1 Introduction

Alpine tourism, especially snow sports tourism, has always been a cornerstone of economic development in many mountain regions, including Switzerland. Cable car companies provide critical infrastructure for the snow sport tourism. They also generate both direct and indirect economic benefits in peripheral areas (Bieger, 1999). Therefore, beyond their operational role, these companies act as economic focal enterprises and catalysts, contributing to regional value creation and supporting the development of complementary sectors such as gastronomy, hospitality, and retail.

However, the cable car industry is facing far-reaching challenges. Climate change is impacting snow volumes, water availability, and temperatures critical for artificial snowmaking (Hall et al., 2018; François et al., 2023), leading to shorter winter seasons due to reduced snow cover duration (Formayer, 2011). Even if snow cannons can be operated sustainably, they are often perceived by the public as unsustainable due to their high energy and water usage (Rice et al., 2022; Spandre et al., 2019). This perception can lead guests to view the sustainability efforts of individual destinations as inadequate, despite substantial initiatives (Gasser & Gotsch, 2024). These combined changes threaten the viability of ski tourism-dependent communities, particularly in rural mountainous areas where economic alternatives are scarce (Steiger et al., 2019). Consequently, tourism providers, ski hotels and especially cable car companies, as key drivers of a destination’s success, must adapt their operation and business models to remain resilient in this rapidly changing environment.

According to Dawson and Scott (2013), investments in snowmaking machinery have been among the most critical measures for ensuring the economic viability. However, latest reports challenge the effect of increased investments in snowmaking on resort sales or profits (Cognard et al., 2024). Alternative investments to adopt to climate change such as the development of year-round offerings, including activities like mountaineering, hiking, and biking alongside traditional snow sports has gained importance in maintaining attractiveness (Romeo et al., 2021). However, focusing on year-round tourism or non-snow-related activities poses challenges, as replacing the higher per capita expenditure of ski tourists with other visitors, such as hikers or mountain bikers, would require significantly larger tourist numbers (Witting & Schmude, 2019). Notably, Pröbstl-Haider et al. (2015) suggest that rising summer temperatures and increased sunshine could enhance the Alps’ appeal for non-winter activities, providing an opportunity to diversify tourism beyond the winter season. Additional adaptation measures include building of ski resorts at higher elevations to take advantage of lower temperatures at higher altitude (Dawson & Scott, 2013). Also, a generally stronger focus on the evolving consumer preferences for sustainability (Amacher Hoppler et al., 2021) have become popular. Altogether, it can be expected that cable car companies are highly engaged in introducing adaptation measures by choosing from a variety of options.

Theories that can help to explain adaptation measures of cable car companies include groupthink on an inter-company level (cf. Janis, 1972). Cable car companies often operate within close-knit networks. Enabled and supported by strong standard setting industry associations, they cooperate in the field of training for technical staff and exchange of management practice. Also, given their geographical location in rather remote mountain regions induce a certain closeness in culture which can foster groupthink – limiting critical evaluation and reinforcing familiar strategies over innovative solutions. Groupthink arises when members of a group prioritize conformity and harmony to such an extent that they avoid exploring alternative viewpoints that might disrupt the group’s cohesion or provoke conflict (Nickerson & Argyres, 2018). In context of the cable car industry, this effect can even be strengthened over time because of path dependencies. Due to their size and long-term nature, investment strategies of cable car companies exhibit high path dependencies, e.g. prior investments in winter-focused models overshadow opportunities for diversification, such as year-round tourism or sustainability initiatives. Following a kind of group pattern makes it difficult to escape in the next investment round. Such path dependencies pose risks in adapting effectively to the rapidly evolving challenges of climate change. Managers usually base their decisions on what can be called theories-in-use approach (Zeithaml et al., 2020). A theory-in-use is a person’s mental model of how things work in a particular context (Argyris & Schon, 1974). Altogether, it can be expected that adaptation strategies of single companies follow patterns – and as a result specific patterns can be identified.

