Healthier Seniors, Higher Ski Prices?
My son, who does downhill skiing, noticed that the resort he usually visits has changed its pricing policy. It used to offer free lift tickets to skiers ages 70+; now it only gives them a 20 percent discount off the regular rates. This change makes sense. My guess is that in times past, fewer older seniors even thought of skiing; and those few who did were somewhat marginal—had a fairly high demand elasticity. Today’s older seniors are healthier, have more skiing experience, and thus probably have a lower demand elasticity. It thus makes sense for the resort to reduce the extent of discrimination favoring old folks in its pricing scheme. (HT: MAH)