Mitigating tourism seasonality: A Quantitative Approach

Abstract Seasonality is one of the most problematic but least understood aspects of tourism. Many destinations are suffering from this phenomenon every year, yet limited efforts have been made to overcome the troublesome issue. This research proposed an approach to obtaining quantitative solutions which can ultimately assist marketers in mitigating seasonal effects. The study applied financial portfolio theory, widely used in securities allocation decisions. While determining the segment mix solutions to seasonality and describing the Seasonal Demand Efficient Frontier, this paper suggests that marketers should select a mix of tourism segments that fall along the Frontier given a demand–risk target.

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