To better understand the adaptation of the cable car companies to climate change, we aim to identify the type of measures and evaluate whether cable car companies can be grouped based on how they respond to the challenges of climate change and shifting consumer demands. By identifying companies with similar strategic approaches based on the chosen adaptation measures, we can reveal patterns that may reflect common tendencies, and industry-specific strategy patterns. To address these research objectives, this study employs cluster analysis as a methodological approach to categorize firms into distinct groups based on shared characteristics and strategic behaviors. This analytical technique facilitates the identification of heterogeneous adaptation strategies, enabling a nuanced understanding of the varied responses among companies. The findings derived from this approach provide critical insights into the strategic adaptation patterns within the industry, offering a robust foundation for the development of tailored and actionable recommendations.

2 Methodology

Between March 26 and May 7, 2024, a survey was conducted among the approximately 350 members of Seilbahnen Schweiz (SBS), the Swiss cable car association. The survey aimed to analyze how cable car companies are adapting to climate change and to identify differences between company types. The goal was therefore to gain an overview of the industry’s perspectives, as well as its sustainability and resilience in the face of climate change. The survey did focus on planned or implemented measures. The project was initiated and financed by SBS.

In the end, the number of fully usable completed questionnaires, and thus the sample size, was 93. The response rate of positively usable answers was therefore at a reasonable level of approximately 27 %. The members of SBS include also a large number of rather small ski lift companies with limited administrative capacities which naturally reduce response rate. The sample consists of 69 smaller cable car companies with less than CHF 5 Mio turnover (74 % of the total sample) and 24 larger companies (26 %). While smaller companies might have limited investment capacities and also smaller relevance for their region, they are still well represented in the sample of this study.

The structure of the questionnaire is based on a survey conducted in 2008 by Abegg et al. on the same topic, with SBS also serving as the initiator of that survey. The aim was to establish a high degree of comparability between the two surveys in order to better assess development flows and changes affecting cable car companies over the last 16 years. The results of this comparative analysis will be published in 2025 (Mitterer & Bieger, in press). However, the questionnaire has been further developed to incorporate new measures, such as adventure sports, and additional aspects related to sustainability, ensuring its relevance to the current societal context. It covered several subject areas from operational key figures to adaptation measures that the companies had already implemented or were planning to implement. The adaptation measures were divided into the following six categories: Safeguarding snow sports tourism, expansion of alternative winter offerings, expansion of summer offerings, financial and other strategic measures, marketing measures and sustainability measures to reduce the company’s own emissions of atmospheric greenhouse gases. Each category in turn included five to ten specific measures, for which the companies surveyed could indicate whether they had already implemented them or were planning to implement them in the next five years.

Following the data collection and for the identification of companies with similar patterns of adaptation measures, a hierarchical cluster analysis, combined with a discriminant analysis, and a descriptive segmentation analysis of the revealed clusters were carried out. The aim was to group together companies with comparable adaptation measures to identify differentiated strategic patterns and approaches. This process resulted in the identification of four distinct clusters, which were subsequently analyzed in greater detail.

3 Data analysis

Based on Backhaus et al. (2023), a four-step procedure was followed to identify and validate the cluster solution. First, a dendrogram generated by the single-linkage algorithm was used to visually identify potential outliers, though no cases were eliminated. Second, a hierarchical cluster analysis was conducted to determine the optimal number of clusters. The Ward algorithm was chosen, as it tends to produce more evenly sized groups compared to other clustering methods (Backhaus et al., 2023, p. 517). The squared Euclidean distance was used as the distance measure for the analysis. Both the dendrogram and the ‘Elbow Method’ suggested a four-cluster solution (see also figure 1, and figure 2 in appendix). The Elbow Method is a technique for determining the optimal number of clusters by identifying a ‘bend’ (elbow) in a scree plot, which shows the change in the heterogeneity measure as a function of the number of clusters, marking the point where adding more clusters yields only a minor reduction in heterogeneity (Backhaus et al., 2023, p. 524). According to the four-cluster result, k=4 was selected as the input for the k-means algorithm, which then produced the final cluster solution. The k-means analysis converged after 7 iterations, resulting in four distinct clusters, with sizes ranging from 8 to 42 cases. The clusters were characterized by varying strategic focuses which will be discussed in full detail later in this research note.

