Modernisation of business practices In the Alps' most popular resorts, price elasticity is becoming more generalised, but remains rational or even arithmetic. It leads to significant variations between high demand weeks (Christmas, New Year, school holidays) and the low season, although this effect may be somewhat reduced due to an increas- ingly international clientele.

This phenomenon is a consequence of the profession- alisation of the market. Pricing policies are increas- ingly based on yield management principles, taking into account the real time evolution of demand and available capacity.

As a result, strategies to optimise occupancy rates and revenues amplify price variation throughout the season. Yield must, however, be appropriate for luxury real estate, and hold up despite elasticity. Advantages and privileges offered to clients therefore take prece- dence over price variations.

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A R

Y

Price variation over the season (2019 - 2020)

Village Resort High Altitude Resort

FRENCH Jan. Feb. March April May June July August Sept. Oct. Nov. Dec.

ENGLISH Jan. Feb. March April May June July August Sept. Oct. Nov. Dec.

RUSSIAN Jan. Feb. March April May June July August Sept. Oct. Nov. Dec.

SWISS Jan. Feb. March April May June July August Sept. Oct. Nov. Dec.

BELGIAN Jan. Feb. March April May June July August Sept. Oct. Nov. Dec.

1st reservation Reservation peak Last reservation

Booking trends by nationality

100

80

60

40

20

100

80

60

40

20

Lo w

H ig

h

Ve ry

h ig

h

M id

Lo w

M id

Ve ry

h ig

h

H ig

h

M id

Lo w

December January February March April Lo

w

H ig

h Ve

ry h

ig h

H ig

h

Lo w

H ig

h Ve

ry h

ig h

H ig

h H

ig h

M id

Lo w

M id

Lo w

December January February March April

Price variation Price sensitivity

Cancellation conditions favourable to clients

180

160

140

120

100

Jan. Feb. March April May June July Aug. Sept. Oct.

20 21