Analysis of Seasonality Impact on the Business Performance of Global Chain Hotels

Abstract

Starting with the notion that seasonality is one of the greatest challenges for the most hotels and tourist destinations, and without an exception for the hotels in European Mediterranean destination, this paper aims to gain knowledge of the coherence between business performance of global chain hotels and degree of seasonality, and if business or leisure hotels are more successful from the aspect of seasonality degree. Business performance is approximated by the following indicators: accommodation occupancy, average daily room rate (ADR) and revenue per available room (RevPAR). Data was collected via questionnaire from 196 global chain hotels from four Mediterranean tourist destinations (Croatia, Italy, Spain and Turkey). The data were analyzed using descriptive, inferential and multivariate statistics. The study concludes that there is a difference in business performance of the global chain hotels depending on the degree of seasonality. As the seasonality degree is lower, the hotels' business performance is higher. It is found that targeting the leisure or business hotel type cannot make the influence on the more favorable degree of seasonality. The paper contributes to theoretical and practical understanding of seasonality impact on the business performance of global chain hotels.

Tourism seasonality: the causes and effects

“…Some researchers have also focussed on assessing the economic effects of the seasonality of the tourism industry from the perspective of tourism service providers. Vrkljan et al (2019) have found that tourism seasonality is positively correlated with business performance, which could be improved only by reducing its effects. Some researchers (Grizane, 2016;Corluka, 2019;Chung, 2009;Koenig and Bischoff, 2004;Mart ın Mart ın et al, 2020;Szivas et al, 2003;BarOn, 1975) have assessed the economic effects of seasonality by means of such criteria as the price of tourism service, amount of revenue earned, investment, exploitation efficiency of resources and infrastructure and development of the territory.…”

“…Some researchers have also focussed on assessing the economic effects of the seasonality of the tourism industry from the perspective of tourism service providers. Vrkljan et al. (2019) have found that tourism seasonality is positively correlated with business performance, which could be improved only by reducing its effects.…”

The seasonality structure of demand in the portuguese hotel industry before the COVID-19 pandemic

“…An even more important issue concerns the instability of the number of hotel staff required throughout the year, leading to variations in the demand for local employment in the tourism sector. The seasonal variation in the tourism sector also has an indirect impact on the distribution chain, transportation, and local commerce of products (Bar-On, 1999;Vrkljan et al, 2019). This means that the tourism sector seasonality poses a problem vis-à-vis employment stability, sustainable development, and economic growth (United Nations Sustainable Development Goal 8: sustainable tourism is one of the subtopics).…”

“…Tourism seasonality in Portugal has not been thoroughly studied in terms of space, distribution of clients, quality of service offered, revenue, although some authors have studied the seasonality in Portugal or Mediterranean destinations, such as Duro (2016), Mitra (2020), Vrkljan et al (2019), Neves et al (2008), Gouveia (2014) andVergori (2017). Some of these studies have some limitations as far as the implications of the scope or method used are concerned (Gouveia, 2014;Vergori, 2017).…”