Seasonal Economics

The Seasonality Challenge

Tourism's seasonal nature creates unique economic pressures:

Peak Season Dynamics

• July-August: 35% of annual revenue
• Capacity constraints: 95% occupancy in hotspots
• Price inflation: 50-100% increases
• Labor shortages: Despite high unemployment

Off-Season Struggles

• November-March: Many closures
• Cash flow crises: Common for small businesses
• Employment instability: 500,000 jobs seasonal
• Infrastructure underutilization: Costly maintenance

Economic Strategies

Businesses adopt various approaches:

Revenue Management

• Dynamic pricing: Increasingly sophisticated
• Yield optimization: Technology-driven
• Package creation: Adding value
• Market diversification: Targeting different seasons

Cost Management

• Flexible staffing: Controversial but common
• Closure periods: Reducing fixed costs
• Shared services: Cooperatives emerging
• Energy efficiency: Major focus