Does artificial snow production pay under future climate conditions? – A case study for a vulnerable ski area in Austria

The prospects of increasing temperatures, a growing frequency of snow scarce winter seasons and rising energy prices raise questions about the future profitability of snowmaking. Therefore, we carry out a cost–revenue analysis of snowmaking based on projected daily snowmaking hours and visitor numbers until 2050 for a case study site in Austria. The results show that ski area operators are at risk of facing a substantial increase in total energy costs due to expected rising electricity costs, although the total amount of snowmaking hours is projected to slightly decrease because of shrinking feasible time for snowmaking (considering current snowmaking infrastructure). In the long run ski visitor numbers are projected to decline due to decreasing overall snow depths. Overall, the profitability analysis of skiing operations reveals that price increases in ski lift tickets, slightly higher than observed in the recent past, will be inevitable in order to keep skiing operations profitable in future.     

Using ski industry response to climatic variability to assess climate change risk: An analogue study in Eastern Canada

To accurately characterize the ski industry's risk to future climate change and varied quality of snow conditions, it is important to assess how the industry has managed and adapted to contemporary anomalously warm ski seasons. This is the first temporal climate change analogue study to use higher resolution daily performance data at the individual ski area scale, including reported snow quality, ski lift operations, slope openings, and water usage for snowmaking. The record warm winter of 2011–2012 in the Ontario ski tourism market (Eastern Canada) is representative of projected future average winter conditions under a mid-century, high greenhouse gas emissions scenario (RCP 8.5), which was compared to the 2010–2011 season which was climatically normal (for the 1981–2010 period). Supply-side impacts across the 17 ski areas during the analogue winter included a total average decrease in the ski season length (−17% days), operating ski lifts (−3%), skiable terrain (−9%), reduced snow quality (e.g., -46% days with packed powder), snowmaking days (−18%), and an increase in water usage for snowmaking (e.g., +300% in December). Demand-side impacts include a 10% decrease in overall skier visits, with a resort size-correlation (small −20%, intermediate −14%, large −8%). With reduced operational ski terrain and more frequent marginal snow conditions, visitor experience is adversely affected more frequently. Collectively, these findings identify differential impacts in the ski tourism market and can assist ski area managers, communities, investors and governments with developing climate change adaptation plans.     

Future climate change risk in the US Midwestern ski industry

Climate change is an evolving business reality in the ski industry, with recent trends toward shorter ski seasons and emerging climate risk disclosure requirements. Climate change impacts under low- to high-emission futures are examined at 99 ski areas in the American Midwest market with snowmaking. Mid-century season losses range from −25% in a low-emission scenario (SSP245), to −29% under moderate-emissions (SSP370), and − 38% with high-emissions (SSP585). Depending on demand response, utilization intensity could increase between 23 and 40% from the current 4.8 skiers/per acre-day with implications for crowding and visitor experience at ski areas still in operation. Highlighting the importance of low-emission futures, by late-century, transformational impacts in high-emission scenarios would largely eliminate this regional market. The results are compared with previous studies that neglected snowmaking as a climate risk management strategy and thereby substantially overestimated the impact of mid-century and low-emission scenarios.     

Ski tourism in a warmer world: Increased adaptation and regional economic impacts in Austria

Climate change risk has gained considerable attention within the ski industry and its investors. Several past studies have overlooked the adaptive capacity of snowmaking and within-season demand variation and therefore overestimated climate change impacts. This study of the Austrian ski market (208 ski areas) including snowmaking found impacts are substantial and spatially highly differentiated, but nonetheless manageable (season length losses of 10–16%) for the majority of ski areas until the 2050s under a high emissions pathway (RCP 8.5) or even the 2080s in a low emission pathway (RCP 4.5). The economic impacts of reduced operations are largely concentrated in regions less dependent on tourism. Preserving this sector in high-risk areas can be considered maladaptive, but may be important to maintain demand. A sustainable end-of-century future for a high proportion of Austria's ski areas is dependent on achieving the low-emission future set out in the Paris Climate Agreement.     

Determinants of weather derivatives usage in the Austrian winter tourism industry

This study investigates the motivations, concerns and obstacles regarding the use of weather derivatives in the winter tourism industry. The findings from the interviews with 61 ski lift operators in Austria indicate that while the majority of operators are aware of weather risks and report substantial weather exposure, using weather derivatives as a means of offsetting potential loss is rarely considered. This is primarily due to a lack of awareness and knowledge, but on becoming aware of the availability of such instruments ski lift operators express interest in their possible use. The task is thus to increase awareness, knowledge and support for the ski lift operators with reference to the use of weather derivatives.     

