Demand, business profitability and competitiveness in the cableway system: A multidimensional framework

Abstract

The paper provides a theoretical framework on demand for cableway system, business profitability and competitiveness between mountain areas, including novel elements such as on-line customer satisfaction. Through an in-depth literature review, three important theoretical constructs and core determinants have been identified and further validated by a Structural Equation Model (SEM) using continuous indicators either as observable variables or as latent variables. The results show that the cableway supply in the Italian Aosta Valley Region, as a case study representing the typical alpine biodiverse region, is based on a shade public intervention. The success of the cableway system depends mainly on a loyal segment of demand, on middle/high income and on multi-elastic prices policy. Furthermore, the results provide evidence of possible cooperative competition (or win-win co-opetition) amongst agents.