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Ski Resort Economics: What really works? - Page 5

post #121 of 124
Quote:
Originally Posted by tball View Post
 

Vail's strategy of acquiring or doing pass deals with smaller local results is brilliant.   For the cost of a season pass at the smaller resort, folks get to ski at Vail's destination resorts for free.  That pretty much gaurentees if those skiers take a trip it will be to a VR resort.

 

They did the same thing with the pass deal with Eldora.   It's really, really hard for anyone in the Boulder area to justify buying anything but an Epic pass because of the Eldora deal.

 

It will be interesting to see if they can do the same with Monarch.   That would lock in the Colorado Springs market for VR.   Resistance is futile.

 

Vail did studies that showed MN and MI have the highest number of 'vacation skiers' of any state in the country.   These are people who travel to another state for multi-day ski trips.   Minneapolis has a TON of downhill skiers who hardly ever ski in-state but head to CO 2 or 3 times per year to go skiing.   If they can get those people to ski a few times per year at the local resort and still go to a VR location out west they'll make a ton of money.

 

The Epic pass is $180 more than Afton's normal season pass.   So for $180 you get unlimited skiing at any VR location.   We're getting this next season when our kids are ready for skiing out west.

post #122 of 124
Quote:
Originally Posted by focker View Post
 

 

Vail did studies that showed MN and MI have the highest number of 'vacation skiers' of any state in the country.   These are people who travel to another state for multi-day ski trips.   Minneapolis has a TON of downhill skiers who hardly ever ski in-state but head to CO 2 or 3 times per year to go skiing.   If they can get those people to ski a few times per year at the local resort and still go to a VR location out west they'll make a ton of money.

 

The Epic pass is $180 more than Afton's normal season pass.   So for $180 you get unlimited skiing at any VR location.   We're getting this next season when our kids are ready for skiing out west.


Why wouldn't you?  That $180 represents less than two days skiing Vail (I lived in Vail for two seasons way back when).  But the real money isn't with discounted season passes.  Parents want kids in ski school.  These people need lodging.  Even if Vail throws in free lessons or lift tickets, they make something on the lodging.  Those people have to eat, and they will eat on the mountains and in the villages.  People who only ski a few times per year from the Mid-West also need rental equipment, ski clothing, etc.  And what about those people who go back home and suggest their firms have conferences at these places?  Then there are the hot chocolate bars (I assume that idea will spread to all of Vail's resorts from Canyons), the zip-lining, the tubing hills, and every other idea they have to increase the customer experience while extracting their money.  The Holy Grail is real estate, and those Mid-West skiers may buy at some point.   Can Vail go into a place like Canyons or Afton-Alps and increase revenue by 20% overnight?  Well, we will know two 10-Qs from now.  I think they can.

post #123 of 124
post #124 of 124

Here is an interesting talk by Rob Katz giving insight into Vail's client-centered operations, among other things: http://extras.parkrecord.com/video/100913%20Vail%20CEO%20Rob%20Katz.mp3

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