DEFINITION of 'Seasonal Industry'

A subset of companies that earn the majority of their income during a small part of the year because of factors such as weather, holidays and/or customs. The businesses in a seasonal industry will make little or no money outside of the season that their business revolves around. These businesses must either make enough money during their seasons to last the business owners the entire year, or the business owners must have other sources of income to sustain them during the off season.

BREAKING DOWN 'Seasonal Industry'

An example of a seasonal industry tied to weather is skiing. Most ski resorts only have the quantity and quality of snow necessary for skiing at certain times of the year. Another example of a seasonal industry tied to a holiday is Christmas tree sales. There is little to no demand for these trees outside of the time between Thanksgiving and Christmas.

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