How Do We Ensure a Future for Skiing and Riding?
If one looks hard at the seven biggest threats to skiing and riding in a recent SnowBrains post, you might say, let's put the skis or boards away. I am not so inclined. I think if we, as an industry, put the real issues on the table and make a collective effort to address them unselfishly, there is a brighter future for skiing and riding.
I think all seven threats warrant a comment, but I will provide more than one comment for the last two, which, in my opinion, are the most threatening.
#7 – Regulatory and Policy Challenges – These are more evident and concerning under the current administration in Washington. My thoughts, they won’t be there forever, and I believe that common sense will prevail. This doesn’t mean we take our eye off the ball, especially with the knucklehead idea of selling public land.
#6 – Shifting Demographics and Participation - My ideas on this one have been in place for over twenty years. This could easily be solved by coming together through, say, NSAA, and funding a marketing and educational awareness campaign throughout the country to get more butts in the chairs. This is not a one-shot-and-done campaign; it's an ongoing program designed to get people on the hill over several years.
#5 – Sustainability and Environmental Responsibility – This should be the easiest one. If we act in accordance with what we say about the outdoors, we could remove this one from the list.
#4 – Overcrowding and Congestion – now it gets a little tricky, and this might tie into my comments when we get to number two. Some ski areas are already addressing this issue, and they haven’t taken a financial hit. I am a firm believer in the Comfort Caring Capacity developed by Snow Engineering many years ago. It makes sense to know your actual caring capacity, not just your uphill capacity, and stick to it. When you exceed it, you stop selling tickets. It may seem counterintuitive, but it isn’t. It is about the experience, the total experience. Expansion and creating new ski areas is almost impossible to pencil out to a modest return. Incremental expansion is feasible, but it should be planned comprehensively to ensure optimal results. Simply stated, if I add more skiers, I need to increase the seating capacity, add more bathrooms, and provide additional parking.
#3 – Corporate Influence – I am torn about this one; on the one hand, I don’t think they pose a threat, but on the other hand, I see a threat in some of their actions. Paralyzing your largest resort during the Christmas/New Year's period, over $2.00 per hour for ski patrollers is just stupid. This type of short-term thinking is why this is listed as a threat, and at #3, there must be more concern by the SnowBrains writers than my concern.
#2 - Cost and Affordability - This is a widespread issue, not unique to the ski industry. The existing business model for ski areas, particularly regarding compensation, is unsustainable. While smaller ski areas face compensation challenges, they do not experience the same disparity as mid-size and larger ski areas. Front-line staff and middle managers are crucial, as they are the ones who deliver the experience to guests. Despite significant economic changes over the past 75 years, the ski industry's basic compensation philosophy has remained unchanged and requires revision.
An example from Park City during the Holiday Season illustrates this point. If the VP/CCO had taken a leave of absence during this time, operations would likely have continued smoothly. However, with patrollers on strike, the impact was evident. This top-heavy payroll structure is prevalent in many places, placing a strain on front-line workers who often cannot afford to live near the resort, resulting in long commutes, higher living costs, and, more importantly, isolation from the community where they work.
The question is, what revision is needed for the business model? I know you can’t simply throw more money at the front-line staff and then raise the price points for the guests. There is a need for both short-term adjustments and long-term solutions. Having managed both a small ski area and a mid-sized ski area, I believe there is often overstaffing in mid-sized and larger ski areas. I saw it at ASC when the ski area I was with was part of ASC, especially at the corporate level. I’ll admit things have gotten a bit more complicated, particularly in the cyber world. For the short term, I would advocate for reducing administrative overhead and senior-level bonuses—this isn’t Wall Street—and investing in quality employee housing for full-time staff. Long-term, we need to invest in training programs, collaboratively with other ski areas, to begin developing a more consistent supply of skilled staff. This training would encompass not only technical skills but also leadership and management training. Doing this collectively on a regional basis would make the training for each ski area more affordable, and if done regionally, it wouldn’t require travel and lodging. Having more skilled and effective leadership can raise productivity levels, thereby lessening the payroll burden.
When considering affordability, think about lowering the current high prices for day tickets. If you aim to implement dynamic pricing, similar to airlines, approach it in that manner. Avoid setting rates based solely on speculation about demand, especially when you assume it will be high during the MLK weekend. Additionally, refrain from automatically elevating revenue expectations simply due to inflation. It might seem amusing, but I've encountered scenarios where corporate directives indicate that your EBITDA must increase by X% or your skier days must reach XXX for next year’s budget. If you're pushing for revenue growth, clearly outline how this will happen, supported by specific steps and resources.
#1 Climate Change – I understand that even if all ski areas worldwide became 100% sustainable from a climate perspective, it would not significantly alter the broader issue. The ski area industry is experiencing significant impacts due to climate change. The industry must take the lead in combating climate change. Unfortunately, the science of climate change is often overlooked in Washington, making the struggle much more challenging. From my perspective, the ski industry has a powerful advocate in Auden Schendler of Aspen Snowmass. I hope Alterra Mountain Company follows the lead of one of its founders, the late Jim Crown, who was a pioneer in this cause. Taking small steps can genuinely make a difference. By utilizing the data that ski areas possess regarding the climate impact of their operations and acting to mitigate it, they not only reduce their footprint but also showcase their leadership. As Auden Schendler suggests, ski areas have a significant opportunity to educate their customers on the importance of minimizing climate change effects. Most ski areas have the capability to connect with their clients meaningfully and consistently, encouraging them to engage in the fight to preserve skiing and riding. The good news is that the skiing and riding community in North America is typically more affluent and politically influential, and having them advocate for addressing climate change can be a powerful force for change.
I could continue discussing items 2 and 1, but I've likely upset enough of you already. Reflect on these threats to the sport and industry you cherish and think about how you'll ensure that your children and grandchildren can participate in skiing and riding in the future.