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INDUSTRY EVENTS 2008 NSAA CONVENTION AND TRADE SHOW The 2008 NSAA Convention and Trade Show in San Francisco May 28-31 was the best of times and the worst of times. Despite a record 60.1 million guest visits in 2007-08, most resorts were sobered by the prospect of $4 (or $5) a gallon gas and its effect on business in 2008-09.Here’s a look at some of the sessions, keynotes, awards and honors. Keynote: The New Mainstream Guy Garcia, author of “The New Mainstream,” described the current state of multicultural America. He summarized it in his description of the “creative class,” the one in four Americans who embrace other cultures, gravitate to dynamic industries and cities, and have high levels of education and income. These are the best customers of the future, and they are mashing, fusing, and blending a new culture in which everyone is included and still an individual, and any persona is possible. How else can you describe a world in which the top rap artist is white, and the best golfer is black, Garcia said. The point: Hispanics (and others) want to be part of the whole, while at the same time recognizing that everyone is, in fact, different. The appropriate metaphor for America is no longer the melting pot, but the blender. The Business of Snowsports Schools Pat Campbell and Jim Kercher, longtime snowsport school heads who now run major resorts, addressed the business of school. In doing so they exposed the conflicting aims of guest service and maximizing profit. They tried to reconcile the conflict from time to time, pointing out ways to pay full-timers adequately and make efficient use of part-timers, but mostly, this session was about profits. The Kottke Report and Business Analysis You’d think that a record 60.1 million visit year would be mostly good news, but RRC’s Nolan Rosall and David Belin found several troubllng data points in this report. First, the good news: the number of visitors increased, to about 11 million, and season passes accounted for a slightly lower percentage of visits, so both paid tickets and ticket revenue rose. And international visits rose 29 percent. The troubling signs: first, international visits increased by about 1 million, and that is what fueled the record visit total. Even with the increase in international visits, though, overnight destination visits declined. Local day trips increased, as did weekend/holiday visits. Another weak spot: lessons. Overall, lessons rose just 2 percent, compared to the 10 percent increase in overall visits, and beginner lessons actually declined. Why Mountain Resort Markets Are Maintaining Their Vigor Here’s how fast things change: the panelists admitted that resort real-estate markets have lost their vigor. Consensus was that average prices are $500/sf to $800/sf in the Northeast, $800/sf to $1,100/sf in Tahoe, and $1,000/sf to $1,300/sf in the Park City area. One panelist referred to the $800 to $1,000 range as the “sweet spot” for sales. But no one can confidently predict how the credit crunch will impact resort sales. More than one panelist warned that the overall housing market will not stabilize until late 2009, while another predicted that credit markets will be unstable through 2011. Model for Growth Update Nate Fristoe of RRC led this session, which described the obstacles that are preventing visits from growing more quickly and the urgency of overcoming those obstacles before the Boomers head for the exits in sizeable numbers. In practical terms, that means a 5 to 7 year window of opportunity. The headwinds: a shrinking core, fewer newbies, stagnant income growth in the general population, and well-known macroeconomic challenges—high gas prices, weak economy, credit crunch. All point to an urgent need to increase beginner trial and conversion. RFID Innovations RFID technology is finding its way into more and more applications, including lift tickets. Before long, the RFID pass will incorporate the functions of a credit or debit card as well. It will be both a tracking device and a convenience card—so convenient, in fact, that customers buy more. But this technology will require heightened security measures to maintain customers’ privacy before guests will fully embrace it. The Rental Revolution This session looked at the new high-efficiency rerntal systems currently offered by Elan and Head. Both systems focus on performance of product and retention of the customer.Peak Resorts, Wachusett and Hidden Valley presented case studies. The message: using set boot sole sizes and DIN settings speeds the rental process, cutting staff needs in half, and improves the customer experience. Priorities of Climate Change U.S. Forest Service Chief, Gail Kimbell adressed three main points: climate change, clean water, and kids. Kimbell aims to restore U.S. forest lands and involve kids in the outdoors, as they are the next generation of constituents. Forests are the second largest carbon sink in the world, the first being the ocean. Restoring old and dying forests, planting trees, etc., increases the resiliency of the forest and helps counter the forces of climate change. Biomass utilization—removing unhealthy trees and burning them to generate electricity—is another goal. “Moving Kids in the Woods” aims to connect kids with the natural world. Ski Resorts are the best partner for this program, Kimbell said, as they have the infrastructure to provide year round outdoor recreation. Sediment Source Control Handbook A newly published draft of the Sediment Control Handbook outlines tested strategies of sediment control and water quality protection. The goal: to give resort managers more tools for understanding their specific situation, allowing for better, more knowledge decisions on how and where to invest. Cases cited: Northstar-at-Tahoe's superpipe was tested using multiple approaches; wood chips were installed at Squaw in hopes that local material could be used without the need to pay for outside sources. Fertile top soil, ideal for sustainable sediment control, was found at many resorts—inches under the surface. During trail construction, topsoil often gets buried. Another goal is to move away from “whistle blowing” and toward providing information on proven techniques. New Developments in Resort Living Access to capital is the first need for resort developers, yet the current availability is slim. New sources of funding mark some of the biggest news in resort development. One current source of funds: private family capital. These types have funds to spend and the investors are at the age where they are looking for opportunities. The Founder Program is also another solid route to take. It is an investment for buyers instead of a real estate purchase. As for projects, slopeside destination properties remain a bright spot. Since they are limited, people want to capitalize on any opportunity. Resorts are selling fractional units to loyal customers who want to continue to invest in where they grew up and where they now live. Reaching out to foreign investors could become a trend, to, as Brits and Russians are buying into Vail and other marquee resorts. For the future, developers see more user-oriented demand, and less rental orientation. The avid customer is looking for the resort's new product or amenity. Green or Greenwash? Create sustainable practices and communicate them to your guest, and you increase the power of your brand, right? Not so fast. A green shopper is well educated, highly critical and has no mercy. They expect you to walk the talk. Therefore, tout your successes, but also admit flaws before being called out. Customers will doubt any and all "green" claims if only one is proven wrong. Don’t just focus on how “sustainable” you are—connect your brand, the customer, and the mountain experience the customer will have. That demonstrates the true importance and value of your green activity to your guests. Snowsports as a Youth Development Tool This session dove into the advantages of hosting an SOS Outreach program. RRC's Nate Fristoe had some compelling numbers to prove the point. For example, 61 percent of the program's participants said they would continue to slide over the next 5 to 10 years. Fifty-two percent have introduced friends, and 34 percent have brought family members on board. When it comes to purchasing, 57 percent of SOS participants purchased apparel within a year of trying the sport, and 19 percent bought equipment. Further studies showed that their long-term conversion rate is 25 percent, well above the national average of 15 percent. Putting Digital Mapping to Work at Your Resort What do you get when you mix a ski patroller with a computer-savvy brain? Brian Brill. Brill's work through his company, Mountain Graphix, brings every inch of a ski area right to a computer screen through GPS, orthophotography and digital elevation models. By inputting this information into specialized software, ski areas can create all types of modeling, which can be used in court cases, in building projects, and in search and rescue, among other things. Brill also showed attendees cheaper ways to do this using Google Earth and recreational GPS devices. For more information, contact Brill at 970-389-0957.
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EVENTS WRAPUP 
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