What is the meaning / definition of Seasonal Hotel in the hospitality industry?
A Seasonal Hotel is a hotel which operates only in a specific season. This is often due to its location being greatly influenced greatly by weather changes, which affect the surrounding environment in such a way that the guests main reason for staying is only available during a limited time of the year.
Examples include hotels near ski resorts, beaches, theme parks, some tourist areas, sporting venues, and the like. Seasonal Hotels depend greatly on seasonal/ temporary work in order to run.
Due to the seasonality, the hotel is forced to generate enough revenue during the season to make up for the off-time when occupancies are low.
Therefore revenue and expenditures vary greatly depending on the time of year the hotel is operating. Seasonal hotels are highly dependant on exterior factors and this can be extremely challenging. During “bad seasons” hotels may incur huge losses. Adding to this, the occupancy can often not be as easily influenced by tangible upgrades as within other popular tourist destinations or cities. With climate change taking its toll, seasons are becoming unpredictable – causing skiing seasons to start later and end earlier for example.
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