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A complementary product of a nearby ski lift company

Author

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  • Hannes Wallimann

    (University of Applied Sciences and Arts Lucerne, Switzerland; University of Fribourg, Switzerland)

Abstract

The availability of attractive complementary products offered by a nearby company positively affects other companies in the value network of a winter sports destination. We aim to illustrate empirically the positive effects of the campaign of a local ski lift company in Switzerland on other companies in the same value network. For the first time in tourism research, the synthetic control method is used to investigate the impact of a new pricing strategy. In this case, the company’s practice of radically discounting the prices of its seasonal lift passes had a positive impact on accommodation businesses in the same winter sports destination. The impact amounts to about 35% additional overnight stays by domestic tourists per winter season that is a seasonal increase of 32,000 overnight stays. However, the ski lift company concluded that the campaign had been unsuccessful. We therefore discuss the difficulties of such a new pricing strategy and emphasize the importance of cooperation between independent companies in the wider destination area.

Suggested Citation

  • Hannes Wallimann, 2022. "A complementary product of a nearby ski lift company," Tourism Economics, , vol. 28(2), pages 418-434, March.
    • Handle: RePEc:sae:toueco:v:28:y:2022:i:2:p:418-434
    DOI: 10.1177/1354816620968329
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    References listed on IDEAS

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    Cited by:

    1. Kevin Blattler & Hannes Wallimann & Widar von Arx, 2024. "Free public transport to the destination: A causal analysis of tourists' travel mode choice," Papers 2401.14945, arXiv.org, revised Feb 2024.
    2. Wallimann, Hannes & Blättler, Kevin & von Arx, Widar, 2023. "Do price reductions attract customers in urban public transport? A synthetic control approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 173(C).

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