Ski Networks and their Effects on Pricing in Austrian Skiing Regions

A regression analysis has shown that, due to watered-down competition, prices of single-day ski passes are higher by up to 18 percent in regions covered by ski networks than they would be in an independent region. Networking similarly weakens competition when it comes to multi-day passes. Nevertheless, guests staying for several days may enjoy greater benefits from ski networks than they would without the network, provided that the guests actually utilise all parts of the network. Nevertheless, the net result of such opposite effects (costs and benefits) can be calculated only if more precise information is obtained on the demand and use behaviour of multi-day guests. From the findings it is recommended to have the Austrian Competition Authority carry out a detailed sectoral investigation.