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Determinants of weather derivatives usage in the Austrian winter tourism industry

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  • Bank, Matthias
  • Wiesner, Robert

Abstract

This study investigates the motivations, concerns and obstacles regarding the use of weather derivatives in the winter tourism industry. The findings from the interviews with 61 ski lift operators in Austria indicate that while the majority of operators are aware of weather risks and report substantial weather exposure, using weather derivatives as a means of offsetting potential loss is rarely considered. This is primarily due to a lack of awareness and knowledge, but on becoming aware of the availability of such instruments ski lift operators express interest in their possible use. The task is thus to increase awareness, knowledge and support for the ski lift operators with reference to the use of weather derivatives.

Suggested Citation

  • Bank, Matthias & Wiesner, Robert, 2011. "Determinants of weather derivatives usage in the Austrian winter tourism industry," Tourism Management, Elsevier, vol. 32(1), pages 62-68.
    • Handle: RePEc:eee:touman:v:32:y:2011:i:1:p:62-68
    DOI: 10.1016/j.tourman.2009.11.005
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    1. Thanita Buranatrakul & Fredric William Swierczek, 2018. "Climate Change Strategic Actions in the International Banking Industry," Global Business Review, International Management Institute, vol. 19(1), pages 32-47, February.
    2. Lorenzo Zirulia, 2016. "‘Should I stay or should I go?’," Tourism Economics, , vol. 22(4), pages 837-846, August.
    3. Michał Żemła, 2021. "Winter Sports Resorts and Natural Environment—Systematic Literature Review Presenting Interactions between Them," Sustainability, MDPI, vol. 13(2), pages 1-17, January.
    4. Simona Franzoni & Cristian Pelizzari, 2021. "Rainfall option impact on profits of the hospitality industry through scenario correlation and copulas," Annals of Operations Research, Springer, vol. 299(1), pages 939-962, April.
    5. Andrea Martínez Salgueiro & Maria-Antonia Tarrazon-Rodon, 2021. "Weather derivatives to mitigate meteorological risks in tourism management: An empirical application to celebrations of Comunidad Valenciana (Spain)," Tourism Economics, , vol. 27(4), pages 591-613, June.
    6. Falk, Martin, 2013. "A survival analysis of ski lift companies," Tourism Management, Elsevier, vol. 36(C), pages 377-390.
    7. Linnenluecke, Martina K. & Smith, Tom & McKnight, Brent, 2016. "Environmental finance: A research agenda for interdisciplinary finance research," Economic Modelling, Elsevier, vol. 59(C), pages 124-130.
    8. Gülpınar, Nalân & Çanakoḡlu, Ethem, 2017. "Robust portfolio selection problem under temperature uncertainty," European Journal of Operational Research, Elsevier, vol. 256(2), pages 500-523.
    9. Ivana Štulec, 2017. "Effectiveness of Weather Derivatives as a Risk Management Tool in Food Retail: The Case of Croatia," IJFS, MDPI, vol. 5(1), pages 1-15, January.
    10. L. Zirulia, 2015. "“Should I stay or should I go?”: Weather forecasts and the economics of “short breaks”," Working Papers wp1034, Dipartimento Scienze Economiche, Universita' di Bologna.

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