Ski Industry Trends Report: Growing Visits, Business Expansions & Participation Challenges

2. Ski Areas Pleased with Crowded Slopes • According to the National Ski Areas Association (NSAA), there were more than 59 million skier visits during the 2018–2019 season, which was an 11.3% increase from the 53.3 million during the 2017–2018 season. • Colorado Ski Country USA (CSCUSA) reported a 13% increase (13.8 million visits) during the 2018–2019 season for the 23 resorts that are members of the organization. Vermont had similar positive numbers, or 4.2 million visits, a 5.2% increase. • Ski New Hampshire stated there was a 5% increase in skier visits, to an estimated 2.3 million, including alpine, cross country and tubing, while Utah’s 2018–2019 season registered a spectacular 24% increase, or 5.1 million visitors, an all-time record.

3. Operators’ Business Moves • Peak Resorts, which owns and operates 16 locations, from Missouri to New England in the eastern half of the US, experienced record revenues for its 2019 fiscal year, increasing 40.1%, to a total of $184.4 million. • Vail Resorts, with a total of 18 properties, mostly in Mountain states, but also British Columbia and Australia, reported a total of 14.2 million visitors for the 2018–2019 season, resulting in Q3 2019 fiscal revenues of $957.7 million, a 13.8% increase. • The big news is Vail Resorts and Peak Resorts’ merger agreement, adding Peak’s 17 resorts to Vail Resorts’ portfolio for a total of 37 global ski areas. The deal is awaiting shareholder approval and regulatory review.

4. Fewer People Participating in Snowsports • Despite a record number of skier visits and plenty of snow, Snowsports Industries America (SIA) reported a 3.6% decrease in skiing and a 5.7% decrease in snowboarding participation during the 2017–2018 season (the latest period available). • Although weather and the amount of snow from season to season is always the wild-card factor that drives participation, many resorts and ski areas are promoting multi-mountain passes at low prices that could attract more skiers. • The 2019 Physical Activity Council’s Overview Report on US Participation (and previous years) shows winter sports with the smallest participation rate of the 7 sports measured. The rate has been approximately 7.0% annually during the 2013–2018 period.

5. Winter Sports Enthusiasts Critical to Lodging Industry • Inntopia reported during April 2019 that aggregated actual occupancy for western mountain lodging during the October 2018–March 2019 season increased 5.6% YOY. Because of spring snowfall in many locations, March’s occupancy increased 7.4% YOY. • Although August is a few months before the start of the typical lodging season for snowsports, aggregated bookings made during August for August 2019 through January 2020 decreased 0.8%. • According to Nielsen data, 91% of Americans living in the Northeast are attracted to an all-inclusive ski resort package; however, 74% said the breakeven point for them was an average of $210/night, declining rapidly to a maximum of $500/night.

6. A Good Season Led to Positive Equipment Sales • Although the general retail sector didn’t generate the anticipated revenues during December 2018, US snowsports retail sales increased 7.4% YTD, with the West region generating the most sales, followed by the Northeast. • The NPD Group also reported a 7% increase in winter/snowsports gear sales during the August–December 2018 period, to a total of $4.3 billion. Snowboard equipment fared even better, with a 13% increase. • The snowsports industry is also concerned with the Chinese tariffs. The Outdoor Industry Association (OIA) estimates brands (and their customers) have been burdened with $1.5 billion in additional tariffs during the September 2018–August 2019 period.

7. An In-Depth Look at Winter Sports Enthusiasts • Data from The Media Audit’s 2019 Aggregate Report of 66 US markets, representing more than 143 million US adults, reveals a distinct profile of the 3.2% of those adults who participated in snow skiing/boarding during the past 12 months. • More men than women were participants, or 58.1% and 41.9%, respectively; 65.3% were 44 years of age or younger; 55.6% had incomes of $75,000 or more; and 56.7% had a college or advanced degree. • A media day analysis of skiers/snowboarders found 37.7% spend the most minutes daily watching TV; followed by radio, 27.0%; newspaper, 15.0%; Internet (no email), 11.5%; email, 5.6%; and billboards, 3.1%.

8. Advertising Strategies • Stations in snowsports country often report on current conditions in the local news, but ski areas and snowsports retailers can receive an additional boost by inviting them to post short videos on the station’s Website about their specific conditions and in-store specials. • Suggest ski areas and/or retailers market a “Let Us Take Your Family Skiing” promotion. Ask consumers and customers to enter a contest for a free weekend of snowsports activities for an entire family (of four or five with children). • Include local lodging establishments in snowsports areas on your prospecting list for the winter. It is crucial they maximize bookings at this time of year, so they should be more interested in retail advertising, including ads on your station’s Website.

9. New Media Strategies • With another good snowsports season predicted for winter 2019–2020, suggest that local ski areas designate a guest as the “1,000th” or other number guest of the season, provide him her with a gift package and feature them in one or more videos on social media. • Influencer marketing is an excellent strategy for ski areas and retailers. Invite/Incentivize one or more highly enthusiast guest or customer to become the “official” spokesperson for the season, reporting their experiences, interviewing others and posting all to social media. • Invite one or more local landscape/outdoors photographers to wander the ski area property to capture highly attractive images for use in social media posts. Allow the photographers to market their images on the ski areas’ Website and/or in the lobbies of their lodges.