A hedonic price analysis of ski lift tickets in Norway

Abstract

ABSTRACTIn this study, we used the hedonic price method to examine what affected one-day ski lift ticket prices in Norway in the winter season 2014/2015. The analysis was based on geographic information, supply-related characteristics and on climatic data of 83 alpine ski resorts. Additionally, we estimated which ski resorts were under- or overpriced. The results indicate that vertical drop, share of intermediate difficulty ski slopes, number of snow parks, travel distance to the nearest large ski resort in Sweden and price at the nearest ski resort in Norway positively affect prices. Travel distance to the nearest ski resort in Norway and to the nearest large urban area in Denmark or Sweden, a total lift capacity of less than 3000 persons per hour, location in western Norway and a location close to more than two other ski resorts significantly and negatively affect prices. The results suggest that, according to a price–quality relationship, the Hemsedal ski resort provided the highest quality of skiing experience. Overall, ski lift ticket prices were influenced by the pricing decisions of leading ski resorts in Norway. Managers can use the results of this study to make better pricing decisions to increase the profitability of their ski resorts.