Optimal weather discounts for alpine ski passes

Various weather conditions can have a strong influence on the alpine skiing experience. This paper is the first to formally examine the relationship between levels of discount for various unpleasant weather scenarios and quantity demanded of alpine skiing day-passes. We use data from a contingent valuation survey among existing skiers at three ski resorts in the Inland region of Norway to estimate price-response functions for six specific weather-related scenarios. These price-response functions were then used to calculate optimal discount levels for each scenario. Our results show that (1) ski resorts can increase revenue substantially by offering weather discounts, and (2) there are big differences in optimal discounts for the different weather conditions.Management implications-Unpleasant weather conditions reduce the value of the skiing experience and also the numbers of visitors on these days.-The implementation of a more dynamic pricing approach could be directly based on a weather forecast.-The revenue and the number of visitors could be substantially increased by offering lower prices when the quality of alpine skiing is reduced due to unpleasant weather-related factors.-Customers have the lowest willingness-to-pay for alpine skiing in a blizzard, when rain is falling, and in a situation when less than 50% of ski slopes are open.