labour affects the retention and development of employees and results in:

- loss of skill and experience - lack of training and career opportunities - service quality inconsistency and reduced customer

satisfaction - lack of commitment by workers - unhealthy fluctuations

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Impacts of Seasonality (Positive)– Contd.

Seasonal operation provides operational management with down time or postseason recuperation(recovery); particularly apt for lifestyle and family-based firms

Seasonal work provides needed casual and part-time work (or additional income) to locals and others

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Impacts of Seasonality – Contd.

4. Environmental Protection and Safety

Gives environmental resources a post-season recovery

Crowding in peak season causing environmental pollution and increase risk of terrorism

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Impacts of Seasonality – contd.DEMAND SIDE (Tourists)

High prices during peak season– cost spreading (making tourists in peak season pay for low income in low season)

Crowding (hard to obtain quality and satisfaction) Peak crowds may increase vulnerability to safety and

threats (e.g. terrorism) Reduced availability of accommodation Pressures on transport system and infrastructure- Handout on Climate Changes Effect on International

Tourist Flows

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Management Strategies1. DIFFERENTIAL PRICING

2. DIVERSIFIED PRODUCT(CHANGING THE PRODUCT MIX)

3. MARKET DIVERSIFICATION

4. FACILITATION BY THE STATE

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Management Strategies – contd.1. DIFFERENTIAL PRICING

Strategy Issues Addressed

Seasonal (or promotional) pricing (e.g.discount or free offers )

Increasing visitation in low periods.Increasing length of stay. Increasing yield.High prices to decrease congestion in peak season.

Group booking offers (e.g. retirees)

Increasing visitation in low periods

Financial planning and budgeting tomanage fluctuating operational costs(employees and other resources) based on cyclical trends

Inability to control fluctuating seasonalcosts.

Closure of business in off-peak season

Reduction of operational costs.

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Management Strategies – contd.2. DIVERSIFIED PRODUCT(CHANGING THE

PRODUCT MIX)


Introduction or development of festivalsand events

Increasing visitation in low periods.

Development of the local environment(access to restricted natural attractions)

Increasing visitation in low periods

Facility or structural development (e.g.public transport, public amenities)

Increasing visitation in low periods.

Service level differentiation (reducingopening times in low season)

Reducing costs, increasing yield. Meeting customer needs.

Offering complementary services orthemed offers (e.g. combining touristfacility with local amenities – motel withcoffee shops or retail outlets)

Expanding operational season (reducingseasonal closures).

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Management Strategies – contd.2. DIVERSIFIED PRODUCT(CHANGING THE

PRODUCT MIX)


Offering off-season holiday package

To provide an incentive to stay in off-season.

Diversifying into niche product or service areas (e.g. identifying and matching seasonal motivation with product/service or local attraction).

Attracting a different market

Diversifying to increase local customers

Increasing business in low periods.

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Management Strategies – contd.3. MARKET DIVERSIFICATION


Marketing campaigns to attract differentmarkets in different seasons (a multisegment approach)

Flattening of seasonal peaks and troughs

Align with tour operators or travel agents to sell product/service

Increasing business in low periods andincreasing market penetration

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Management Strategies – contd.4. FACILITATION BY THE STATE(STATE MEANS GOVT.)


Staggering of holidays over a longerperiod

Flattening of seasonal peaks and troughs

Initiatives to increase the labour marketand to encourage labour force flexibility(e.g. relaxing regulations on work visas for seasonal work or training incentives)

Lack of seasonal workers

Provision of business support services(marketing, financial planning)

Cash flow and other financial problems.

Provision of loans or subsidies bygovernment to develop product or localservices

Improving the business or destination toincrease tourism.

Provision of tax concession (e.g. on theprice of fuel)

Encouraging travel to remote areas.

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Management Strategies – contd.4. FACILITATION BY THE STATE


Environmental regeneration initiatives

Damage to local environment during peak periods.

Support off-season community initiatives (e.g. local arts festivals)

Reduced trade for local businesses.

Improved and expanded regionalinfrastructure

Greater access to rural or remote areasduring both high and low seasons.

Development of local business networksand partnerships

Provision of greater marketing resources and support for infrastructure development

Seasonal Character of Tourism

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