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« Previous Story | The Industry Report Home Page Destination Outlook: 'A Socially Embedded Frugality'By Admin 
Take it a step further: Pam Murphy, senior VP at Mammoth Mountain in the California High Sierra, says people are paying "maniacal attention" to their expenses. Guy Chanel, director of Villars Ski Resort in Switzerland, admits it would have been "suicide" a few years ago for him to ask his partners (hotels, ski lift company, restaurants, ski shops) to offer resort discounts to attract clients, even at low occupancy periods. "They would have seen it as debasing the quality of our offer," he said. "Nowadays, they understand that it is just necessary because every client is getting price-oriented, unlike old times when quality, more than price, was the top priority in the holidays (vacations) buying process." Perry says Aspen has "battened down the hatches. Everyone's running lean. We're going to be hiring fewer seasonal people, start lean, and build up. People learn to operate their business more efficiently during these times. Tough times expose the weak and reward the strong." Is there optimism? Yes, says Tim Mueller, who along with his wife, Diane, operates Crested Butte Mountain Resort in Colorado, as well as Okemo Mountain Resort in Vermont and Mt. Sunapee in New Hampshire. The resorts are owned by CNL, the deep-pocketed Florida-based REIT that has developed a significant footprint in the ski industry the past few years. "My general feeling, assuming the weather is reasonable, is we'll be somewhat similar to last year. Areas closer to the market will be fine, do well, and the more-destination resorts are looking at a rougher row to hoe because of the economy," Mueller told us. 
Murphy said she feels fortunate at Mammoth because of what she called "incredible success with Horizon Air service, which the airline said was one of most successful first-year services they've ever done." Horizon has bumped up air service for this winter to four flights a day from Los Angeles, Mammoth's traditional core market. Southern California remains a drive-to destination, albeit a long drive, "but we think that helped us last year." Innovation and creativity are likely to reign supreme. David Rathbun, president and general manager of Mt. Bachelor in Oregon, told The IR his sometimes weather-challenged destination is adapting a flexible lift ticket pricing system that matches price with terrain. (Think market pricing for fresh fish.) The approach is similar to early and late-season strategies that prevail particularly among drive-to areas as they open terrain in the fall, and close it in spring. The principle is simple: The more lifts and thus terrain, the closer customers pay to full price; the fewer lifts and trails, the greater the discount. The daily ticket price will be determined using an equation that calculates the expected number of lifts to open and daily weather, Rathbun told The IR. Perry says March is the most important month of the year for destination mountain resorts. "My sense is the first half of the winter is going to be difficult, and the second half much better. March last year was terrible," he said. "So we are working hard to put attractive offers out there for families in March. One of the keys to the season will be if we align with the pace of economic recovery." The destination outlook? Mueller said it best: "I'll let you know how winter goes in April." « Previous Story | The Industry Report Home Page |
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