How to Master Seasons in Service

Most of us know that seasons play a huge part in driving costs up or down for traveling and to avoid getting the short end of the stick we should always plan ahead, but do you know why this happens? If you are curious like us, keep reading! We will explain tourism seasonality and give you all the ins and outs on how to master the benefits of seasons in service and use them for your business gain. 

Seasonality is defined by the Cambridge Dictionary as “something that changes according to the seasons”  [1]. When we talk about tourism seasonality there are economic, geographical, structural, cultural, and customer behavioral factors that are weighted to define them. The World Tourism Organization (UNWTO) describes it as “a phenomenon that affects destinations in one or even multiple of the following aspects: high prices, overcrowding, infrastructure, services, and job opportunities. And its causes can be natural like climate conditions or institutional, like holidays, therefore it can be predicted” [2]. 

The impact this phenomenon has on service providers can be significant as this affects operations, and revenue, among other internal business strategies. While these effects can have positive or negative impacts, all destinations are subject to seasonality. 

Our service allies truly believe that service providers can make good use of the predictability of the seasonal phenomenon in the service industry and be prepared to maximize profitability and customer satisfaction. To achieve this goal you will need to pay special attention to the following possible effects your business can experience:

Demand Fluctuation: All businesses will experience moments of high, medium, and low demand throughout the year. Get to know your business and make yourself an expert in making predictions and establishing when you will experience each season. The advantage you will have over your competition is having the opportunity to strategize and optimize your business capability beforehand. 

Managing Resources: Workforce planning is very important for your business and service seasonality is a vital variable you will need to factor in to distribute your collaborator's time and resources, your inventory, and anything your business will need to operate and function during the different seasons. 

Customer Experience Satisfaction Decline: This is a negative effect we need to highlight as Service Allies. Customer experience quality is vital regardless of the season you experience. You need to be prepared to provide an excellent customer experience at all times and avoid letting the demand fluctuation affect your prestige and the hard work you put into attracting and keeping customer’s loyalty. Your customers deserve your 100% effort each time despite the season. 

Financial Challenges: Last but not least, be extra careful in protecting your business' financial stability (Save for a rainy day!). During high season your revenue will be at its maximum, meaning you can decide to designate a percentage of these earnings to subside your business operation during low seasons. As you know you may be earning less and could struggle to achieve revenue goals. 

Here are the three defined categories for seasons in tourism with a little description to help you identify them and some tips and tricks all service providers can apply to their business strategy:

High Season or Peak Season

The most popular season. It’s when destinations are going through holidays and/or important events take place, the weather is the best to enjoy the destination, and there is a higher demand for services and experiences (mostly outdoors or social gatherings). It is the busiest season of the year: prices go up, and opportunities to make a profit for businesses are optimal.  As a best practice, you can create a marketing strategy for this season focusing on discount prices and seasonal products, like selling Christmas cookies if you have a bakery or selling pumpkin spice flavor drinks in a coffee shop for a limited time only. Be sure to stand out in what you do best!

Medium Season

This one is the season of balance—the most preferred by people who want to enjoy their time off and avoid crowds. The weather is nice for multiple activities, there is a good number of events happening, and business demand is consistent and manageable by the amount of services and experiences available. It can be experienced in between holidays and it’s more affordable for tourists, making it an ideal season for profit. A great way to take advantage of this season is to create experiences around your products aiming to appeal to various types of customers. Spain is a great example of this business strategy by hosting multiple fairs around the year that attract both tourists trying typical products and locals by creating the perfect ambiance for get-togethers.

Low Season or Low Peak Season

The cheapest season indeed! It’s characterized by fewer services, you can expect only the essentials available and therefore few to no new job opportunities. Locations under this season are widely preferred by locals enjoying quiet quality time, and routine. As we mentioned in our The 10 Service Commandments blog post, a great way to attract new customers is to make your establishment available when other businesses decide to close. You can make a difference by choosing to open your business to locals, while you use this time of lower activity to plan and prepare for other seasons. We advise that you evaluate the performance of your business during this time to assess what worked, and what did not to make adjustments. Always seek progress over perfection!

All of these ideas and seasonality strategies may sound too good to be true and you may want to use the opportunities every season brings; but there is a catch: not all destinations experience the same seasons at the same time. A high season for Rio de Janeiro could be a medium season for Tokyo, or a low season for Madrid can be a high season for Berlin. Every city, depending on its location, governmental rulings, and even type of tourism; is molded into a pattern of seasonality that is completely made for its own. Nevertheless, It surely is within your power to ensure the success of your business regardless of seasonality. 

How do you feel about seasons in service now? Do you think they are good or bad for businesses? Do you have a seasonal preference? We hope these tips help you achieve success and guarantee your business stability over time. Leave us a comment sharing your experience, we would love to hear from you!