How destinations and tourism businesses can overcome off-season challenges to boost year-round visits and revenue

The global travel and tourism sector generated a staggering $9.9 trillion for the global economy in 2023, accounting for about 9.1% of the total global GDP. However, even with its significant contribution, many destinations and tourism businesses struggle to sustain steady revenue during the off-season tourism period. For example, according to KRG Hospitality, nearly every hotel experiences an off-season where occupancy rates can drop by as much as 30% due to the low number of visitors to the destinations the hotels are located in. This seasonal decline often leads to challenges like reduced cash flow, underutilized resources, and workforce downsizing, putting considerable strain on tourism entities.

In this blog, we'll dive deep into why tourism sees a dip during off-season phases, explore the underlying reasons behind the reduction in visitors’ number, and discuss strategies that destinations and tourism businesses can adopt to stay profitable year-round.

Off-season tourism - Barriers and bottlenecks

Destinations and travel businesses often face revenue dips during off-peak seasons. They are typically marked by a decrease in visitor arrivals, resulting in reduced hotel occupancy rates and lower demand for local services, thus impacting overall tourism income. These off-season tourism challenges often stem from a combination of factors related to both traveler preferences and the operational constraints of destinations and tourism businesses such as:

1 Weather, safety, and health concerns

Unfavorable weather and safety concerns are major deterrents for off-season travel. Due to unpredictable or extreme weather conditions, many tourists avoid traveling during off-peak times. Coastal destinations, for instance, see reduced appeal when cooler temperatures limit beach endeavors, while ski resorts may encounter a drop in visitors with insufficient snowfall in early or late seasons. 

Additionally, adverse weather like hurricanes, monsoons, or natural disasters in tropical or remote regions can pose significant risks, further discouraging travel during certain months. Health concerns also rise during these times, with some areas having a higher prevalence of diseases. Climate change exacerbates these issues, with shifting weather patterns impacting travel safety. For example, Europe recorded over 62,000 heat-related deaths in 2022 according to CNN World, one of the hottest years on record, discouraging visitors from traveling during peak heat months. These combined factors create barriers to consistent tourism demand during the off-season.

2 Schools and families

For families with children, off-season travel often conflicts with school schedules. This limits the ability for families to travel outside school holidays, which typically align with peak seasons. Even those without children may avoid off-season travel due to the lack of vacation days. A study found that 85% of families took their major vacation during the summer before the implementation of year-round schooling, whereas only 40% did so after the transition. This shift indicates that school schedules are a main factor affecting travel planning.

It is important to note that this statistic is specific to the United States, where year-round schooling has become more common in some regions. However, in the European Union, year-round schooling is not prevalent, and traditional school calendars—with longer summer breaks and shorter in-session breaks throughout the year—continue to shape travel patterns. 

3 Limited attractions and activities

Off-season tourism can be unappealing if a destination has limited attractions or activities available. Many popular tourist attractions or resorts close during the off-season to save costs. For instance, theme parks, resorts, and certain national parks may have reduced operating hours or closed facilities. This can discourage travelers who want to avail full range of services and events. In addition, many local businesses (e.g., restaurants, and shops) might operate at reduced hours or close entirely, leading to a less vibrant atmosphere.

4 Lack of awareness or marketing challenges

Destinations may struggle to market off-season travel effectively. Without the buzz of peak seasons, some destinations may fail to highlight the unique advantages of traveling during off-peak durations, such as fewer crowds, better local experiences, discounted rates on services, or special seasonal events. Often, travel marketing focuses on peak-season promotions, leaving off-peak seasons and related events and activities underpublicized.

5 Inconsistent visitor experience

Many tourists do not receive the same level of service, availability, and convenience during off-season trips as peak seasons. Fewer staff, reduced services, and maintenance work in the off-season can lead to diminished visitor engagement. These factors contribute to a general hesitancy to visit during quieter periods, as travelers may feel their journey is not as enjoyable or fulfilling.

6 High travel costs or perceived value

While off-season travel typically offers lower prices, many travelers still perceive it as being costly or not worth the investment. Flights and accommodations might seem more affordable, but added costs such as fewer available options or limited transportation routes can make off-peak trips seem less economical. Travelers might also perceive off-season trips as less exciting, thinking that peak seasons offer better deals for excursions and events.

How destinations and travel businesses can thrive during the off-season?

While off-peak seasons often see fewer travelers, a growing trend toward year-round travel is emerging. A report by Zicasso, which analyzed over 40,000 trip requests, found that 43% of respondents experience consistent travel demand throughout the year, signaling a shift towards off-season tourism. This trend reflects a desire for quieter, less crowded traveling, especially in the post-pandemic era. As more travelers seek tranquil and unique trips, destinations have an opportunity to extend their tourism seasons and reshape traditional peak and off-peak periods.

