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« Previous Story | The Industry Report Home Page | Next Story » XC's Future: 'It's Not The Snow, It's How It's Marketed,' Says WieselBy Craig Altschul  "I'd bet we'll see major growth again soon," Wiesel told The Industry Report in an exclusive, in-depth interview from his home in Colorado. "I think the real caveat isn't snow, because great trails only need six compacted inches for skiing, but instead, how smart we can be at marketing a really good, diverse product." Who does Wiesel think ought to be the targeting of this marketing effort? "If we're going to grow, the Nordic business has to cultivate women's markets. They're the primary decision makers for vacations and very often for equipment purchases. "Women are around 50 percent of the total Nordic market, but 60 percent or more of the visitors to cross-country areas. About the only thing the industry does to draw them to the sport is produce some women-specific equipment. We could target them in terms of events, programs, staff, photography, facilities, and so on. "I believe that, with the right marketing, we could double the numbers of women skiers within three years - and that's maybe a very conservative figure," he said. The other factor is, of course, the exposure Nordic skiing will have with the 2010 Olympics. "If the Nordic industry is smart and foresighted, we can benefit from the Vancouver 2010 Olympics - but we didn't do that when the 2002 Olympics were held in Utah, so I'm not optimistic," he said. Wiesel is a veteran of the XC scene. He was a founder and operator of California's Royal Gorge Ski Resort, the largest privately held Nordic area in the world. He created Nordic Group International, a company specializing in trail development and planning. He is a founder and Director Emeritus of Cross-country Ski Areas Association. He's written more than 600 print and online articles and is the author of Cross-Country Ski Getaways: A Guide To Great Resorts, Lodges, and Groomed Trails in North America. The latest version of the book, released last fall, is available online. The book received extraordinarily favorable critical reviews. Wiesel says the growth years for the sport in numbers of Nordic skiers, areas, and ski sales were from the early 1970s through the early '90s. "There aren't as many XC areas as there were a decade ago, especially in southern New England, but there are a few new operations every year, mostly in the West. That growth is going to continue because the XC operations are affiliated with year-round businesses, especially guest ranches and real estate developments." He says there is no evidence yet that the tanked economy is benefitting the sport, but "there are two things people don't want to give up - whatever the economy: recreation and alcoholic beverages. They're both escapes from the stress of everyday life. "I'd guess that a lot of alpine skiers will take up cross-country while still doing as much downhill as they can afford. I also think we'll see a big jump in the popularity of snowshoeing." The IR asked Wiesel to check around and test the mood of area operators and manufacturers. "I talked with Chris Frado, president of Cross-country Ski Areas Association. She says that the mood of area operators is cautiously optimistic, feeling that snow will keep them in business rather than the economy. "Peter Ashley, vice president of Fischer's Nordic division, told me retailers are really nervous. Reorders are OK, with more small orders, since they're wary of excess inventory. The racing side is good and so far in recreation sales, the adage that snow trumps the economy holds. Suppliers are still nervous and in 'wait-and-see' mode." Some of the attractive options for families and others visiting alpine resorts are cross-country trails on top of mountains where the views are to die for, but the altitude is high enough to make that threat real. We asked Wiesel about that alpine-Nordic partnership. "It's a mixed bag. There aren't significant changes in the numbers of alpine XC affiliates, but some areas such as Sun Peaks in B.C. and Bretton Woods in N.H. are making their operations more sophisticated. Others seem to be supporting nearby XC areas more, from funding to marketing. At the same time, several resorts have shrunk their XC trail systems or facilities. "Proposed new resorts - like Garibaldi at Squamish in B.C., and Bitterroot in Montana - seem pretty serious about adding significant Nordic areas. I'd say this trend is a given. "'Top of the Mountain' operations tend to evolve when there's not enough land at the base, For example, Northstar moved their Nordic operation up the mountain when real estate consumed the XC trails. Yes, altitude at Beaver Creek can be an issue (or at any place that's above maybe 9,000 feet)." The subject of European interest in Nordic skiing, compared to that in the U.S. came up. Wiesel asked Fischer's Ashley about that. "Up until two years ago, Europe was really crazy, Nordic Walking and a general increase in fitness led to XC skiing increases, especially in middle Europe. The Russian economy also was very helpful. Then came the winter of 2006-07 and the bottom fell out in middle Europe. The next year it was a bit better in Germany, but most of Scandinavia had no winter. "Now the financial issues are hurting business in Russia, Nordic Walking interest is declining, and with that maybe the interest in XC. The Southern Alps are in good shape as well as Scandinavia, but now you have the economy. You almost have to have a perfect storm to get the sales up to where they were a couple of years ago and I don't see that happening," Ashley said. How about other markets? "I fearlessly predict China is going to become a Nordic power within five years - not on the competitive side but definitely in terms of skier numbers and equipment sales," Wiesel told us. There are a number of other on-snow programs and Wiesel assessed the state of some of those. "I'd guess that snowshoeing will have a banner year because of December snow, ease of learning, great equipment, and the economy. Skijoring will probably stay solid, but operators have legitimate concerns about liability with dogs running free, leashed, harnessed, whatever. Telemarking is anybody's guess. A lot takes place at alpine resorts, so it may take a hit with the economy - but then a lot of telemarkers are locals, so maybe not. "Jumping and biathlon remain marginal in the U.S. (not the case in Europe, but we don't have that history). The U.S. team just might have the best winter ever, with some very strong athletes in both men's and women's XC and especially in Nordic Combined. One of the joys that has long been part of cross-country skiing are the warm and cozy inns that have become part of the sport's environment. "Inns in the Northeast seem to be doing pretty well," Wiesel told the IR. Trapp Family Lodge in Stowe, Vt., is a trend-setter - and they've invested in snowmaking. Places like Woodstock, Mountain Top, Blueberry Hill, Vt., and Garnet Hill, N.Y., are such great operations they can do good business with even marginal snow. "I'd predict that lodges in the Midwest, such as in Minnesota's Gunflint area, are going to have a great year. Some guest ranches in the Rockies will do very well, but others may be getting on the pricey side." Wiesel said there is a "changing of the guard" among Nordic operators. "It's a very hard way to make a living, and the founding generation (from the 1970s and '80s) is getting old and tired - so we'll see a few more areas sold or disappear in the next few years. The good news is their successors are often better financed and better businesspeople, though, in my personal opinion, perhaps not as innovative or crazy-fun to work with." What It Means: The opportunity for the cross-country segment of the industry to capitalize on the Olympics and focus a serious marketing effort at women is certainly there for the taking. Yet, this segment has steadfastly lacked the leadership, determination, cohesiveness, and resources to tackle a marketing effort of true magnitude that could lead to real results. Maybe this is the time. « Previous Story | The Industry Report Home Page | Next Story » Comments
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Posted by: Roger Lohr XCSkiResorts.com | January 26, 2009 11:43 AM
