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Supply
Losses due to low
occupancy
J F M A M J J A S O N D
J F M A M J J A S O N D
(a)
(b)
Overcrowding and
loss of potential
business
Overcrowding
Supply
Supply
Low occupancies
Low occupancies
Figure 12.2
J F M A M J J A S O N D
J F M A M J J A S O N D
Fluctuating demand
levels and supply.
(c)
(d)
occupancy will result during low demand periods, and overcrowding will result in peak periods; neither is
desirable. Tomaximize customer satisfaction and to utilize the facilities year-round, some actionmust be
taken. Two strategies for dealing with this situation are as follows:
. This involves supplementing peak-season attractions of a destination with other
attractions that would create demand for travel to that destination during off-season periods. In
effect, the peak season for the destination is extended. Examples of such efforts abound. InMichigan,
for example, the current demand for off-season travel (during the fall, winter, and spring) has been
successfully increased and sustained atmuch higher levels than in the past.WhileMichiganwas once
viewed primarily as a summer destination, the development and promotion of winter sports in resort
areas, foliage tours, and superb salmon
fishing in the fall and spring have created new markets for
these off-season periods. Festivals, special celebrations, conventions, and sports activities sponsored
and promoted during off-seasons are other examples of multiple-use strategies.
2. Price differential
. This technique, in contrast with the multiple-use strategy, creates newmarkets
for the off-season periods by employing price differentials as a strong tool to shift demand away
from the peak season in favor of the off-season. Florida and destinations in the Caribbean have used
this strategy rather effectively. The prices in these destinations during the off-seasons are consi-
derably less than during the peak seasons. In addition, the development of promotional fares by
airlines and other carriers, along with the expansion of the number, timing, and variety of price-
1. Multiple use
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