The following strategies outline how destinations and tourism businesses can adapt and continue to attract visitors during these quieter times.

1 Host local events and festivals, and create themed activities

Organizing cultural, art, or seasonal festivals can considerably raise off-season travel. According to a survey referenced by My Travel Research,  over 50% of respondents agreed that history and culture are strong influences on their choice of holiday destination. 

Winter festivals, harvest celebrations, or music events can draw in visitors looking for unique encounters. For example, The Quebec Winter Carnival is an excellent example, attracting over 1 million visitors annually. This festival celebrates winter with parades, ice sculptures, and various adventures. It notably increases tourism in Quebec City during the winter months when travel typically slows down. The carnival generates millions in revenue for local businesses and promotes Quebec's cultural heritage. Similarly, Tuscany, Italy, hosts olive harvest festivals and truffle hunting tours in the fall.

Furthermore, travelers are expected to increase their spending on activities, with a focus on wellness, nature, and sustainability. The Global Wellness Institute (GWI) reports that the wellness tourism market is expected to reach $1 trillion by 2024 and $1.4 trillion by 2027, indicating a robust growth trajectory. The report highlights a 16.6% annual growth rate of wellness tourism, making it one of the fastest-growing segments within the broader travel industry. Offering themed experiences such as wellness weekends, guided nature tours, and food and artisanal tastings can cater to this demand.

For instance, Mallorca, Spain, organizes cycling and wellness programs in spring or autumn, taking advantage of its milder temperatures. Similarly, Bali, Indonesia is another destination that organizes wellness programs focused on yoga, meditation, and holistic healing retreats in the lush, tranquil settings of Ubud. By promoting these offerings, these destinations draw travelers seeking rejuvenation and a deeper connection with nature, even outside the peak tourist months.

2 Boosting outdoor activities, hands-on, and culinary workshops

Destinations can diversify their off-season offerings by organizing outdoor adventures and hands-on workshops. According to the article "The Rise of Outdoor Adventure Tourism: What It Means for Campgrounds", the adventure tourism industry is expected to grow significantly, with estimates indicating a projected market size of $1.3 trillion by 2026. This growth is driven by increasing consumer interest in outdoor activities, particularly among younger generations such as Millennials and Gen Z, who prioritize experiential travel over traditional vacations. For example, Iceland leverages its winter season by offering Northern Lights tours, glacier hikes, and ice cave explorations, attracting travelers interested in unique natural phenomena. Similarly, New Zealand promotes off-season hiking and eco-tours in regions like Fiordland, where the landscapes are particularly stunning during the cooler months.

Offering culinary and craft workshops is another way to attract travelers. According to Grandview Research, the global culinary tourism market was estimated at $11.5 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 19.9% from 2024 to 2030. In Kyoto, Japan, visitors can participate in traditional tea ceremonies and kimono-making classes, allowing them to engage with the local culture on a deeper level. On the other hand, Norway organizes winter fishing expeditions and reindeer sledding experiences, and even marathons in regions like Tromsø, enticing adventure seekers during the quieter winter months. These tailored activities help destinations maintain steady visitor numbers and provide authentic exposures that are harder to find during peak travel seasons.

3 Enhancing sustainability

According to Booking.com's 2023 Sustainable Travel Report, 76% of travelers express interest in adopting more sustainable travel options in the coming year, reflecting an increasing awareness of environmental concerns. This presents a great opportunity for destinations and tourism businesses to focus on sustainability by offering green accommodations, promoting eco-friendly practices, and encouraging low-impact options like digital audio guides that help reduce paper waste and promote self-guided tours, addressing ecological concerns associated with traditional group tours and mass tourism.

However, it's important to note that 49% of travelers believe sustainable travel options are too expensive, which can limit their ability to choose eco-friendly alternatives as per Booking.com's study. To make sustainability more accessible, tourism entities can offer budget-friendly green travel options and packages, ensuring that eco-conscious choices are not limited to higher-income travelers. Adopting these strategies can attract more travelers and encourage them to visit during the off-peak season, simultaneously strengthening tourism and sustainability efforts.

4 Discounts and promotions off-season

Offering strategic discounts and promotions is an effective approach to attract travelers during the off-peak season, especially younger demographics such as Gen Z. Gen Z travelers, who make an average of three leisure trips per year, have shown a strong passion for travel. However, many in this group face financial limitations. According to the article "30+ Gen Z travel statistics and trends", 24% of Gen Z planned to spend less on trips in 2023 due to economic concerns. This highlights the importance of pricing strategies that cater to budget-conscious travelers.

During the off-season, tourism businesses can implement targeted discounts ranging from 10% to 50% to stimulate demand and maintain steady cash flow. Offering exclusive discounts, packages, or value-added services during the off-season can effectively draw in cost-conscious travelers. For instance, special off-season rates or 'buy one, get one' offers for activities can be attractive incentives.

