Exploring strategies of small ski areas with different destination governance structures: A comparative case study

Abstract

Small ski areas (SSAs) face several challenges, from changing environmental conditions such as lower snow levels and shorter ski seasons, to demographic changes of skiers, such as an aging population. SSAs find themselves operating in mature markets characterized by increased competition by larger ski areas and multi-resort ski conglomerates. Due to their smaller size they have strategic disadvantages, which makes precise positioning in the market and added value creation for their customers necessary. This study examines strategies of SSAs by exploring the influence of different governance structures. Using a comparative case study approach to gain an in-depth understanding of strategies of SSAs, this paper examines two SSAs with different governance structures, one in the U.S. and one in Europe. Data gathering includes nineteen in-depth interviews with various stakeholders of both SSAs, archival data, and on-site observations. Thematic analysis was used for data analysis. The findings highlight three core differentiating factors: (1) technology and innovation, (2) market positioning, and (3) communication and collaboration with stakeholders. While both SSAs pursue a differentiation strategy and target similar groups of customers, they apply different segmentation and marketing strategies, climate change adaptation measures, and service offerings. The findings contribute to the development and management of SSAs as they explain different strategies regarding innovation, market positioning and collaboration with stakeholders due to contrasting governance structures and highlight stakeholders’ awareness to climate change and sustainability.