Dynamic pricing for ski resorts

Markus Redl: Even before the pandemic, we had already replaced the conventional cash desk at the Annaberg lifts with self-service in order to collect customer data - i.e. email addresses - and use it in compliance with the GDPR. After all, ski resorts around Vienna need to retain day guests and encourage as many visits as possible. Ideally on days that are not already in high demand.

During the pandemic, we as ski resorts in Lower Austria and neighboring Styria had to introduce the "principle of the valid ticket". Pre-purchased online tickets or season tickets were even a prerequisite for entering the ski area in 2020/2021. This extraordinary situation has led to the online share skyrocketing to a good 90%.

We have introduced a numerical upper limit, equalized visitor flows via time-limited tickets and clearly presented the availability for guests in a common marketplace - despite different web stores, each with their own strengths and weaknesses. The response from guests was positive and the average revenue increased significantly.

This was the starting point for a digitalization offensive at ecoplus Alpin GmbH led by Isabella Hinterleitner since 2021: We want to become better and more economical through digitalization and implement new product and pricing strategies - dynamic pricing is just one part of this, albeit an important one.

Markus Redl: At the start of this year's winter season, we said that the applicable online price at Hochkar Bergbahnen, Ötscherlifte, Annaberger Liften and Erlebnisalm Mönichkirchen would be the new normal price - and as such around 15% cheaper than at the lift ticket office or ticket machine. On busy days, promoters assisted guests with registration and online booking, otherwise the staff at the ticket office offered their help. As a result, our online share of sales is around 60 %, although the entire group business is not yet conducted via the new web store.

We have also introduced "flexible prices". A dynamic pricing model from Pricenow calculates new prices every day based on historical and actual demand and - shortly before the day to be booked - the weather forecast. Of course, we have set upper and lower price limits for the algorithm. Unfortunately, we had to manually lower the prices (or the daily base rate) on a relatively large number of operating days this year due to the unusual weather. In any case, price sensitivity seems to be rather low, with snow and weather likely to dominate purchasing decisions.

The early booking discount is very helpful for communication, especially as reference can be made at any time to the significantly lower prices granted. As expected, the early booking discount has already been well received for multi-day tickets, but much less so for day or hourly tickets. During the winter season, we have introduced a "carefree package" of three euros for free cancelation of one-day and hourly tickets. In and of itself, flexibility in product and pricing policy is a strategic advantage. But we also need to gain experience first in terms of the right level - our guests should be able to get used to certain standards.

Markus Redl: Our goal is to create a marketplace in which all relevant cable car companies around Vienna participate. That's why we worked together with these ski resorts not only during the pandemic, but also in the development of the tender as part of the digitalization offensive. We are competitors, but at the same time we are already cooperation partners via ticket networks.

Of course, we want to offer our guests various additional services for a fee. We are experimenting with VIP parking spaces. In general, parking space management is essential for visitor management. Car parking spaces are often the scarcest resource. Nevertheless, we don't want to expand parking spaces, but rather make better use of existing spaces through digitalization and promote other mobility solutions.

Isabella Hinterleitner and I spoke in Session 1 "The future and outlook of tourism" at the INTERALPIN INSPIRATION DAYS on 20.04.2023 from 9.30 am to 11.00 am (in the Forum at Messe Innsbruck). Find out more at Inspiration Days 2023 - Interalpin