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INDUSTRY EVENTS NSAA 2006 NATIONAL TRADE SHOW AND CONVENTION From May 22-25, 2006, the winter resort industry headed south for a little R&R, networking and learning at the NSAA National Trade Show and Convention on Marco Island, Fla. About 476 ski area attendees representing 129 ski areas were in attendance and 403 supplier personnel from 125 supplier companies covered the trade show side. The beach was the perfect backdrop for another successful industry gathering. Below are wrap-ups of several sessions plus a host of photographs from the show.State of the Industry RRC’s Nolan Rosall, David Belin and Nate Fristoe delved into the specifics behind the record 58.8 million visits recorded in 2005-06. The big number results from fewer people skiing and riding more often: the number of individuals who skied or rode dropped from 10.5 million to 10.3 million, as David Belin of RRC noted in a later session. The quick explanation for all this: day and early-season visits both fueled the growth (most of the increase in visits occurred by Dec. 19), fed in part by inexpensive season’s passes. Regionally, the Rocky Mountains had their best year ever. It was second-best for the Southeast (stretching from Pennsylvania and New Jersey to the Carolinas and Alabama). Both the Pacific West and Midwest also had top-five seasons, while the Northeast struggled. Day visits were up strongest in both the Pacific West (21 percent) and Rockies (13 percent). Destinations visits were relatively flat, up just 1.5 percent in the Rockies, for example. The year’s data also show increases in youth participation and strength in small and midsized resort visits. Although visitors age 18 and up provide 72 percent of the visit total, the majority of visitors in the Midwest are under 18. At the smallest areas, this youth group includes more than 60 percent of total visits. Thanks to the continuing spread of discount passes, ticket yield slipped to 53 percent, and to just 49 percent in the Rockies. Passholders accounted for 30 percent of visits, up slightly from 29 percent the prior year. One warning sign is a shrinking of the core market, as defined in the Model for Growth. Beginners comprise 11 percent of the total skier/rider population, core members 61 percent, and revivals, 28 percent. This may indicate that Boomers are beginning to retire from the scene, which lends urgency to the Growth Initiative. Key Drivers of Growth David Belin presented this session, essentially part two of the “state of the industry.” He defined success with four measures: growth in skier visits, revenue, and EBITDA, and a high “net promoter” score—the difference between the percentage of visitors who enthusiastically tout your resort and those who damn your stinking dump. In a survey of 25 top-performing areas, Belin identified the attributes that led to the greatest positive returns: • high beginner conversion rates • exemplary employee service—in which empowered staff solve problems quickly • high revenues and low expenses per visit—top areas have increased revenues while controlling expenses; they average $10 more in revenue, but just $1 more in expenses, per visit • a relatively high capital spending ratio—for top areas, it’s 9.7 percent, for others, 7.3 • “good profit/bad profit”—good profits come from services that reinforce the customer relationship, bad from a short-term gain that alienates customers, such as charging full price for limited terrain or high prices for mediocre food • net promoter score RRC derived the net promoter score from the NSAA Demographic Survey, which asks, “how likely are you to recommend this area to a friend?” The net promoter score equals the percentage of those who are very likely to do so, less those unhappy campers who are very unlikely to say anything nice. Top areas have an average net score of 78; all others average 51. The three aspects of operations that most affect the net promoter score are slope grooming, overall perceived value, and food and beverage—the last being the area of greatest disparity between top areas and all others. Why focus on these metrics? Because, Belin noted, the Model for Growth suggests that “the current growth vector is not sustainable.” Among the challenges: the number of beginners fell slightly this past season, and conversion remains stuck at 16 percent. The percentage of core skiers and riders who remain in the core has slipped, from 80 percent seven years ago to 72 percent this past season. The growth in visits in 2005-06 simply stems from fewer core visitors skiing and riding more often. Areas must find ways to attract more newbies, retain the aging Boomers, appeal to women ages 30 to 40, and continue to improve trial and retention rates, Belin warned. The Transformative Future of the Boomers Brent Green described how Boomers, accustomed to getting their way and refusing to accept the idea of aging, are transforming both themselves and the concept of “old age.” He pointed out that Boomers are no longer striving to become themselves, they are instead “self-actualizing”—being themselves. And many are self-actualizing through experiences. Skiing can remain a strong draw because, for Boomers, it’s all about young love, living life fully, adventure, personal fulfillment. And those are all elements of how Boomers view themselves: 55 percent describe themselves as “adventurous.” Boomers don’t see themselves as aging; 69 percent say they are “beginning a new chapter.” They plan to rock into the future. A whopping 82 percent are looking for a healthy lifestyle. While perhaps a quarter of the overall population has “LOHAS” values (lifestyles of health and sustainability, defined by organic food, environmental conservation, and exercise), one-third of Boomers profess these values, and they have about $350 billion in spending potential. However, only 16 percent of Boomers are satisfied with their energy level. Green noted that the disparity between dream and reality is a marketing opportunity for resorts. Slopes, Facilities, and