Winter is the time when mountain railroads earn money. If winter is not profitable, summer will soon be over too.
That's absolutely not true. The truth is: In contrast to excursion railroads such as Jungfrau or Titlis, most mountain railroads make over 90 percent of their turnover in winter, although almost all of them also run in summer. But because the regional economy has so far been heavily dependent on winter sports, financially ailing lifts are being rescued. Operations are restructured and continued, even if they no longer cover costs.

Who covers the funding gap?
The gap is covered by municipalities, cantons, tourism companies, many regional companies and, time and again, private individuals - all of whom depend on winter sports operations being possible. For example, without contributions from the canton of Glarus, the cable cars in Braunwald and Elm would soon cease to operate. In general, public funding for mountain railroads is increasing.

Ski resorts are having to invest more and more in snowmaking. This makes it even more difficult to cover costs. Can they still get out of this dilemma?
It really is a dilemma. Areas at lower altitudes in particular are caught in a severe cost-income squeeze. They have to look for income opportunities that are independent of winter and skiing.

What contribution can mountain bike tourism make here?
How much mountain bikers contribute depends on how strongly the destination focuses on them. Lenzerheide generates interesting income in summer - also because day tickets are sold. Most mountain bikers use the mountain railroads several times, unlike hikers and day trippers. Nevertheless, the revenue per guest is lower in summer. The exceptions are excursion railroads such as Titlis, Jungfraujoch and similar. This means that even if the same number of people arrived in summer as in winter - which is almost never the case - the revenue would be much lower in summer.

Is it more expensive to transport skiers or mountain bikers?
Ski operations, i.e. snowmaking, grooming and securing the slopes, are much more expensive than transporting mountain bikers, even if trails have to be built and maintained for this purpose.

How lucrative are bikers for mountain railroads?
Not as lucrative as it might seem. The construction and maintenance of trails is also expensive. In addition, the transport capacity with mountain bikers is much lower: eight skiers need as much space in a gondola as two to three bikers. As a result, the Rothornbahn in Lenzerheide, for example, runs at its capacity limit with mountain bikers at certain times and can only transport a third to a quarter as many people as it would in ski mode. Railroads that cover their operating costs with mountain bikers have already achieved a lot.

Is there still potential for growth in the mountain bike segment for mountain railroads?
Over the whole of Switzerland, I don't see any great potential for growth. There are already a relatively large number of providers in this market. Additional market players will hardly attract as many additional customers as would be needed. So it's more a case of redistributing the existing pie. However, the decisive factor for individual destinations is whether they manage to specialize and develop a unique selling point. If so, then there is still room for improvement.

In the mountain bike market, e-bikes are the sales drivers. Could they be the same for mountain railroads?
That is still completely unclear at the moment. The mountain railroads have their eye on e-bikers. The mountain railroads are keeping an eye on e-bikers, but they are also aware that new approaches are needed as to how the mountain railroads can do business with e-bikers.

Wouldn't it be worthwhile for certain resorts to stop operating skis and thus massively reduce costs? Then they would need fewer guests to cover their costs.
This would mean a massive loss of added value for an entire region. Fewer guests would arrive, there would be too many hotel beds, the ski school would have to close. Jobs would disappear. Nevertheless, some resorts are already having to consider whether they should concentrate on the summer season and only offer skiing when conditions permit. Some small resorts are already doing this. Another disadvantage of this model, however, is that operating a lift costs the same whether it transports many or few people. Maintenance, renovation and compliance with safety standards are enormously expensive and involve high investments.

All cableways are struggling to attract enough guests. Are there too many lifts in the Swiss Alps?
That is clearly the case.

In a free market economy, services for which there is too little demand should actually disappear. Will this happen in the mountain lift sector?
Until now, every area in financial difficulties was absorbed and continued to operate. Apart from very small ski resorts, not a single one has been abandoned. But the pressure is increasing. Summer-only operations are becoming an issue again.

The future of mountain railroads is often equated with a fight for survival. Are there also areas that can expect growing profits in the coming years?
Higher-altitude areas that stand for clear winter expertise can expect moderate growth. Areas that also have attractive summer and excursion offers, such as the Titlis, the Jungfrau region and Zermatt, have the most potential.

Do mountain bike offers also need to grow in summer?
This can help to switch from winter to annual operations, although this market should not be overestimated for the mountain railroads. Unless they find a way to become attractive for e-bikers.

Born in Samnaun, Roland Zegg founded grischconsulta AG in Chur in 1987. It advises mountain railroads, destinations and municipalities in the Alpine countries. Zegg is the author of various publications on tourism issues, Vice President of Zermatt Bergbahnen AG and a member of the Board of Directors of Bergbahnen Destination Gstaad AG. The mechanical engineer and business economist also initiated ibex fairstay, a Swiss label for sustainability in tourism. Roland Zegg will speak at the Ride Congress 2018 on the topic of "The future of mountain railroads and the role of mountain bikers"