What is the definition of Seasonal Hotel in the hotel industry?
A Seasonal Hotel is a hotel which function only in a precise season. This is often due to its position being greatly prejudiced by weather changes, which influence the surrounding environment in such a way that the guests main cause for staying is only existing through a limited time of the year.
Examples comprise 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 expenses differ very much depending on the time of year the hotel is in service. Seasonal hotels are extremely dependent on external factors and this can be enormously challenging. During “bad seasons” hotels may acquire gigantic losses. Adding to this, the tenancy can often not be as easily prejudiced by touchable upgrades as within other well-liked tourist destinations or cities. With weather change taking its toll, seasons are becoming changeable – causing skiing seasons to start later and end previously for example.