5 Focus more on domestic travel

To promote off-season tourism effectively, destinations and travel businesses should focus on domestic travel, which represents about 75% of global travel spending. Domestic travel has been particularly important for maintaining tourism revenue during off-peak periods. According to the study of the World Travel and Tourism Council, in 2023, domestic visitor spending saw an 18.1% increase, surpassing pre-pandemic levels. This highlights the potential for destinations to attract local travelers during quieter seasons by offering tailored promotions and trips. While international travel also saw growth, with a 33.1% increase in spending in 2023, it still remains 14.4% below 2019 levels, signaling that domestic tourism will continue to play a key role in sustaining off-peak tourism. By focusing on local travelers, destinations and businesses can strengthen their revenue during traditionally slower months.

6 Target a new demographic market

To tap into new demographics, destinations and travel businesses need to identify broader industry trends and adjust their offerings accordingly.

For example, while cruise lines have traditionally appealed to older audiences, studies show that recent years have seen millennials becoming an increasingly important market. A McKinsey survey found that 66% of younger travelers (Millennials and Gen Z) are more interested in travel now than they were before the pandemic, highlighting a shift in travel preferences. To attract this demographic, cruise lines have adjusted their offerings, including shorter vacation options and new on-deck experiences tailored to younger travelers. Marketing strategies aimed at this group may include refreshing websites or creating new promotional materials that appeal to their preferences and lifestyles. This approach can help destinations reach untapped audiences and capitalize on shifting travel trends.

Alongside these broader changes, focusing on niche domestic segments through events centered around traditional holidays, regional customs, and local festivals opens up another opportunity. Destinations can design experiences for domestic travelers by leveraging cultural pride and familiarity. For instance, promoting Lunar New Year activities in China, Oktoberfest celebrations in parts of Germany, or cherry blossom viewing tours in Japan can significantly boost interest among local audiences. Regions with longstanding traditions, such as Scotland's Hogmanay festivities, likewise attract residents seeking rich cultural experiences. Tailored offerings, like culinary workshops featuring regional flavors or guided history tours around festival sites, enhance engagement and provide unique value. By understanding local culture and preferences, destinations can solidify their position as go-to attractions for domestic travelers, even during off-peak seasons.

7 Strong marketing and social media campaigns

With the right digital campaigns, destinations can engage travelers through social media platforms, email marketing, and targeted ads. Using content like blogs, photos, and videos showcasing off-season highlights can spark interest.

According to the report of McKinsy and Company, approximately 92% of younger travelers were inspired by social media for their last trip. Platforms like Instagram and TikTok play a crucial role in shaping their travel aspirations and choices. In fact, 29% of Gen Z travelers were motivated to visit a destination after seeing it featured on TikTok. This underlines the importance of running strong, visually appealing digital and social media campaigns that promote off-season events and raise awareness, creating excitement around the destination. By doing so, destinations can reach a wider audience and directly engage the travel aspirations of younger generations.

8 Improved accessibility and infrastructure

Expanding transport options such as budget airlines, better local transportation, or more frequent schedules can help increase arrivals during off-peak intervals.

Budget airlines, particularly, can play a vital role in boosting off-season tourism by introducing seasonal routes and increasing flight frequencies during quieter times. The Low-Cost Carrier (LCC) market, which accounted for around 35% of global air travel in 2023, demonstrates its growing influence in making travel more accessible and affordable. By capitalizing on this trend, destinations can attract budget-conscious travelers through lower airfares and targeted promotions during off-peak season. With the LCC market expected to surpass $254 billion by 2027, leveraging budget airlines’ flexibility can help destinations maintain visitor flow year-round, support local businesses, and reduce the impact of seasonal downturns.

On the other hand, working with local restaurants, hotels, and shops to offer discounts or deals during off-peak seasons can help encourage travelers to visit, and/or provide seasonal packages to attract more visitors. This creates a win-win situation where both the destination and local businesses benefit.

Adopt off-season strategies

Off-peak seasons may pose challenges, but they also offer opportunities for destinations and tourism businesses to drive consistent growth. By implementing targeted strategies such as hosting events, diversifying offerings, and enhancing sustainability efforts, tourism entities can maintain a steady flow of visitors year-round. Additionally, focusing on digital innovation, strategic discounts, robust marketing campaigns, and improved accessibility will ensure a profitable off-season tourism period.

Adopt off-season strategies today to strengthen your destination’s year-round appeal. You can start by addressing more individual travelers, who are a lot more flexible and often more interested in the unusual, regardless of the season. Attract this segment by creating self-guided tours. Instead of investing endless budgets into developing your own tour guide app, publish your destination's or attraction's story on SmartGuide, the digital audio guide platform.

Let's talk about how to attract more individual travelers off-season with SmartGuide.
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