#7 How Cable Cars & Co. Successfully Implement Dynamic Pricing

Dynamic pricing has also made its way to the ski slopes - initially in renowned ski resorts in the USA. A few years ago, the first ski resorts in Europe also introduced the new pricing model - successfully. The pioneers were Switzerland and France, and now numerous cable cars throughout the Alps are taking advantage of a flexible pricing model.

In addition to higher average revenues, cable cars using dynamic pricing primarily benefit from better demand management.

Robert Steiger, a tourism expert at the University of Innsbruck, sums it up in an interview with the STANDARD: “It is not efficient if a ski resort is overcrowded on busy days and many lifts run empty on slow days. These extreme fluctuations can be mitigated through price control.”[1]

We took a closer look at a few ski resorts to see how dynamic pricing works in practice for cable cars.
 

The earlier, the cheaper: These ski resorts appeal to early birds

Those who buy their ski pass on-site at the Arosa-Lenzerheide ski resort pay the same price all season. However, those who book online can save significantly with First Minute Deals and benefit from various discounts depending on the day of the week or season. The more tickets sold for a day, the lower the discount. The number of discounted ski passes is limited.

The same model is used in Austria, for example, in the Sölden/Gurgl ski resorts, at the Pitztal Glacier cable cars, at the Brandnertal cable cars, or at the Gastein cable cars.
 

Completely dynamic: The pricing strategy in Zermatt

At the Zermatt cable cars, there have been no fixed prices since the winter of 2018/19. In this ski resort, ski pass prices are entirely dynamic and vary depending on the season, booking date, weather conditions, and day of the week. In the online ticket shop, guests can view the price development for the coming weeks and choose the cheapest ski days.
 

Pizol and Belalp: Here, the weather determines the price

The Pizol and Belalp ski resorts use a weather-dependent variant of dynamic pricing. In poor weather conditions such as storms or snowfall, winter sports enthusiasts can save up to 50 percent. The condition is that the tickets are purchased online at least seven days in advance.
 

Dynamic pricing: A promising strategy for your ski school

The various examples show how diverse and effective dynamic pricing is already being used in the tourism industry.

Our goal is for your ski school to benefit from the many advantages of dynamic pricing starting next winter season. That's why we've specifically developed WS SPORTS to implement dynamic pricing in your online shop. The setup is free for you!

The dynamic pricing model has proven itself in various industries and is accepted by customers. A central requirement is that they are informed about the new pricing model transparently and understandably. Our newsletter editorial plan is an ideal communication tool to inform your guests about dynamic pricing and motivate them to book their ski course online early.

[1]

Sources: Strobl, Günther (2021): Hochgurgl pioneers flexible prices in skiing. Here’s the full article: www.derstandard.at/story/2000130420830/hochgurgl-prescht-beim-skifahren-mit-flexiblen-preisen-vor