question archive Mini-Case Downhill Pricing The popular Whistler Blackcomb ski resort (Whistler) near Vancouver, British Columbia, makes extensive use of peak-load pricing

Mini-Case Downhill Pricing The popular Whistler Blackcomb ski resort (Whistler) near Vancouver, British Columbia, makes extensive use of peak-load pricing

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Mini-Case Downhill Pricing The popular Whistler Blackcomb ski resort (Whistler) near Vancouver, British Columbia, makes extensive use of peak-load pricing. Early in the season (late November), demand is relatively low. Demand is higher in December and very high in the holiday period at the end of December, when lifts run at capacity most of the time. January and February are busy months, and demand falls off in March and April. Skiers can buy online tickets in advance for any day of the season. For 2018-2019, the adult price for a one-day ticket (on a Saturday) was C$104 (Canadian dollars) on November 24, C$118 on December 15, C$147 on December 29, C$126 on January 12, and C$104 on April 6. Firms can combine peak-load pricing with other pricing tools such as price discrimination, nonlinear pricing, and bundling. Whistler uses all these tools. For example, Whistler price discriminates by age. For lift tickets on December 12, 2018, children paid C$59, teens paid C$100, and seniors (65+) paid $106. Whistler uses nonlinear price discrimination, offering multiday passes at lower prices per day than single-day passes and offering tickets to large groups at discount prices. Whistler bundles skiing with other products, offering, for example, a daily pass, a lesson, and rental equipment as a package deal for considerably less than the combined stand- alone prices.

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