Seasonal Character of Tourism

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Seasonal Character of Tourism

  1. 1. In this Topic:  Introduction - Handout : Climate Change Predictions  Tourism Season Categories  Causes of Seasonality  Impacts of Seasonality -Handout on Climate Changes Effect on International Tourist Flows  Management Strategies 2
  2. 2. Introduction  Degree 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 3
  3. 3.  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 4
  4. 4. 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 5
  5. 5. Causes of Seasonality  Natural (variations in natural phenomena)  Institutional(holidays and availability of leisure time, travel habits and motivation , hosting and timing of leisure or business events) 6
  6. 6. Impacts of Seasonality  SUPPLY SIDE: (Tourism Products) 1. Cost  Increased 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 7
  7. 7. Impacts of Seasonality – contd. 2. Facilities  The 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 8
  8. 8. 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 9
  9. 9. 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 10
  10. 10. 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 11
  11. 11. 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 12
  12. 12. Management Strategies 1. DIFFERENTIAL PRICING 2. DIVERSIFIED PRODUCT(CHANGING THE PRODUCT MIX) 3. MARKET DIVERSIFICATION 4. FACILITATION BY THE STATE 13
  13. 13. 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 to manage fluctuating operational costs (employees and other resources) based on cyclical trends Inability to control fluctuating seasonal costs. Closure of business in off-peak season Reduction of operational costs. 14
  14. 14. Management Strategies – contd. 2. DIVERSIFIED PRODUCT(CHANGING THE PRODUCT MIX) Strategy Issues Addressed Introduction or development of festivals and 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 (reducing opening times in low season) Reducing costs, increasing yield. Meeting customer needs. Offering complementary services or themed offers (e.g. combining tourist facility with local amenities – motel with Expanding operational season (reducing seasonal closures). 15
  15. 15. Management Strategies – contd. 2. DIVERSIFIED PRODUCT(CHANGING THE PRODUCT MIX) Strategy Issues Addressed 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. 16
  16. 16. Management Strategies – contd. 3. MARKET DIVERSIFICATION Strategy Issues Addressed Marketing campaigns to attract different markets 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 and increasing market penetration 17
  17. 17. Management Strategies – contd. 4. FACILITATION BY THE STATE(STATE MEANS GOVT.) Strategy Issues Addressed Staggering of holidays over a longer period Flattening of seasonal peaks and troughs Initiatives to increase the labour market and 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 by government to develop product or local services Improving the business or destination to increase tourism. Provision of tax concession (e.g. on the price of fuel) Encouraging travel to remote areas. 18
  18. 18. Management Strategies – contd. 4. FACILITATION BY THE STATE Strategy Issues Addressed 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 regional infrastructure Greater access to rural or remote areas during both high and low seasons. Development of local business networks and partnerships Provision of greater marketing resources and support for infrastructure development 19
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