Seasonality refers to predictable and recurring fluctuations or patterns that occur in a specific period annually due to various factors. These patterns can be seen in industries like retail, agriculture, tourism, and many others.
For instance, retail businesses often experience increased sales during the holiday season, while agricultural outputs can vary according to planting and harvesting seasons. Similarly, tourism can peak during specific holiday periods or favorable weather conditions.
Seasonality doesn’t only apply to industries but also to economic data like employment rates, stock market trends, and more. Understanding these patterns allows businesses to forecast trends, manage inventory, adjust pricing strategies, and make informed strategic decisions.