Finally, the robustness of the clustering solution was assessed through discriminant analysis. This analysis demonstrated significant differences between the clusters, confirming the robustness of the clustering solution. Three canonical discriminant functions were derived, all statistically significant (p < .001). The first function contributed the most to the differentiation between the clusters, as indicated by its very low Wilks’ Lambda (.002) and high canonical correlation (.963), explaining 55.3 % of the variance. The second and third functions also made significant contributions, explaining 28.5 % and 16.2 % of the variance, respectively.

In summary, the validated clustering solution provides a solid foundation for analyzing the different patterns of measures applied and their underlying strategic approaches the companies are taking to adapt to climate change.

4 Description of the clusters

As mentioned above, besides questions on adaptation measures to climate change, the questionnaire also included questions on operational key figures to characterize the cable car companies, enabling a deeper analysis of how company-specific factors influence their adaptation strategies. Specifically, information was requested on last year’s turnover (in year 2023), the total ski slope length, the total snow-covered slope length, and the lowest and highest altitude of the individual companies.

The four distinct clusters of cable car companies differ significantly in terms of size, economic performance, and geographical location as follows (see also table 1, and table 2 in appendix):

Cluster 1 is the largest group, comprising 42 companies, and is characterized by limited resources. These companies generate the lowest average revenue of CHF 476,437 and are located at relatively low altitudes, ranging from 798 meters to 1,160 meters. The average slope length is only 19.93 kilometers, of which 6.74 kilometers are covered by artificial snowmaking.

Cluster 2 consists of 26 companies of moderate size. These companies achieve an average revenue of CHF 7,989,919, and their operations span altitudes between 1,044 meters and 1,977 meters. The average slope length is 39.31 kilometers, of which 16.88 kilometers are equipped with artificial snowmaking.

Cluster 3, the smallest group with 8 companies, reports an average revenue of CHF 7,373,250, which is slightly lower than that of cluster 2. However, cluster 3 benefits from slightly higher altitudes ranging between 1,152 meters and 2,007 meters, providing better snow reliability. The average slope length is 48.75 kilometers, which is significantly longer than that of cluster 2, while the 17.00 kilometers of artificially snow-covered slopes are comparable in size of those of cluster 2. Although clusters 2 and 3 are structurally similar, significant differences in adaptation measures, which will be discussed in chapter 5, can be identified.

Cluster 4 includes 17 large companies that are the economically strongest in the analysis. With an average revenue of CHF 12,686,148, they significantly outperform the other clusters. These companies operate at high altitudes between 1,128 meters and 2,278 meters, ensuring excellent snow reliability and extended winter seasons. The average slope length is 59.65 kilometers, of which 30.82 kilometers are artificially snow-covered.

5 Interpretation of the results of the cluster analysis

As explained above, cluster analysis recommended a four-cluster result. The four clusters can be analyzed and interpreted regarding their company specifics as follows:

Cluster 1: Small conservative companies

1. Safeguarding snow sports tourism (as far as they can afford): As a result of the relatively low average revenue, companies in cluster 1 are characterized by a limited investment capacity, and, also as a result of their low average altitude, do not envisage any significant expansions or improvements to safeguard snow safety in the near future. The planned snowmaking investments amount to only 1.35 kilometers, which indicates a defensive approach to extending artificial snowmaking. They generally concentrate on their existing resources and have little scope for extensive investment in new snowmaking technologies or the expansion of snowmaking systems.

2. Expansion of alternative winter offer: The companies in the first cluster also show little interest in expanding their alternative winter offer and continue to rely mainly on traditional ski tourism. Winter sports activities such as snowshoeing or toboggan runs are rarely considered. Other winter offers, such as the organization of winter events or winter sports competitions, are generally not part of the strategy.

