Dynamic pricing as top topic at the TFA Forum 2019
With the motto “Tourism Sovereignty”, impulses for the mountain railway and alpine tourism industry were set at the Alpine Regions Tourism Forum from 1st to 3rd of April 2019 in Innsbruck.
As one of the top topics of the three-day expert forum, the focus was on “Sovereign pricing of alpine ski areas”.
The audience was given an insight into the results of various pricing models, which were presented by two high-ranking industry representatives (Thomas Rechberger, Engadin St. Moritz Mountains AG; Sandra Zenhäusern-Stockinger, Zermatt Bergbahnen AG) and grischconsulta using direct use cases.
On the basis of the results presented, we were able to determine that they are similar to our experiences and findings from the current season. Although cross-regional season pass strategies for individual mountain railways have led to increases in the area of initial entry or traffic revenues, a simultaneous decline in revenues per skier day was observed. It therefore remains to be seen whether the decline in revenue can be compensated in the long term by the desired quantity effect. We are pleased to analyse this form of pricing on the basis of an in-depth, data-based study in order to be able to make sound statements on the success of this pricing strategy.
In addition, Dynamic Pricing was discussed as another form of pricing for mountain railways. The results presented go hand in hand with our conclusion for the season so far: by making ticket prices more dynamic, not only can traffic revenue be increased, but also the revenue per ski day. In addition to gratifying increases in turnover, the positive developments in the online booking area, which experienced strong growth due to dynamic pricing, stood out. This corresponds to the conclusion that we were also able to gain with the launch of our web shop with dynamic ticket prices this season. We increased online bookings from 0% to around 27%. Attractive early booking offers and additional products not only create a win-win situation for the mountain railway and its customers, but also opens up the possibility of generating valuable customer knowledge via the online sales channel.