Impact Of Holiday Business Seasonality On European Hrm Tourism Essay Example

the research process was to generate a research idea that would be intriguing to study. Various techniques can be employed to discover and select a topic, and for this thesis, the methodology used was known as rational thinking (Saunders et al., 2003). This involved considering the author's experiences and taking into account past and ongoing projects. However, Altinay and Paraskevas (2008) suggest that using multiple techniques can be beneficial for the project. Therefore, relevance trees, a creative technique, were utilized to ensure the author's involvement and motivation remained consistent throughout the research process (Saunders et al., 2003). Once a research idea was generated, objectives were established to achieve the author's goals (Zikmund et al., 2010), which were revised several times during the research process. To accomplish the aims and objectives of this study, the author opted to solely use secondary research data.

The text focuses on the concept of secondary information, specifically in relation to literature reviews. The author explains that conducting a literature review is the initial step in acquiring the necessary knowledge to establish thesis objectives. By reviewing existing literature, writers become more aware of the existing knowledge about their research topic and identify gaps in the literature. Academic literature and journal articles have provided information regarding HRM practices and tourism seasonality. To analyze the impact of seasonality on HRM practices for front office employees in resorts, it is crucial to comprehend the phenomenon of seasonality. This chapter will critically evaluate and review existing literature by defining seasonality, discussing its causes, and assessing its impact. Seasonality, a fundamental element of the tourism industry, has significant implications for businesses across various dimensions such as social,

financial, and environmental concerns.

Seasonality in the academic literature has multiple definitions, which depend on the context. Typically, it refers to a peak in demand occurring at different times of the year, with a spatial aspect that is measured by visitor numbers, employment rates, and hotel occupancy rates. Seasonality is also concerned with annual effects caused by climate changes or national holidays. It is widely acknowledged as one of the most common but least understood characteristics of tourism, causing significant challenges for the industry. The measurement of seasonality can be done through visitor numbers and employment levels, leading to fluctuations in demand and putting pressure on hotels located in peripheral resorts. It should be noted that this paper defines seasonality as phenomena with consistent and well-established seasonal patterns. Additionally, seasonality exists not only within the tourism sector but also across various other industries. The causes of seasonality can generally be categorized into three groups: conditions, calendar effects, and timing determinations (Hylleberg, 1992 cited in Koenig and Bischoff, 2005). Similarly, authors have classified the causes of seasonality in tourism differently. Table twenty presents a summary of these key authors and their identified causes.

It is commonly accepted that there are two factors, "natural" and "institutional", that contribute to seasonality (BarOn, 1975). These factors affect the start and end of the season and are closely related (Baum and Lundtorp, 1999; Hartmann, 1986), as shown in figure twenty. Natural seasonality is influenced by cyclical climate changes like rainfall, temperature, and snowfall (Baum and Lundtorp, 1999; Butler and Mao, 1997). Each country has unique weather patterns (BarOn, 1975), leading to higher demand for European coastal resorts on the Mediterranean during summer

and resorts in the Alps during winter (Shaw and Williams, 1998; Andriotios, 2005). These factors impact businesses consistently every year, although variations can occur due to unpredictable weather (BarOn, 1975). On the other hand, institutional seasonality is driven by consumer decisions influenced by cultural, social, and religious factors. It is less predictable than natural seasonality (Butler, 1994 in Baum and Lundtorp, 1999; Hingham and Hinch, 2002). School and public holidays like Christmas and Easter play a crucial role in tourism demand as they provide people with the opportunity to travel during these periods (BarOn, 1975).

Butler (1994) identifies several causes of seasonality in addition to the well-known natural and institutional factors. These include societal pressure, sporting events, and inertia or tradition. Inertia refers to people's tendency to take vacations at certain times of the year, even when it is no longer necessary, such as after children have left school (Butler, 1994). Hingham and Hinch (2002) suggest that societal pressure and sporting events can be classified as "institutional" causes. However, Hinch and Jackson (2000) argue that inertia cannot be considered a cause of seasonal demand. Butler's identified causes of seasonality closely align with the work of Frechtling (1996), who identifies four main causes of seasonal demand in tourism, later expanded to five by Baum and Hagen (1997) and displayed in Table 20. Considering both the spatial component of seasonality (Butler and Mao, 1997) and the findings of key authors, Lundtorp et al. (1999) classify all these causes as either pull or push factors, as shown in Diagram 20.

Source: Based on Baum (1997), Frechtling (1996), Butler (1994), Butler and Mao (1997).The primary focus of this thesis is to

examine the seasonal variations that occur due to natural factors, which are predictable and tend to recur at the same time each year. The climate conditions in the destination country will play a significant role in attracting seasonal changes.

Seasonality in tourism is categorized into three different forms: individual extremum, most commonly observed in European destinations such as the Mediterranean; two-peak, frequently seen in mountain resorts like the Alps where there are distinct summer and winter seasons; and non-peak seasonality primarily in urban areas like London and Paris (Butler and Mao,1997). Despite understanding these patterns and their origins, seasonality is still perceived as a complex characteristic of tourism (Butler,1994), as the factors that influence it are interconnected in both source and destination areas (Butler and Mao,1997). This poses several challenges for businesses situated in peripheral regions, such as resort hotels.