3. Expansion of the summer offer: The focus on summer operations is rather low in cluster 1. These companies may not recognize the potential of year-round tourism or may not have the resources to develop summer activities such as hiking trails, mountain bike trails or summer toboggan runs.

4. Financial and other strategic measures: There is no significant cooperation with other companies or local players. Cooperation with the public sector to finance infrastructure expansion or to safeguard against a lack of snow also appears to be a low priority. These companies are generally reliant on their own financial resources and have little scope for risk diversification or future expansion. In many cases, this could indicate a rather defensive management approach that does not take any major financial or strategic risks.

5. Marketing measures: Marketing measures in cluster 1 are essentially minimal. Also, these companies do not focus on promoting good weather or nature-based tourism. They also do not emphasize sustainability in their advertising.

6. Sustainability measures: The companies in cluster 1 not only refrain from advertising measures in the area of sustainability, but have also not taken any significant measures to promote sustainability. There is no clear strategy for reducing the ecological footprint, for example through the use of renewable energies or the implementation of energy-saving concepts. One possible explanation is that these companies lack the resources or awareness necessary to invest in sustainable technologies. Moreover, sustainability is often not recognized as a strategic advantage; rather, the emphasis tends to remain on preserving their traditional offerings.

Cluster 2: Sustainability-oriented medium-sized companies

1. Safeguarding snow sports tourism: In comparison to cluster 1, the companies in cluster 2 have already taken steps to safeguard snow sports tourism in form of significant investments in artificial snowmaking or would like to do so in the near future, with planned snowmaking investments of on average 3.75 kilometers. They rely on the expansion of technical snowmaking systems or invest in grooming investments like flatten and leveling the underground to reduce the required snow depth to be able to guarantee a stable winter season in the future.

2. Expansion of alternative winter offer: Cluster 2 shows a broader range of winter offers in comparison to the first cluster. In addition to traditional winter snow sport, these companies also offer snowshoe and winter hiking trails. These activities appeal to a broader target group that prefers more than just traditional skiing related activities. Winter sports competitions such as ski races or the construction or expansion of toboggan runs are also an integral part of the winter offer. This diversification enables the companies to position themselves more broadly and benefit from different market segments, making them more resilient to fluctuations in traditional ski tourism.

3. Expansion of the summer offer: Cluster 2 has a clear focus on expanding the summer offer. Hiking trails, mountain bike trails or playgrounds are offered to extend the tourist offer beyond the winter season. These companies try to generate year-round demand and thus mitigate the effects of seasonal fluctuations. Offering themed hiking paths, events on the mountain such as an open-air festival, alternative activities, and fun sports like paragliding or ziplines and a wider range of gastronomic options are additional areas of investments. These measures are evidence of a long-term focus and a clear strategy to ensure a stable flow of income around the year.

4. Financial and other strategic measures: Cluster 2 makes selective use of partnerships to exploit financial and strategic synergies. In particular, partnerships with other ski resorts with higher snow reliability are in progress or planned.

5. Marketing measures: Companies are increasingly applying sustainability-oriented strategies. Advertising that focuses on the ecological footprint and nature-based tourism is increasingly becoming important. Their marketing messages are aimed at travelers who value environmental awareness and sustainable practices. They are also increasingly emphasizing their diverse summer offerings and snow safety in their communications.

6. Sustainability measures: A stronger focus on sustainability is particularly evident also regarding their own ecological footprint. They invest in renewable energies, for example by purchasing green electricity or producing their own energy, such as through photovoltaics. Energy-saving measures and improving energy efficiency are also an integral part of the operating concept. In addition, many of these companies take further measures in the area of mobility, such as the use of public transportation. With their comprehensive measures to reduce carbon emissions, the companies in cluster 2 are on a par with the particularly innovative cluster 4 of this study, which is discussed below. These initiatives not only help to reduce the company’s ecological footprint, but also enhance its reputation as an environmentally conscious company and strengthen the quality for customers.

