Operations subject to high fixed capacity and fixed costs require relatively high occupancy creates or load factors in order to meet both fixed and variable costs; the distinction between profits and losses occurs at occupancy rates around such break-even points. Cyclical and seasonal variations in tourism demand exacerbate profit volatility, especially where aggregate fixed capacity is a feature of independent decisions made by many suppliers, such as in the accommodation sector. Strategies in the short run are aimed primarily at covering fixed costs, involving attempts to capture trade from rivals. In the long run, consideration is given to means raising demand in order to increase load factors or occupancy rates, particularly in off-peak periods. The characteristics of high sensitivity of profits to occupancy rates and load factors engenders various responses by suppliers.