Enough of this off season! Last Spring was chock full o’ news with Vail Resorts and Aspen/KSL running amok with huge bags of cash buying up resorts. We’ll be keeping an eye on how that all shakes out.
We have some product reviews coming your way that you won’t want to miss.
You will likely finish reading this installment confused by the many twists and turns and incomplete directions. GOOD…You darned well should be! The ski industry is slowly killing itself and the reasons are as complex as they silly.
Trust me though, I’ll get you straightened out on it all by the end of this season 🙂
What finally shook me out of my summer doldrums were two articles from the same author and source. Both articles referenced “experts” who talked about why the ski industry isn’t growing. I am always interested in that subject and I read them both, several times.
What struck me was not the specific opinions of the two experts but how two experts could be looking at the same industry and come up with conclusions that are perfect opposites. Could it be that the industry is failing to grow because there simply isn’t anyone who knows what is really going on?
The first article I saw was posted by ISPO.com and you can read it here. READ ME.
Basically it claims that skiing is too “elitist” and needs to find a way to get more people from lower income demographics to participate. The article didn’t say it in so many words but I had the distinct impression that the intent was to socialize or, at least, to have governments subsidize snow sport participation.
China plans to grow snow sports in an unprecedented way. If they are successful they would nearly double the number of active participants in the world. I wrote about that last year in…
If the rest of the alpine world is to survive, they may well have to learn how to compete against government subsidized resorts in China and Russia.
From that perspective, I can sort of understand where this expert is coming from. BUT, it seems like “experts” in Japan, Korea, OZ, NZ, Canada, and the US are gearing up for what they believe will be a Wave of affluent Chinese coming their way.
Given that China has proved it can build a world class ski resort in less than a year, it is likely that millions of folks from Japan, Korea, OZ, NZ, Canada and the US will pass them in the air…on their way to China...to enjoy government subsidized, world class skiing…on a free seat on government owned Chinese Airliners.
What I am saying is that China would very easily take the decision to offer free everything from travel to lodging to meals and lifts. One or two seasons of that could absolutely trash the ski industry in most traditional alpine countries.
Sometimes I wonder if Vail Resorts and Aspen/KSL understand that the 30 some resorts they own between them will be the only ones open in 15 years and are aligning themselves to serve only the wealthiest of the wealthy from around the globe. It’s already cheaper to take the annual ski vacation in Europe than it is to Colorado. How soon before it is even cheaper to enjoy world class powder in China?
The second article, from the same author and website… different expert.….posted in the same week contends exactly the opposite…Skiing is not “elite” enough. It needs the elite and not the “masses”!
First, I am curious to know who gets to decide if YOU are an “elite” or a member of “the masses”. That decision almost never works out for you when you don’t get to make it.
This second article I didn’t spend a lot of time with. From the perspective of industry specific knowledge, the “expert” didn’t seem to have much. It was more like the standard Google/SEO – blast the world with “branding” thing that appears 400 times a day in my Facebook news feed.
From my view, it is really just a guy trying to sell some consulting time. I based that on the claim in the article that in a market populated by fairly affluent people he seems to think that dominating Google is the strategy of choice.
My thought is that the more easily you can define a target the easier it is to hit it. You go on LinkeIn, search keyword “ski” and bang – 1,000,000 affluent skiers that you can contact directly. His claim that “targeting” is dead is foolishly myopic and “tech-centric” and flies in the face of everything we know about how people in those “elite” classes make buying decisions.
Look, I am a free market guy and if you can get someone to spend $40 for a Cheeseburger by putting it on the menu as “Boeuf Haché avec du Fromage”…congratulations! PT Barnum told us many decades ago how that works.
I will make a prediction right now that $40 cheeseburgers and $300 lift tickets aren’t going to save the ski industry. Neither will socialized skiing.