Cluster 3: Proactive and diversified medium-sized companies

While structurally similar to cluster 2, cluster 3 show differences in each of the dimensions discussed.

1. Safeguarding snow sports tourism: Cluster 3 shows a high willingness to invest in snow safety. These planned investments primarily include expansion of artificial snowmaking significantly higher than cluster 2 (8.13 kilometers) and investments in flattening and leveling the underground to reduce the required snow depth. In addition, the installation of ground-independent transport systems such as chairlifts is of importance. Therefore, in comparison to cluster 2, the activities in maintaining snow sports are more intense.

2. Expansion of alternative winter offer: A distinctive factor of cluster 3 is the expansion of the offer to appeal to a broader target group. These companies invest in alternative winter sports such as toboggan runs, snowshoe trails and winter hiking trails. In addition, and in contrast to cluster 2, winter events, for example in the form of concerts or winter sports competitions, are added to the portfolio of winter activities. Such offers are aimed at families, leisure guests and less experienced winter sports enthusiasts and therefore help to reduce dependence on traditional ski tourism.

3. Expansion of the summer offer: The companies in cluster 3 also emphasize expansion of their offerings in summer. The focus is on expanding hiking trails, themed hiking paths and mountain bike trails. At the same time, and in contrast to cluster 2, they use their existing infrastructure – such as ski lifts – to promote year-round tourism, for example by transporting mountain bike tourists. In addition, summer events are being organized, playgrounds and fun sports are being offered and the range of restaurants is being expanded.

4. Financial and other strategic measures: In comparison to cluster 2, the companies in cluster 3 rely not only on strategic cooperation, for example through ski pass offers with neighboring ski resorts, but also with local companies, for example in the form of sharing machineries. The use of existing snow sports investments, for example water reservoirs as swimming lakes in summer, also demonstrates the flexibility of these companies to strengthen year-round tourism. Acquiring public subsidies and investment support is important to them.

5. Marketing measures: These companies make use of a broad range of marketing measures. Promoting nature-oriented and sustainable offers as well as good weather and snow conditions are important. In comparison to cluster 2, cooperation with environmental organizations or participation in sustainability certifications also play an important role in the marketing of these companies. In addition, there is an increased communication of a wide range of summer offers.

6. Sustainability measures: Cluster 3 shows interest in actively reducing greenhouse gas emissions, albeit less intensively than cluster 2. They focus primarily on the introduction of an energy-saving concept and support more climate-friendly access for visitors with public transport.

Cluster 4: Large and innovative companies

1. Safeguarding snow sports tourism: Cluster 4 places the strongest focus on safeguarding and even further developing snow sports. The planned snowmaking investments amount to 11.65 kilometers, which underlines the investment power of these companies. In addition to expanding artificial snowmaking facilities, they are investing in the professionalization of slope maintenance, including snow compaction and snow clearing. Compacting the snow creates a more stable surface, making it more resistant to heat, while snow clearing involves removing excess snow from slopes. Companies from cluster 4 are also increasingly focusing on concentrating snow sports activities at higher altitudes, including investments in transport facilities, and are the only cluster to abandon slopes that require too much artificial snowmaking to maximize overall snow safety. Also, companies in the fourth cluster invest in leveling and flatting of underground to reduce the required snow depth.

2. Expansion of alternative winter offer: Cluster 4 shows a high level of dynamism in the development of new winter offers. In addition to traditional snow sports, these companies offer a wide range of activities, including snowshoeing and winter hiking, toboggan runs and winter sports competitions. Winter events such as concerts, shows and parties are also an important part of their strategy to appeal to a younger audience and event tourists. They are also the only cluster to focus on fun sports in winter, such as snowkiting, tubing and winter golf.

3. Expansion of the summer offer: In line with the third cluster, the companies in cluster 4 are investing heavily in expanding their summer offerings. For example, hiking trails, themed hikes, mountain bike trails and playgrounds are being created. The summer offer is also being supplemented with fun sports and events. They are also focusing on converting existing winter infrastructure for summer use and expanding gastronomy.

