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Is There A Silver Lining, Old Chap?

By Craig Altschul
January 11, 2008

The Industry Report's Roger Leo says this seems to mean there will be some gold mining in "them thar hills" across the USA.

"Just look at the flip side," says Leo, OnTheSnow.com's New England Editor. "Europeans, Canadians, Australians, South Americans, and visitors from other parts of the globe are finding their way to America to play in our snow.

"The Colonies are experiencing fantastic snow conditions this winter so far. That adds an additional allure to a U.S. winter vacation. Last year's season was inconsistent in Europe. All these factors come into play when they see the type of snow conditions we have here and how relatively inexpensive it is for them to visit."

The euro was worth $1.30 last January. It's hovering around $1.47 this month. Here's another way to look at it: The dollar is down roughly 13 percent against the euro over the last year, somewhat less against the pound, and somewhat more against the Canadian dollar. But it's evidently enough to bring down the cost of a 10-day ski vacation to, say Utah, by $300 or more.

The Park City area is absolutely seeing a solid bounce from the dollar's decline. International visits to this Wasatch bevy of mountain resorts (Park City Mountain Resort, Deer Valley, and The Canyons) are up 30 percent this season to date, from a rise of 16 percent last winter.

"This (the dollar decline) has been a big impact for us in any major market where we're promoting Park City as a destination. We sell our Three Resort International Pass only to international visitors," Patton Murray, International Sales and Marketing Manager for Park City Chamber and Visitors Bureau, told The Industry Report.

"We heavily promote this pass in seven different countries, including the UK, Canada, Mexico, Argentina, Brazil, Australia, and Germany. That's where we're noticing the effect of the dollar's devaluation."

Murray told Leo the dollar's devaluation is a key factor. A 10-night package of air, ground transfers, lodging, and breakfast runs $2,000 to $2,500 for people from the UK, he said.

It means more than just lift ticket revenue, too. He said people from the UK and Germany want a deal, so they'll buy the Three Resort Pass, but visitors from Mexico and South America are not as concerned with the price of lift tickets, and are more willing to pay full price for day tickets at the window.

Meanwhile, at the resorts carrying the very high cachet of Vail, in Colorado, the weak dollar also has resulted in stronger international business, both in more visits and in higher revenues.

"The relative value of the dollar has strengthened our European visits from our top markets, and has created a similar phenomenon in Canada where, for the first time in decades, the Canadian dollar is on par with the U.S. dollar," Vail Resorts' Kristen Petitt told Leo.

"Ten to 12 percent of our total destination visits are international, and we're seeing volume and market share increase," she said. "We're also seeing a revenue increase from our international visits, because the foreign markets are paying more on par with domestic markets."

Petitt said Vail Resorts used to have programs called On Par to stay competitive with north-of-the-border resorts and to entice Canadians to come here. She says they no longer have to use discounts as the lure.

"International visitors are also upgrading vacation packages in skiing, dining, and especially retail, because their money's stronger. People are literally coming with empty suitcases to fill them up for the trip home (think ski gear and electronics). That's good news for our communities, not just for our resorts."

The UK is the top international market for Vail Resorts. United Airlines will begin nonstop air service from London to Denver in March. That's in addition to British Airways flights, and speaks to the demand. There's also a new low-cost carrier in the UK called Zoom, based in London, which is starting nonstop service from Gatwick to Denver.

Things look bloody good in the original Colonies, too.

"Most of the Brits are not adventurous in terms of the way Americans will plan their vacations, get out the road maps and travel guides, and plan an adventure," says Bonnie MacPherson of Vermont's Okemo Mountain Resort, where they are testing the UK waters. "They'll go to a tour operator and look at pre-planned trips where everything's set up, first night here, second night there, and so forth. The key for a resort is to get listed with the tour operators."

The Brits get lots of vacation time, and extended vacations, she told Leo, so they'll come for seven days, fly into Boston, and go through New England. She notes there are tour operators for different kinds of travelers, such as kids, families, and singles.

"Anecdotally, we're hearing there's a lot more interest from all international markets in skiing here. Canada's certainly an easy one for us, and there are more Canadians here than there have been in past years. The word is they're eager to get here.

"Europeans also like the way Americans queue up," she laughed. Any reader who's waited for a lift in the Alps can relate to that one.

They may have to hang some lanterns in the belfry at Sunday River in Maine to alert the citizenry "the British are coming."

Alex Kaufman told Leo "our strongest European market is out of the UK, head and shoulders above any other, but we do get some visitors from other parts of the world. The larger group trips are mostly all from the UK.

"Our other international segment is the Maritime Provinces of Canada. The weak dollar has an impact on us, much more for the Acadian traveler, since they can operate on a shorter turnaround, and can react quicker than Europeans as the dollar changes one way or the other."

He said that the U.S. dollar vs. the euro can take a season or two to move the needle significantly, because Europeans plan their trips on a longer time frame.

New England is attractive to the Brits, Kaufman says, because they like the lower elevation and don't have to deal with altitude sickness. They like the snow conditions and groomed terrain.

Kaufman echoed the shopping lure. Brit plastic is a magnet at boutiques in Bethel, factory outlets in North Conway, N.H., and of course, the legendary 24-hour venue of L.L. Bean in Freeport, Maine. All of this "can't pass by" shopping is easily accessible on the trip to or from Boston, or as a break from skiing or riding.

There's an oft-joked-about warning as one steps off the London tube onto terra firma: "Mind The Gap." Right now, it appears the U.S. winter travel segment is not minding it at all.

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