Again, the problems facing the industry in its traditional haunts has been the same problem for more than 20 years. The number of participants isn’t growing and neither is the number of times they go skiing each season. The industry has known for a long time that they need to do a much better job of hanging on to beginners.
The woeful statistic is that 82% of people who try it, don’t come back. NOTHING the industry has tried in the last 25 years has had any significant impact on that number.
According to the 2017 global industry study by Luis Vanat, participation in snow sports has been, and still is, in steady decline in traditional alpine nations.
The only places where it is growing are in Russia and China.
The only demographic data that tracks directly with the decline in alpine sports is the decline of the middle classes in traditional alpine countries.
This conclusion is bolstered by the fact that Russia and China enjoy rapidly growing middle class. It is also supported here in the US that of the 200 plus ski areas lost in the last 20 years most are predominantly small, local, low cost ski areas.
The cost of a day of skiing has grown much faster than inflation during a period when fewer and fewer people could afford even the low end of the cost spectrum.
All that boils down to that the ski industry really cannot have any impact of political and economic models. If current political and economic policies are eating away at your sources of revenue then you have to do something.
There are two ways to make a million dollars. Sell one million people a one dollar item or sell one million dollar item to one person. Between those extremes there are any number of potential blends of strategy and tactics to reach that goal.
So far, all we see are companies inching their way up the ladder. The cost of participating in lift served snow sports has been rising at a rate much higher than wage growth.
At a time when part of your client base is rapidly disappearing to economic policies, driving prices in the opposite direction only exacerbates the problem. Given the shrinkage in youth participation, the industry may well be heading toward a bubble that will fundamentally alter it and leave it no means of recovery.
When I was a kid in the late 50s and early 60s there simply weren’t many ski areas around. There were mountains of surplus military ski equipment that could be used on whatever local bump kids used for sledding. Our family “ski vacation” consisted of driving up Thompson canyon west of Ft. Collins and skiing the roadside ditch. Mom would drive us up and Dad would ski down with the kids. Then Dad would drive and Mom would ski with the kids. I had been skiing 15 years before I experienced a mechanical lift at a ski area. The current growth in a return to those halcyon days of hiking for turns is a breath of fresh air
In many towns these days the local sledding hills are shut down due to legal liability concerns. Kids are less active generally. Thanks in part to the explosion of a million cliff hucking, drowning-in-an-avalanche, GOPro videos, millions of mothers are deciding that skiing is too dangerous for their children.
There seems to be a growing list of reasons to NOT participate. At least, that list is growing faster than the list of reasons to give it a go and stay with it. The high costs certainly make it easier to stay away.
There are a lot of reasons why people don’t stick with it. Costs are certainly a part of that equation. Costs won’t change until the industry feels that is the only way it can survive.
One of the reasons that shows up in the annual surveys is poor proficiency. People think their skiing sucks and who is going to spend their annual vacation money doing something they suck at?
The problem is that there is much the industry can and should do about proficiency but they simply don’t care to do them. Lessons are expensive and will remain expensive, period.
When ski resorts are operating a government granted monopoly, there will not be any competition for the monopoly ski schools. Until there is, instruction will remain as expensive as it is ineffective and customer losses to “poor proficiency” will continue. Collision accidents on the mountain due to poor proficiency and over-crowding will continue to climb.
Sure skiing is expensive. The interesting thing is that once you reach a point in your life where you have the time to go skiing and you can afford to go skiing, the industry isn’t interested in you anymore.
The outlook for increasing average proficiency is pretty bleak. Instructors with a lot of experience are “aging-out” of the profession and not enough young people are taking it up.
Instructor shortages are so severe that resorts are offering $1000 bounties to any employee who helps them poach an instructor from a another resort.
The outlook is so bleak, in fact, that the Professional Ski Instructors of America (PSIA) have taken to designing instructional programs for companies who make teaching machines.
But hey, it’s almost December and the local mountain is open. So, we’ll just keep on skiing and riding and muddle through somehow.
Kowabunga!! Tips Up Folks!