How does seasonality affect hotel pricing?

Seasonality significantly impacts hotel pricing, and hotels often adjust room rates to reflect changes in demand associated with different seasons and events. During peak seasons, when there is a higher volume of travelers—such as summer vacations, holidays, or major local events—hotels typically increase their rates to maximize revenue. This practice is based on the basic economic principle of supply and demand; when demand is high, prices tend to rise.

Conversely, during off-peak periods when fewer guests are traveling, hotels may lower their rates to attract visitors and fill rooms. This strategic pricing allows hotels to remain competitive and ensures that they can optimize occupancy levels throughout the year.

The other choices indicate a misunderstanding of how hotels operate. Maintaining constant prices throughout the year ignores the fluctuations in demand that occur due to seasons and events. Similarly, claiming that seasonality has no impact on pricing or that prices are only adjusted during holiday weekends fails to recognize the various times when adjustments are necessary based on the travel patterns of consumers.