Recent national studies document the fact that the lackluster performance in the lodging industry's occupancy rates are directly attributable to the steady growth in the supply of available rooms at a rate that consistently outpaced the demand. Resort area managers who are facing this decade-long reduction in occupancy rates are especially cognizant of the need to revise current market strategies to shield their properties from additional economic fallout that are often triggered by external events. One purpose of the Hilton Head Island Study to determine if a chase demand strategy, where resort capacities are varied with changes in the level of demand, was the proper strategy for the Hilton Head Island destination resort area. Results indicated that visitors utilized timeshare, campgrounds and rental properties more often during the winter season because of their longer average stay. This study also documented the fact that winter season visitors differed significantly from peak season visitors with respect to the level of importance they placed upon many of the hospitality and travel-related amenities in the area. The Hilton Head Island resort should take a chase demand strategy as the basic strategic marketing approach for the winter-season development.
Furr, H. Leslie; Bonn, Mark A.; and Seagle, Edward
"Disaggregating Seasonal Demand of a Coastal Resort,"
Visions in Leisure and Business: Vol. 10
, Article 5.
Available at: https://scholarworks.bgsu.edu/visions/vol10/iss3/5