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The Impact of Weather Forecasts on Ski Demand

Title: The Impact of Weather Forecasts on Ski Demand
Authors: Troxler, Pascal
Source: Troxler, Pascal (April 2023). The Impact of Weather Forecasts on Ski Demand (CRED Research Paper 43). Bern: CRED - Center for Regional Economic Development
Publisher Information: CRED - Center for Regional Economic Development
Publication Year: 2023
Collection: BORIS (Bern Open Repository and Information System, University of Bern)
Subject Terms: 330 Economics
Description: In the wake of stagnating demand across Alpine ski areas, new pricing regimes and recent advances in the availability of precise local weather forecasts, the relation of weather forecasts to ski demand gains new relevance. I use an activity choice framework in which agents evaluate the utility of skiing relative to alternative opportunities. Thereby, agents decide early based on forecasts or spontaneously based on observed weather outcomes. By matching the demand data of three Swiss ski areas to local forecast and weather data, I show that forecast errors affect skiing demand above the variation through weather alone. Furthermore, I find suggestive evidence that reactions to pessimistic forecast errors exceed those to optimistic errors when agents are more risk averse, less enthusiastic towards skiing or the ski area is located further into the Alps.
Document Type: report
File Description: application/pdf
Language: English
Relation: https://boris.unibe.ch/181792/
Availability: https://boris.unibe.ch/181792/1/CRED_RP43.pdf; https://boris.unibe.ch/181792/; https://www.cred.unibe.ch/forschung/publikationen/cred_research_papers/index_ger.html
Rights: info:eu-repo/semantics/openAccess
Accession Number: edsbas.5F9972F8
Database: BASE