Ski Resorts advance planning in the “New Economy”

Think about how brilliant a business decision this is:

Mammoth Mtn., CA. sold a limited number, (38,000) of next year’s (09/10) season passes, at a fixed price of $576.oo each.

·         “it includes unlimited skiing and riding at Mammoth and June Mountains as well as other benefits throughout the season including, but not limited to, discounts on lodging, private events featuring early lift access on select days, and the opportunity to buy discount lift tickets for friends.” *source SAM Magazine.

There was a purchase deadline of May 1^st. All the passes are gone!

Now, Mammoth has $21,888,000.oo of operating capital up front. That’s nearly TWENTY TWO MILLION DOLLARS!!! Now they can:

·         Take that amount off of any line-of-credit

·         Cover operating expenses during the off season

·         Pay down loans

·         and at the same time, build a loyal customer base, create a public relations coup that could last a life-time and so much more.

There’s more:  

·         If a “Guest” outside the local population base purchased this pass and still comes out for their usual 10 days or so of skiing, they end up paying roughly $57.60 p/day.

·         They have invested/committed to a ski trip for next season

·         They have a built-in incentive to bring friends along…

·         They help fill empty rooms, vacant resort outlets, make retail purchases

·         and spend money they might not have spent otherwise!?!

Great to see another ski resort  grasping the current economic climate and what’s in the best interest of its loyal customer base, its staff and the bottom line. Way to go!

Is it really that brilliant?:

Yes. A friend of mine from Atlanta, Georgia has been taking annual ski trips, with eight of his friends, for the past fifteen years. Until last season, they always visited a different ski hill each year, stayed two weeks and skied ten days out of the fourteen.

Then came along the Epic Ski Pass offered by Vail Resorts. A full season pass for under $640.oo dollars, good at four different mountains, including Heavenly, California. They bought them and that’s where they went this past season. One day during the trip, the lift-lines were long. They put their heads together and considering the money they had saved on the passes, they hired two private instructors to “cut” lift-lines.

When I spoke with my friend again this week, they had already purchased the same pass for next season. $599.oo, unlimited, unrestricted, full season pass. Pick your dates, pick your times. Brilliant. They’re planning on taking two trips next season, one to Colorado and the other to ski Heavenly.

So if a ski hill has a single day window ticket price of $80.oo (x) 10 days (x) say a 15,000 person local population base, they could realize $12,000,000.oo in guaranteed revenue up front at $800.oo p/pass. That’s TWELVE MILLION DOLLARS!!! Times 20,000 riders = $16,000,000.oo. Times 30,000 riders = $24,000,000.oo.

And just think how far that would go toward “good-will” with your loyal customer base, both locally and beyond!?!

Hope it comes to a ski hill near you, someday soon.

Tim Flanagan

SkiProphet.Com, LLC.

Box 370

Teton Village, Wyoming

83025