Ski Facilities

Ski Facilities

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate recreation areas used for downhill and cross-country skiing. No major companies dominate the industry. Companies that operate ski lodges and resorts -- facilities with overnight accommodations for guests -- are not included in the industry, but those companies are significant competitors of independent ski facilities. Important ski lodge and resort operators include Alterra Mountain Company, Aspen Skiing Company, Booth Creek, Boyne USA, and Vail Resorts (all based in the US); Compagnie des Alpes (France); and Whistler Blackcomb (Canada).

COMPETITIVE LANDSCAPE

Good snow conditions and personal income drive demand. The profitability of individual companies depends on effective marketing and efficient skiing and business operations. Large companies have advantages in marketing and in sharing resources and staff among multiple skiing sites. Small companies can compete effectively by catering to the local population or providing customized services. The US industry is highly concentrated: the top 50 companies account for over 85% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services at ski facilities are facility use, food and beverage sales, instruction fees, merchandise sales, and equipment rentals. Skiing facility services account for about 70% of revenue. About 10% of revenue comes from meals and beverage services; rental service for recreational, sports, and fitness equipment account for over 5%; and leisure, recreational, and athletic instructional programs account for less than 5%. Other services account for over 10% of revenue.