The phenomenon of seasonality in the hospitality industry, characterized by fluctuations in demand, such as extremum, shoulder, and off-peak seasons (Kennedy,1999), is widely recognized as a challenge with important impacts on hospitality concerns (Jolliffe and Farnsworth,2003). While many causes of seasonality are difficult to control for hospitality businesses, there are exceptions (Butler,2001; Witt and Moutinho,1995). The impact of seasonality can vary depending on the location of the hotel (Baum and Hagen,1999). Seasonality is often seen as a major problem in the tourism sector, having disadvantages for businesses, employment, costs, facilities, and environmental aspects (Buler,1994; Hartmann,1986; Witt and Moutinho,1995). From an economic perspective, seasonality can hinder investments due to the short duration of high season and income instability (Commons and Page,2001; Goulding et al., 2004; Jang,2004).

In addition to the risk of resource underutilization and overutilization, it is necessary

to cover annual fixed costs during the high season and generate profits in a limited time. Adler and Adler (2003) and Duval (2004) mention this requirement. Effective cash flow management is essential, as emphasized by Cooper et al. (2005) and Commons and Page (2001). Consequently, businesses are forced to increase prices during peak seasons, as noted by Commons and Page (2001), while reducing rates during shoulder periods to attract customers, as stated by Koenig and Bischoff (2005). Small businesses are particularly affected by this situation, with seasonal closures being considered the most cost-effective solution according to Getz and Nillson (2004). Seasonality also has a significant impact on employment as discussed by Ball (1989) and Krakover (2000).

Seasonality's impact includes generating seasonal employment, underemployment, and unemployment (Jolliffe and Farnsworth, 2003). Due to irregular fluctuations in demand, employers tend to hire workers on a seasonal basis, resulting in significant recruitment and training costs (Cooper et al., 2005). The recruitment costs attributed to seasonality (Mourdoukoutas, 1988; Krakover, 2000) contribute to decreased wage packages (Commons and Page; Goulding et al., 2004). Additionally, seasonality's effects on employment within the tourism industry have been extensively studied. It has been argued that employees face inadequate training, limited career prospects, and lack of commitment (Jang, 2004; Krakover, 2000), leading to issues with providing quality service (Shaw and William, 1997; Baum and Lundtorp, 2001).

Witt and Moutinho (1995) investigated a country impacted by seasonality, environmental protection, and safety. The fluctuations in demand can negatively affect the local environment, causing high levels of air pollution, noise, and an increased possibility of offenses and terrorist acts due to overcrowding (Butler, 2001; Jang, 2004). Additionally, the literature discusses how

high demand during certain times of the year puts pressure on transportation systems, leading to heavy traffic and strain on infrastructure (Commons and Page, 2001; Ashworth and Thomas, 1999). Overall, the literature suggests that seasonality in tourism is seen as a problem that needs to be addressed at various levels of policy, marketing, and operations (Baum and Lundtorp, 2001).

However, some writers have pointed out that there is limited research on the advantages of seasonality for destination countries and that there are certain benefits to this pattern (Butler, 1994). One notable area of focus is the environmental side, as only the off-season allows for a reduction in environmental pressure (Nilsson and Getz, 2004) and resource recovery (Witt and Moutinho, 1995). Furthermore, there are recognized benefits in terms of employment opportunities. The seasonal demand creates a need for casual and part-time work, allowing locals to earn additional income (Krakover, 2000; Commons and Page, 2001).According to Lundtropt et al. (1999), the local community views seasonality in a positive way. This is because during low-demand seasons, occupants have time to rest, which is crucial for small "household concerns" where owners' participation is high (Nilsson and Getz, 2004). Moreover, congestion pressure on the transportation system during the high season is reduced, thanks to which there is time for infrastructure reconstruction if necessary (Commons and Page, 2001).

Seasonal work refers to short-term employment that occurs annually based on demand and typically ends at a specified time. This type of work is often considered unskilled, highly stressful, and poorly compensated, attracting individuals with lower levels of education. In the tourism industry, the seasonal labor market mainly consists of young workers who are frequently

required to work long hours, including evenings and weekends. However, there is an ongoing debate about the definitions and distinctions between contingent, temporary, and non-standard employment. For this paper's purposes, these terms will be used interchangeably.