Perceptions of climate change impacts,adaptation and limits to adaption in the Australian Alps: the ski-tourism industry and key stakeholders

This paper explores perceptions of ski-tourism representatives and other regional stakeholders about climate change impacts, limits to tourism development and adaptation strategies in the Australian Alps. This area faces rising temperatures, declining rain and snow falls, and shorter skiing seasons. Open-ended interviews examined the perceptions, plans and attitudes of the ski industry and those of conservation managers, local government officials and Australian researchers into tourism and/or climate change effects in the Australian Alps. All interviewees accepted climate change was a reality; several, however, questioned the worst-case scenarios. The major tourism-related adaptation strategies were snowmaking and diversifying to year-round tourism; the success of these strategies will vary according to individual resorts’ snowmaking capacity and potential summer tourism revenue. Currently non-snow-based tourism revenue is worth only approximately 30% of winter revenue. Social resistance to increased water and electricity use for snowmaking emerged as an important issue. Competition for water, including the needs of ecosystems, agriculture and fire protection in this summer-fire-prone region, and fire management issues, is a key concern. Current conflicts between the ski industry and other stakeholders over climate change adaptation call for a collaborative adaptation and change policy within the Australian Alps.     

Changes in demand for tourism with climate change: a case study of visitation patterns to six ski resorts in Australia

Tourism in ski resorts depends on snow cover which is expected to decline with climate change. This paper explores hypotheses about demand side responses to climatic change by analyzing patterns of visitation in recent years with differing snow cover. Snow cover and visitation patterns to six resorts which differ in altitude and size in Victoria, Australia, were compared between a slightly warm and much drier year (2006, +0.6°C and ?50% precipitation to longer-term averages) to a more typical year (2007) and to nine earlier years. Snowmaking partly offset declines in natural snow cover in 2006, although there were still fewer days with snow on the ground. The number of visitor days was much lower in 2006 than the previous nine years for the three lowest-altitude resorts (?69%), while it actually increased (+10%) in the highest altitude resort where there were fewer visitors (?17%), but they stayed longer. Snowmaking is already critical for ski resorts in low snow years. With warmer conditions, lower-altitude resorts may not receive enough income due to reduced visitation to offset snowmaking costs, while higher-altitude resorts may have a short-term gain, but become uneconomical in the longer term.     

Weather risk management in ski resorts: Financial hedging and geographical diversification

As weather volatility increases, weather risk has become a critical management issue in weather sensitive industries. This study uses ski resorts as an example to examine two promising weather risk management strategies: geographical diversification and financial hedging. The empirical analysis results suggest that financial hedging might be a more effective strategy for ski conglomerates. Guidelines for ski conglomerates to achieve better weather risk management outcomes are provided based on simulating the interactions between geographical diversification and financial hedging. Although based on ski resorts and snowfall risk, the methodology is also applicable to other weather sensitive hospitality businesses.     

Impacts of Climate Change on Winter Tourism in the Swiss Alps

This paper examines the impacts of three consecutive snow-deficient winters at the end of the 1980s on the winter tourism industry in Switzerland. It is shown that ski areas in lower areas suffered severe consequences. Ski areas at higher altitudes (in particular glacier ski resorts) on the other hand increased their transport figures and therefore profited from the lack of snow in lower areas. The snow-reliability of all Swiss ski fields under current climate conditions and under a 2"C warming are investigated. Under current climate conditions 85% of all Swiss ski areas are snow-reliable. This number would drop to 63% if temperatures were to rise by 2"C. This is likely to threaten the regionally balanced economic growth which winter tourism has provided. Possible strategies for the winter tourism industry to adopt if climate change occurs are presented.     

Risk management of climate impact for tourism operators: An empirical analysis on ski resorts

The aim of this paper is to analyze the performance of hedging strategies based on snow and temperature options developed by ski operators to protect their profitability under adverse changes in climatic conditions. The setup is based on a joint non-parametric model for snow and temperature aimed at providing a modelling support for the assessment of the impact of these weather variables on the number of visitors at the ski resort. The analysis is carried out considering the case of Austrian Alps, and examines: i) the ability of the proposed approach to provide a realistic representation of the true data-generating process; ii) the variability reduction in the Profit and Loss of the ski operator offered by the suggested strategies; and iii) the tradeoff between the budget earmarked for hedging and profitability protection.     

