Achieving 52-week revenue generation across seasons
Stimulating Demand through Collaboration
What happens if your destination has very little demand during low and shoulder seasons?
For some destinations, particularly those that are newer to tourism, demand may be so low that multiple tourism businesses within the destination decide not to open. In this case, destinations need to be aware that they can create disappointment by stimulating customers to travel during periods when there is little to see and do.
In an effort to drive demand in these cases, it is best for businesses to collaborate to ensure that the destination as a whole can remain open and available for sale by considering the following tips
1. Collaborating to stay open during low and shoulder season
- For example, if there are 10 restaurants in a destination, the restaurants could work together on a rotation basis with 1-2 places staying open per night to ensure that customers always have an option for dining out.
- If a diverse range of like-minded businesses including visitor attractions and activity providers collaborate in this way, it will ensure that customers have options for low and shoulder season experiences.
2. Create clear communications
- For example, create a well-presented communication that shares the good news story of how the community has collaborated to welcome customers through (for example) the winter season
- Communications should also show customers the schedule of participating businesses and when these are open
3. Consider a break-even business model for low and shoulder seasons
- High season is generally when tourism businesses make profit. However, in an effort to extend the season and drive future year-round demand, many businesses focus on operating a break-even revenue generation model for low and medium seasons.
- As awareness builds that there are compelling things to do in the destination and as demand grows, the business then moves to a profit-generating model.
4. Collaboration is key
- Reach out to people who live in the local area and business partners in the area so that everyone is aware of the initiative to raise the profile of the destination during low and shoulder seasons
Tip- Customers rarely travel to destinations to see or do one thing. Domestic and global customers must clearly hear that