Seasonality at its core refers not so much to the changes of seasons themselves as it does to the weather, local events, and behavioral changes that occur as a result of the seasonal shifts.
NB: This is an article from Chekin
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Winter doesn’t arrive and instantly drop footfall for every hotel – after all, for a ski resort, winter might be the peak season!
Understanding your target market, your location, and the impact seasonal changes have on you is key to mitigating the impact. This is particularly important if you have different types of hotel in different areas – a boutique city-central hotel will face different challenges to a family friendly apartment next a beach, and you need to pick the right tactics for both.
How Seasonality Trends Present Themselves
Seasonality can impact the hotel industry in a variety of ways, though the fundamental and most crucial is the impact on financial performance and the bottom line. Some of the key dangers to consider include:
- Changes to footfall. The volume of incoming business will fluctuate alongside the seasonal changes. This can occur both in a reduction of footfall during poor weather as well as an oversaturation of guests, potentially leading to insufficient resources.
- Changes to booking habits. Holiday goers may opt for shorter weekend stays, getaways during off-peak times, or book with fewer individuals in their party.
- Incoming revenue. The biggest and most damaging outcome of seasonal changes is the incoming revenue itself. Without reliable income, a business simply cannot operate.
Most Impacted Destination Types
While seasonality will affect all hoteliers throughout an operations year, some will be hit incredibly hard. Businesses that are designed around specific trade will need to consider this trend acutely and make the necessary adjustments to protect their income and boost hotel occupancy rates when required.
The most impacted are typically businesses such as ski resorts, beach resorts, and cities with special events – for instance, Christmas markets, music and cultural festivals, and sports events. Each of these can drive huge volumes of business to nearby locales, but also leave you with a lot of empty rooms in the off season.
High and Low Seasonality Explained
Seasonal fluctuations don’t just refer to the loss of traffic during quiet periods, they can just as easily mean oversaturation during busy periods. It’s important to consider and accommodate both possibilities when planning operations – losing business due to being overwhelmed and providing poor service is just as damaging as having less than anticipated footfall.
How To Effectively Manage Seasonal Fluctuations in Hotel Occupancy
With the challenges defined, it’s time to start putting plans into action. Let’s take a look at some key methods you can use to manage seasonal fluctuations.
