Originally Posted by nolo
That's what I'm afraid of, that even the best ski areas run at a loss.
I beg to differ with you.
Deer Valley, ranked yearly in the top 3 North American Resorts does not and has run at a loss for many years. This i know to be true, due to my former 15 years of employment with them.
Dept. Managers will have the next years budget returned to them un approved , untill they can meet the goals set by the owners(Mr. Stern and Mr. Penske)
If they want anything new, they have to prove with out a doubt it will help the resort, and can be proftable.
If Deer Valley can't pay cash for a new lift or a new snowcat or new uniforms, they don't buy it.
They are a privatly ownd company, no stockholders to answer to. Every penny Mr. Stern earns goes right back into the resort. it's his wish to have the best possbile service, food,and over all quality skiing.
Dept. Directors and Dept. Managers raises are partly based on if thier budgets, didn't bleed to bad.
now look at the big super resorts owned by large corpreations, ie:ASC. They buy resorts left and right, drop millons of $$ into the resort that first summer, expecting a high return. then they report huge a huge lost.(1st summer the Canyons was owned by ASC, they dumped 75 millon into upgrades. and they still haven't crawled out of the red.) they then did the same at Heavenly, and ended up selling to Vail.Because they didn't get a good return.
ww.saminfo.co is the industry trade magazine, you can serch there for what resort is operting in the red or black, publicly owned resorts.
It doesn't work that way. Build a little at a time, let the bank account breath a little.