4. Financial and other strategic measures: Strategic collaborations, such as ski pass agreements with other snow-sure areas, are part of their portfolio of measures. Like the third cluster, cluster 4 also make effective use of their existing infrastructure, e.g. converting reservoirs into bathing lakes in summer. On the other hand, they are the only cluster to increasingly rely on dynamic pricing systems that are adapted to weather and snow conditions, as well as prepayment models to stabilize income.

5. Marketing measures: In terms of marketing, the companies are pursuing a set of measures advertising intensively with snow reliability, their commitment to sustainability, nature-based tourism and a wide range of summer offers.

6. Sustainability measures: Cluster 4 is a leader in the implementation of sustainable measures. In addition to energy-saving concepts and the purchase of certified renewable energies, these companies invest heavily in their own energy production through photovoltaics, wind power or small hydropower plants. They also focus on mobility measures, e.g. through e-charging stations and the promotion of public transportation.

6 Discussion

The results of this study show that the adaptation strategies of Swiss cable car companies to climate change vary and can be grouped into four clusters. These clusters correspond to four different strategy patterns with different investment priorities. As suggested in the existing literature, rather ‘defensive’ measures to maintain traditional snow sport like increasing artificial snowmaking and measures exploiting new opportunities with other winter or summer and year-round activities are employed together with measures to increase the company’s own sustainability. However, a new aspect not reflected yet in the existing literature are financial and other strategic measures. Assuring new financial investment means or strategic partnerships prove to be relevant and important aspects of the overall adaptation patterns.

While these different ‘axes’ of adaptation as above mentioned often are combined the weight of each varies significantly depending on external and internal factors. External factors, like altitude and size of the ski area, impact the weight of investments in maintaining snow sports. Size and financial strengths obviously allow more investments in ‘heavy’ measures. Financial and strategic measures require management capacities and are also rather taken by bigger companies. Consequently, medium-sized and large companies from clusters 2, 3 and 4 emphasize securing winter sports tourism through technical measures such as the expansion of snowmaking systems and sustainability measures, with renewable energies, energy-saving initiatives, and sustainable mobility solutions. Moreover, these companies are expanding their summer offerings by providing activities such as hiking trails, mountain biking routes, and summer events to generate new revenue streams.

Small companies in cluster 1 have limited financial resources, which significantly restricts their adaptation measures. These companies primarily focus on traditional winter sports offerings and show little engagement in diversification or sustainability. Large companies in cluster 4 demonstrate extensive investment capacities and implement innovative alternative financial and strategic measures. They adopt modern technologies, dynamic pricing systems, and comprehensive sustainability strategies that can serve as models for the industry. Medium-sized companies in clusters 2 and 3 occupy a middle ground. While cluster 2 prioritizes sustainability, cluster 3 places a stronger focus on safeguarding snow sports tourism, emphasizes diversification with a broad range of alternative winter and summer activities, and is also more active in marketing measures.

The study has some limitations. While the sample includes a high proportion of cable car companies, allowing for meaningful insights into their adaptation strategies, the findings may still not fully capture the strategic nuances of individual firms. Geographical location and differences in market access which is an important driver for strategy for example is not covered. Another limitation lies in the self-reported nature of the data, which can introduce potential biases, such as over- or underestimation of adaptation measures due to subjective perceptions or social desirability.

As mentioned, existing literature does not yet cover financial and other strategic measures which as the study shows for specific types of cable car companies have a strong importance. Future research should therefore closer look into types and effects of measures like cooperation and collaborations, alliances and tariff systems but also the role of different financing measures and strategies. Also, the process of decision-making for strategic investments in adaptation to climate change could provide deeper insights into how and why decisions are taken, particularly regarding path dependencies and theories-in-use.

The findings of this study have important implications for the tourism industry in alpine regions. Because of the role of cable car companies as critical elements in destination systems, the reflection of the adaptation strategies in destinations, benchmarking and comparing them is important for the development of destination strategies. The identified clusters might help to lead this reflection process.