Optimal prices for alpine ski passes

The purpose of this paper is to examine the relationship between price and demand and to determine the effect of variable pricing on ski resort revenues. We use data from a survey of existing skiers at three ski resorts in the inland region of Norway to estimate price-response functions, based on a number of characteristics, including day-of-week and distance to the resort. The various price-response functions are subsequently used to calculate optimal prices for each subset of skiers according to their differing characteristics. The results show that ski resorts have the potential to increase their total revenues substantially by adopting a more dynamic approach to pricing. Thus, our results provide academic support for the findings of ski resorts that have implemented such pricing strategies.