Raising Prices Was Not an Option

Jan Brand, Chairman of the Board at Bergbahnen Destination Gstaad AG (BDG), explains why the company is now part of the Magic Pass network.

In a recent address at the general assembly of the DO (village organisation) Schönried, Jan Brand didn’t sugarcoat the challenges facing the region’s mountain lift infrastructure: “We simply don’t have enough hotel beds—or even enough warm beds—to operate a capital-intensive ski infrastructure like ours efficiently,” he said. “It’s a chronic issue. Gstaad boasts a large ski area, but often it feels empty.”

He stressed that this is not a new phenomenon—it’s been this way for three decades. In the ski industry, where volume is key, attracting a high number of visitors is essential to covering fixed costs and ensuring long-term viability.

Low occupancy, high costs
From BDG’s perspective, the 2024/25 season delivered just three excellent days and two good ones. “Even in January, with fantastic weather and great snow, we never exceeded 10,000 day entries,” said Brand. February showed similar patterns, and summer performance has been even weaker. “Fewer guests mean less revenue, while operating costs continue to rise. That’s our reality.”

In the past three years alone, BDG’s electricity costs have soared by nearly 90%—an increase of CHF 1.7 million. “Clearly, we had to act.”

Why a price spike was off the table
As part of the Top4 ski pass alliance, BDG felt it was heading in the wrong direction. “Some of the other players pushed for higher prices—but that didn’t work for us,” Brand explained. Historically, season passes sell best in the CHF 400–600 range. Every price increase saw a drop in sales, and BDG bore the brunt more than other resorts.

Initially, we were collecting CHF 6 million from the Top4 pool. That had dropped to CHF 3.5 million by the end. With that in mind, increasing prices simply wasn’t an option.

The move to the Magic Pass felt like a natural step. “We’re hoping it will better position us for the future,” said Brand. “We aim to slightly boost revenues and at least cover our fixed costs.” A bonus: the Magic Pass is valid year-round and includes Glacier 3000 in winter.

Early success and strong local support
Magic Pass launched its presale with 277,000 units sold and CHF 110 million in revenue. “In the Saanenland, nearly every second resident bought one,” said Brand with satisfaction.

Importantly, despite the more affordable price tag, the expected revenue per first-time entry will be roughly equivalent to what BDG previously received through the Top4 alliance. “Magic Pass has developed so well that the per-entry value has actually increased significantly.”

No fears of long queues
While long lift lines have made headlines in other resorts, Brand is confident Gstaad won’t face the same. “We still have plenty of capacity,” he assured. At 13,000 entries per day, guests can expect wait times of 3 to 5 minutes—15 minutes at peak hotspots, at most.
In comparison, Villars/Les Diablerets sees around 350 entries across 84 km of pistes. “We have 164 km and often just 200 entries,” Brand noted.

Two-thirds of BDG's winter visitors are day-trippers. The remainder comprises hotel guests (8–10%), second-home owners (8–10%), and locals. “We rely heavily on day visitors,” he concluded.

Investment is crucial
So, why is there a need for additional cash flow? “It’s simple,” said Brand. “By year’s end, we’re often left with little more than what we started with.” Future investments are off the table without additional funding—a situation BDG hopes to change.

A measured approach to growth
Magic Pass continues to expand, but not without careful thought. “They’re selective about new partners to avoid market cannibalisation,” Brand said. “We’re fortunate that Gstaad was accepted. There isn’t room for another major player in our catchment area.”

Looking Ahead: projects on the horizon
With the April 4th municipal vote approving the development plan, BDG has hit a major milestone. “The outcome confirms we’re on the right track,” said Brand. On the upcoming generation-defining lift projects: “We’re in our fifth year of planning. It’s progressing—but slower than we’d like.” Construction is targeted for spring 2026, beginning with the new reservoir, pending community approval at a future meeting.

Parking system still in progress
Don’t expect a fully operational parking guidance system this coming winter. “It’s a work in progress,” Brand admitted. Next season will see new signage at village entrances to direct drivers to available parking, and several lots—including Saanenmöser, Rübeldorf in Gstaad, and Rougemont—will be upgraded with wooden platforms and, in some cases, reopened.

As for traffic congestion during peak departure times, BDG has limited influence. “But we’re working closely with local municipalities and the canton to improve the situation,” said Brand.

Based on AvS | AMO