Despite its instability, seasonal work has the potential for re-engagement (Ainsworth and Purss, 2008). Nevertheless, contingent workers are often perceived as lacking motivation, dependability, and commitment (De Gilder 2003), which creates a negative perception of administration due to seasonality's cyclical nature (Ainsworth and Purss 2008). Moreover, the fluctuating demand for hospitality and tourism services makes the industry unattractive to potential employees (Pizam 1982 cited in Krakover 2000). Academic literature supports that seasonality heavily influences hospitality and tourism employment (Ashworth and Thomas 1999; Flognfeld 2001; Krakover 2000).According to Jolliffe and Farnsworth (2003), seasonality greatly affects employment in the industry, leading to frequent changes and a high number of temporary jobs. Baum (1999) also states that there is a prevalence of unemployment during off-seasons. Krakover's (2000) study on tourist centers in Israel shows that hotel operators face challenges in aligning their hiring and firing procedures with demand fluctuations.

The tourism industry, including resorts, heavily relies on seasonal employment in order to provide customer service (Ainsworth and Purss, 2009). The involvement of human resources in delivering services emphasizes the importance of resort staff and their attitude in improving quality (Baum and Lockstone, 2008). However, due to the instability caused by seasonality, there is increased pressure on operational standards, necessitating adequate employee training (Baum, 1995). This training is often insufficient for seasonal workers (Baum, 1999) and is limited in time (Krakover, 2000). Additionally, the biggest challenge lies in recruiting employees (Adler and Adler, 2003), as

quality employees prefer year-round employment (Getz and Nilsson, 2004). Despite this, Adriotios (2005) argues that seasonality has created a seasonal balance in employment in the tourism and agriculture industries based on research conducted on the island of Crete. It should be noted that the success of HR practices in highly seasonal businesses depends on the company's business strategy. Jolliffe and Farnsworth (2003) suggest that some companies choose to "embrace" seasonality by accepting its patterns, while others choose to "challenge" the seasonal nature of their sector by seeking to extend their season.Getz and Nisson (2003) conducted research on household concerns in Bronholm, Denmark. Their findings indicate that concerns on the island can be categorized into two schemes: get bying and battling. Get bying involves actions like shutting down the concern, while the battling scheme is characterized by staying open all year round.

The tourism industry's labor market has limited qualifications and often faces issues regarding formal education and training (Baum, 2008). In peripheral areas where hotels are greatly affected by seasonality, there are many challenges in terms of hiring staff capable of delivering high-quality service (Baum and Lundtorp, 2000). Baum and Hagen (1999) have extensively studied the impact of seasonality on employment, particularly in small island environments. Shaw and Williams (2002) have summarized several characteristics of the tourism labor market, especially related to the role of labor in service delivery. One commonly employed strategy in the labor market follows Atkinson's theoretical framework, which distinguishes workers as either core or peripheral, with seasonal workers falling into the latter category. Core workers are full-time employees who are functionally flexible, have job security, high wages, and are willing to move

between departments. On the other hand, peripheral workers are secondary laborers who are often recruited for part-time, temporary, or short-term contracts to meet increased demand.

The flexibility of this group is connected to the theoretical models of Atkinson's "flexible house" and Doeringer and Piore's model (1971 in Shaw and Williams, 2002; Krakover, 2000) of internal and external labor markets. There is limited discussion in the literature about the impact of seasonality on human resource management in resort hotels, but some evidence suggests its importance. A few authors, Baum and Conlin (1994) and Conlin and Baum (2003), have examined the challenges faced by tourism businesses in remote areas due to seasonality and the limited local workforce, particularly in small island locations. Similarly, Baum and Hagen (1999) address the effects of seasonality on employment in cold-water tourism regions, mainly focusing on small islands but not exclusively.

In their 2003 survey, Adler and Adler conducted the most comprehensive analysis on the seasonality and employment trends of the flexible work force in resorts. Specifically, they focused on a hotel in Hawaii and examined how contingent workers were hired in resort hotels to address seasonal fluctuations. Peripheral countries, which are located at a considerable distance from urban areas and have limited accessibility to markets, have been defined as having certain characteristics such as natural beauty, including beaches. However, if not properly managed, developed peripheral destinations often face issues such as overcrowding and environmental pressure. Additionally, Botterill et al. (2000) conducted research in the Welsh tourism industry that explored key differences between core and peripheral areas.

Seaside resorts in peripheral countries attract tourists with summer heat, sun, and beaches. However, the weather influences these

coastal resorts and limits their season. For example, in Greece, Mediterranean seaside resorts have over 70% of their tourists between May and October, causing hotelkeepers to close for the rest of the year. Nonetheless, there are a number of businesses that remain open year-round, such as those in Costa del Sol, Spain.

Islands in Greece are often considered as peripheral destinations with limited resources and isolation (Konstantinos, 2000 in Bramwell, 2000; Buhalis, 1999). These destinations face challenges in terms of human resources due to the strong seasonality of tourism. In recent years, there has been increasing recognition of the benefits for businesses when human resource policies align with the overall corporate strategy (Michie and Sheeten, 2005). This approach, known as Strategic Human Resource Management (SHRM), enables companies to achieve their goals by utilizing individuals who can provide a competitive advantage (Wright and McMahan, 1992 cited in Jollife and Farnsworth, 2003). SHRM encompasses all HR strategies within a company and their impact on performance (Boxall, Purcell and Wright, 2007).