俄罗斯环贝加尔湖滑雪旅游区竞争力评价研究

俄罗斯是冰雪运动大国,滑雪旅游活动在俄罗斯拥有悠久的历史。俄罗斯的环贝加尔湖地域区位优势明显,自然资源丰富多样,地貌类型独特,滑雪旅游已经成为该区域冬季最具吸引力的旅游项目。本文以俄罗斯环贝加尔湖五大滑雪旅游区为研究对象,建立冰雪旅游区综合竞争力评价指标体系及定量评估模型,科学评估环贝加尔湖冰雪旅游区综合竞争力水平。研究发现：（1）索博利纳亚（Соболиная）滑雪旅游区的竞争力优良,比奇亚（Бычья）和伊斯特兰（Истлэнд）滑雪旅游区竞争力中等,达万（Даван）和马迈（Мамай）滑雪旅游区竞争力薄弱,区域自然资源和基础设施建设是影响综合竞争力评价水平的关键要素;（2）根据评估结果提出以索博利纳亚滑雪旅游区为核心,打造国际绿色、低碳冰雪旅游示范区及中蒙俄经济走廊国际冰雪旅游特区等发展对策。研究结论可为环贝加尔湖冰雪旅游产业综合竞争力提升和区域冰雪旅游高质量发展提供决策依据,为中国冰雪旅游发展模式完善和中俄冰雪旅游产业跨境国际合作提供借鉴参考和科技支撑。     

An analysis of snow options for ski resort establishments

This study proposes a pricing method for put options on snow level for tourism establishments operating in Palandoken ski resort in the east of Turkey. In the calculation of put prices historical densities and Edgeworth adjusted densities methods together with Alaton, Djehiche, and Stillberger (2002) method have been applied. The findings show that there may be significant differences in the prices calculated by the three different methods, hence enabling both parties, i.e. buyers and sellers, with bases in the negotiation process. As the study is primarily aimed at providing a framework for pricing put options on snow levels in general, it is expected that it would be of use not only for this particular ski resort but also for various ski resorts in the world.     

Conjoint Analysis of Downhill Skiers Used to Improve Data Collection for Market Segmentation

A review of academic and government sources suggested that six key attributes of ski resort attractiveness were: variety of runs, snow conditions, value for money, lift lines, staff friendliness and access to home. As part of a larger study in Victoria, B.C., Canada, a sample of 100 skiers completed personal interviews in which they were asked to rank order 29 resort profiles in terms of preference. Seventy skiers ranked the profiles for both short trips and long trips, with an additional 18 skiers evaluating short trips (total = 88 skiers), and an additional 12 skiers evaluating short trips (total = 82 skiers). Using conjoint analysis, the relative importance of the six attributes to ski resort choice was computed for both scenarios. Skiers were clustered, using these importance values from conjoint analysis. They were also grouped using demographic data, information on skier ability and motivation. Analysis of variance was used to test for significant differences between the groupings and analyse the validity and usefulness of the segmentation criteria.     

The Role of Physical Environment in Leisure Service Consumption: Evidence From a Ski Resort Setting

Despite the importance of physical environment in hedonic service consumption, little is known about the extent to which physical environment influences ski resort visitors’ cognition, emotion, and behaviors. This study investigated the relationships among physical environmental stimuli (i.e., layout accessibility, aesthetics, cleanliness, and other visitors), perceived quality of physical environment, excitement, and behavioral intentions in ski resort. This study also attempted to test the moderating role of enduring involvement in the formation of behavioral intentions. Results showed that cleanliness and other visitors significantly and positively influenced visitors’ perceived quality of physical environment and excitement. The results suggest that physical environment is of great importance for the ski resort business. Perceived quality was indeed a significant predictor of excitement, which, in turn, positively influenced behavioral intentions. Finally, the study found that the effect of excitement on behavioral intentions was significant across high and low enduring involvement groups.     

The hidden risk in user-generated content: An investigation of ski tourers' revealed risk-taking behavior on an online outdoor sports platform

This paper investigates risk-taking behavior in the context of an online outdoor sports platform. Analyzing a unique behavioral dataset of 6242 ski tours completed over a time period of eight winter seasons, this paper shows that the accuracy of user-generated content on ski tours is limited and that more than one third of ski tours accessible on the respective online platform was relatively dangerous on the particular days according to a common avalanche risk assessment method. The quantitative analysis furthermore reveals that at avalanche danger level “considerable” more than sixty percent of ski tours were relatively dangerous. Overall, this paper provides novel insights into risks that come with user-generated content in the adventure tourism and adventure recreation domain and derives important implications for online platform users, online platform providers, public institutions, and tourism destinations.     

