A complementary product of a nearby ski lift company. Issue 2 (March 2022)

• Record Type: Journal Article
• Authors: Wallimann, Hannes
• Is Part Of: Tourism economics. Volume 28:Issue 2(2022)
• Page Start: 418
• Page End: 434
• Publication Date: 2022-03
• Subjects: cooperation -- price discount -- synthetic control method -- value network -- winter sports destination; Tourism -- Periodicals; 338.4791
• DOI: 10.1177/1354816620968329
• Languages: English
• ISSNs: 1354-8166

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.