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Originally Posted by therusty
Congratulations Skiingman - you've got me nailed. I'm a condescending white guy who is full of it.
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Sweet. I was hoping I wasn't too far off the mark.

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| I work for a day trip resort near DC. |
While the rest of what you say in that paragraph is undoubtedly valid, I'm confused as to why you assume working for a day-trip place near DC is analagous to the pricing practices of publically owned corporations with millions of skier visits and dozens of "marketing professionals" making the pricing decisions. Everything I've said about the fact that there is no negative effect on resort revenue from the practice of selling cut tickets has (I hope) specifically addressed the ASC type situation. I realize how far that is from the local place situation, and as noted I've never seen a ticket cut and sold at our local place.
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| For example, last year we offered free lessons before Christmas. I asked the man that makes the decisions "Why"? What was the intent of the program? His response was "We're just experimenting. We don't know what the results are going to be. We have no expectations." |
Why would you assume the other decisions that the business makes are based on facts any more solid than the ones this one is based on?
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Each year's prices are pretty much set by adding a couple of bucks to last year's prices. From prior year discussions I know that management is well aware that raising prices too much cuts down skier days. I've been watching our pricing very closely for the last 5 years. I can see the little things that they have been working to accomplish. Under the previous ownership prior to that, there was much less method to the madness but reinvestment was the basic modus operandi. For the last 5 years we have seen lots of evidence that the bottom line is what is most important and that the top line is a key factor in achieving that.
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| But even at a destination resort, lift tickets are a significant portion of the total revenue. |
I think management at those resorts realizes thats not always a good thing for their business model. Bad snow year, you are screwed. If you make more of your money on restaurants, real-estate, lodging, equipment sales, and so on, you may be able to suffer less when the number of people making short term commitments declines.
You acknowledge that they know that higher prices have an adverse effect on skier visits. If that's the case, why don't the destination resorts with excess infrastructure drop the prices to bring in more people who will eat more hot-dogs and drink more beer? Why not sell midweek tickets for 40 bucks and see what happens?
My (to me obvious) answer is that it becomes harder to monopolize the local lodging if people can pay a reasonable price for the skiing portion of the equation. Backing up my logic is the fact that the destination resorts often offer special deals to local people. If you aren't coming from somewhere else and lodging near the resort, they'll often offer you a better price to encourage you to visit more often.
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| Although there are a few people who go to a resort that will turn around and go home if they can't get a cut ticket, my guess is that over 80% of cut ticket users would have bought a regular ticket if no cut ticket was available |
My guess assumes a much smaller percentage. Perhaps this is because I'm closer to the economic status of the typical young male ticket cutter. Perhaps your guess is better than mine. Point is, no one really knows. If the resorts wanted to, it would be
plenty easy to figure out, and
plenty easy (and reasonably cheap in the grand scheme of things) to prevent the practice entirely.
I've seen absolutely no evidence to suggest that the majority of resorts have done this. Either they completely ignore the practice, make a teensy effort to discourage it (signs at the Canyons in the village), or they do something involving technology that often only appears to make the problem go away.
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| You have to admit that at least some of the cut tickets are simply lost revenue. |
My 4 skier model did admit that. It merely claimed that the additional revenue can be greater than the lost revenue. This is based on my assumption that fewer than 80% of ticket cutters are willing to drop bank on full price tickets. Personally, I've never engaged in the practice, but when I've been denied my freebie for whatever reason I've always gone someplace else instead. This is easier in some areas than others.
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| Ok - now that I think it about it more, I guess the end result is that the lost revenue translates more directly to less investment the next season. So it's only indirectly that you are stealing from everyone else on the mountain. Since you don't see this as theft in the first place, it's a moot point. |
This is again based on your assumption that the practice causes a net loss of revenue. I think its less clear cut, and I think the lack of effort on the resorts parts suggests I'm right. If they know its costing them money and they are doing so little about it, shame on
them for being lousy businesspeople.
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| I can see how you can see that the non-transferrable rule makes no sense. |
Its not so much that I see it as unfair or nonsensical as just plain disingenuous. The resorts make the choice to advertise and sell it as an eight hour ticket. They could just as easily sell it as an 8 hour pass for a single user, but I've never seen those words used outside of skiers talking to each other.
If I bought a concert ticket that said on the face of it that it was good for a particular thing on a particular date, but the back pointed out in little type that I can't legally sell it I'd be equally annoyed.
Its just another example (to me) of business getting away with claiming to provide one thing and actually providing something completely different.
BTW, if the snow report says 24 lifts will be running when you check it at 6am, and you show up at 8:30 and every lift is on hold, don't expect a refund or any sympathy from the resort. I'd love to see ticketmaster try and get away without refunding tickets when an event is cancelled.
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| But I see alternatives where you don't. In some small sense I wish you would not "cut tickets" in the same way I wish you would not cheat on your taxes. |
Even if I did think the issues with cutting tickets were valid, I'd still have to say they are a lot less consequential than cheating on the taxes. Probably more people do the latter. Few people express disgust or outrage at this. I've not seen a 350 post thread anywhere about how awful it is that people can get away with paying less than their fair share.
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| I'd like to argue that making tickets transferrable would be more profitable for resorts! (I don't believe it, but I would not mind arguing it). |
The suggestion that they could offer a transferrable ticket for a premium price is a good one. When the technological devices that will make cut-tickets less feasible see more widespread use, I'd be surprised if we didn't see more of those premium transferrable passes.