Can the North American ski industry attain climate resiliency? A modified Delphi survey on transformations towards sustainable tourism

As global temperatures increase, does accelerating climate change represent an existential crisis or a manageable challenge for the ski industry? Despite considerable evidence demonstrating the global ski industry is in the early stages of a climate-induced transition, global research on ski industry stakeholder perspectives shows varied levels of climate risk awareness, a focus on future vulnerability, and limited engagement in adaptation. Within North America, research has focussed on the physical climatic impacts to ski operations and possible skier responses, yet there lacks insight into industry perceptions on current and future climate vulnerability. This study fills this important knowledge gap using a Delphi survey to engage 52 leaders from across the continent in a dialogue on strategic climate responsiveness. Results demonstrate North American ski industry leaders’ climate risk perceptions range widely, and opinions diverge over if or how to respond at both an industry and destination scale. Simultaneously, industry experts believe mountain tourists increasingly value nature-based activities, place-bound products, and corporate responsibility. Analysing industry leaders’ responses through Enlightened Stakeholder theory highlights how aligning supply-side environmental management with demand-side tourist experiences may create opportunities for new partnerships, innovations, policies, and strategies needed to achieve climate-resilient and sustainable futures.     

To survive or to thrive? China’s luxury hotel restaurants entering O2O food delivery platforms amid the COVID-19 crisis

COVID-19 presents luxury hotels with an unenviable task of maneuvering to secure survival. One of the contingency measures of China’s five-star hotels is to salvage revenues by entering online-to-offline (O2O) food delivery platforms. However, both opportunities and risks will ensue. Study 1 has content analyzed customer reviews on the largest O2O food delivery platform in China to probe the key factors of concern. The results show that taste, freshness, and brand credibility remain salient, as in dine-in experiences, while packaging and delivery quality emerge as a result of the integration of the O2O platform, and hygiene due to the COVID-19 pandemic. Interestingly, interaction quality between restaurant staff and customers still plays significant roles with the online channel. Study 2 has further deepened the understanding of luxury restaurants’ O2O services through semi-structured interviews with F&B professionals. The results have paved the way for hotel operators to employ tactics on O2O platforms.     

Managing relationships in the Tourism Supply Chain to overcome epidemic outbreaks: The case of COVID-19 and the hospitality industry in Spain

The rapid spatial diffusion of the COVID-19 epidemic outbreak has resulted in the total economic disruption of the Tourism Supply Chain (TSC) causing a significant reduction in revenue and creating liquidity issues for all operators. Firms in TSC are linked to each other in complex patterns, leading one risk to another. The purpose of this article is to understand the role of relationship management between hotel chains and their key TSC agents in order to overcome economic disruptions caused by epidemic outbreaks. Among the main contributions of this article are the identification of governments, tour operators, and competitors as the key relationships to be managed by hospitality firms. In addition, key areas for coordination with these actors are explored. Finally, the objectives of relationship management according to the partner are also addressed.     

Convinced,ambivalent or annoyed: Tyrolean ski tourism stakeholders and their perceptions of climate change

Its focus on snow-dependent activities makes Alpine winter tourism especially sensitive to climate change. Stakeholder risk perceptions are a key factor in adaptation to climate change because they fundamentally drive or constrain stakeholder action. This paper examines climate change perceptions of winter tourism stakeholders in Tyrol (Austria). Using a qualitative approach, expert interviews were conducted. Four opinion categories reflecting different attitudes toward climate change issues were identified: convinced planners, annoyed deniers, ambivalent optimists, convinced wait-and-seers. Although the findings generally indicate a growing awareness of climate change, this awareness is mainly limited to perceiving the issue as a global phenomenon. Awareness of regional and branch-specific consequences of climate change that lead to a demand for action could not be identified. Current technical strategies, like snowmaking, are not primarily climate-induced. At present, coping with climate change is not a priority for risk management. The findings point out the importance of gaining and transferring knowledge of regional and branch-specific consequences of climate change in order to induce action at the destination level.     

A scenario-based experiment and a field study: A comparative examination for service failure and recovery

Scenario-based experiments are an important method in service marketing, especially in the field of service failures and service recoveries. Field studies on these topical areas are rare because of the expense and ethical issues in a real setting. However, this raises a question: Can the results obtained from experiments accurately predict real-world field behavior? In order to obtain more accurate information regarding service failures and recoveries, this study compares the results from a scenario-based experiment with those from a field study. The findings provided mixed support for the concordance between the scenario-based experimental results and those obtained in a field setting. Negative emotions, such as anger and discontent toward service failures, were consistent in both cases. However, positive emotions (i.e., contentment with recovery efforts and overall satisfaction) and switching behavioral intentions significantly differed depending on the data source (i.e., scenario or field). Specifically, the scenario experiments tended to overstate positive feelings and understate negative behavioral intentions resulting from service failures. An analysis of these differences suggests practical implications to enhance the design of future scenario-based experiments.