Events: Changing to Meet Customer Demand Rod Kessler of Stowe led this panel discussion. Jack Turner of Snow Monsters focused on appealing to kids, primarily by being creative with inexpensive and unexpected facilities. “Be creative,” he said, by providing snow caves, tunnels, arches, banners, flags and other means to entertain kids and “animate” kids zones. Small places and pieces serve this purpose well. If you can’t invent ideas yourself, he urged, “copy it. Or steal it.” Jeff Wise of Stowe described how the area is recontouring trails to create a family-friendly mountain at the new Spruce Peak, and developing collateral, displays and signs to communicate that message. The signage is sometimes very big and unusual and even cool, if that’s possible. “It’s just a better way of telling guests how to use the area,” said Kessler. Events and programming further reinforce the “zoning” of Stowe into family, terrain park, intermediate, and advanced areas. Keystone general manager Chuck Tolton described how the area has rebranded itself in the past few years. The resort determined what its talking points would be, then developed the facilities, operational capabilities, and marketing to support them. A new park, snowcat tours, and expanded events program in River Run village has helped each serve its niche better. One benefit has been that the operations and marketing staffs more clearly understand and appreciate each other’s roles and work together more smoothly. Northstar is attempting a seeming contradiction: controlling the theming of individual streets in its new village (cutting-edge youth on one street, family fare on another) and the types of retailers to create diversity and reduce competition, while also allowing individual shops to have their own identity. As a result, the village juxtaposes $7 burritos with $200 a plate fine dining just steps away. The overall aim is to broaden the area’s appeal beyond its traditional family focus. What’s New with Teens? Michael Woods of Teen Research Unlimited (TRU) did his best to clue in the clueless. While this group has plateaued at around 33 million and will remain at that level for several years, he pointed out, their evolving and defining characteristics include pragmatism, a taste for achievement and leadership, a positive view of diversity, and increasing savvy. Think John-Boy Walton rather than James Dean. These characteristics are expressed in several themes of importance to resorts. First, teens are maturing even faster than previous generations; Woods called them “maturiteens.” They have wide exposure to sex, drugs, violence, and other temptations, yet vice is in decline. That’s because they are also good kids—they enjoy family activities and know how to balance individualism with staying more or less within the rules. This is not a counter-culture generation. Their lives increasingly play out online. As “virtual intimates,” a third have cyber friends whom they have never met. Four in ten maintain online profiles. Successful marketers can enlist this generation to connect them to friends: 35 percent have discovered new brands on community sites like Myspace, where favorite companies pop up as friends. What could be cooler than to have a teen list you as a fave? They are also the “Re-Generation.” That is, if you screw up in life, you can, as with your computer, simply hit the reset button. They forgive missteps easily. Bill Clinton and Martha Stewart are the poster children for this. But the same leniency applies to brands: if you make a mistake with product or pricing, teens today will flock back as soon as you correct the problem. So think different and join the game. “The biggest brand mistake is not taking chances,” said Woods. Growing your business through marketing and programs for women moderated, by Lisa Johnson, CEO Reach Women This session covered some of the successful programs on offer at resorts, such as "Monday's for Mom" where mothers meet up with other like-minded moms and ski and socialize. Blogs and chat rooms are great ways to get the message out on such gatherings. This session also pointed out that some simple moves, such as table cloths and flowers on the table, make the resort more inviting for women. First-time guests should also be treated like gold as they are the decision makers in the family and their "experience" will determine future family visits. Other low key activities such as snowshoeing should be on offer as Mom is not always up to the challenge of skiing. Shallow Labor Pool: A Look at Resort Hiring of International Employees Scoot Horn, Jackson Hole; Joel Anderson, J.D> Anderson & Associates; Rafael Espinoza, U.S.E. This informative session covered the pros and cons of using international employees at resorts. First up in the discussion was the difference between J-1 visas and H2B visas. In a nutshell, J-1s are used for students and are good for 3 to 4 months. Largely, the students themselves pay for the process and come equipped with the visa. An H2B visa is different in that it is good for up to one year and the resort itself is responsible for acquiring and paying for the documents for these specialized workers needed on a one-time basis, on an intermittent need, a peakload need or a seasonal need. Most resorts reported that the international worker program has been very successful on several levels, First, internationals generally work very hard and are very enthusiastic about their jobs. Resorts report that the international flair is appealing to guests, as well. Some of the problems reported were students leaving early, housing and transportation. What was clear from the session is that the pool of international workers is there and with a shortage in the U.S., it will become more de rigueur to look beyond our borders for labor. A Staff Report
Photos by Olivia Rowan, Rick Kahl, Jennifer Rowan and special thanks to Sara and Dyke Shaw of Mellonhead Photo for their contributions.
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EVENTS WRAPUP 
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