For years the ski industry has been hearing that the cost of skiing is getting too high. Ski areas have responded with explanations that sounded great, but did not really address the issue. As an industry, we recognize cost as a growing problem, but have been unable to offer any meaningful solution other than an occasional promotional quick fix.
The fact is, operating costs continue to rise and in turn drive up the cost of doing business. Add to that increased market demand for capital improvements such as upgraded high-tech lifts, snowmaking and other on-mountain amenities; industry competition dictating more promotion and rising expectations of customer service requiring more training and staff. It’s difficult to satisfy all the demands of our business and still achieve a reasonable return on risk, while at the same time worry about the impact of the economy and weather on business.
Part of the solution is in understanding that we are no longer dealing with a homogeneous market. So, as in most industries, it has become necessary to give people options by developing a broader range of products to better meet individual needs and fit time priorities.
After much deliberation, the management of Winter Park, Colo., decided to develop a program to give skiers an array of options. Introduced for the 1991-92 ski season, this multi-tiered program known as “Preference Pricing,” offered skiers a choice of five lift tickets from $3 to $34. (Next season, the price range will be from $3 to $36.) The concept is not revolutionary, but follows the basic marketing rule of giving customers what they want and meeting the needs of more people.
The layout of the Winter Park and Mary Jane mountains enabled us to develop ticket options for individuals who want flexibility in the terrain they use and the length of time they use it, while keeping lower ticket costs in mind. Three of the five lift tickets available through Preference Pricing directly address this market segment.
The program starts with the $3 Galloping Goose lift ticket, servicing the beginner lift at the Mary Jane base, which is ideal for beginners and families with young children who want to ski together. During the past season, usage of the “Goose” was actually much more popular than the previous 10 years when it was free.
The next ticket level is the cornerstone of Preference Pricing, the Mini-Mountain ticket. For $15 ($10 for children 6 to 16), skiers can ride on five lower lifts that serve 22 trails on nearly 200 acres and covers beginner, intermediate and advanced terrain. It was designed for skiers who have limited time, money or interest.
The next step was the $22 all-mountain, all-lifts A.M./P.M. ticket. Winter Park’s close proximity to Denver’s Stapleton Airport makes the A.M. half-day ticket appealing to destination travelers who would like to get in a few extra runs before an afternoon departure, but don’t want to pay for an all-day ticket. To utilize the A.M. option, skiers purchase a full-day ticket in the morning and return it to the ticket office by 12:15 p.m. for a half-day refund. Again, it is attractive for skiers with limited time, money or interest.
From the A.M./P.M. ticket we jumped to the standard multiple day/advanced sale all-lift adult ticket at $28. The majority of our ticket sales come from the $28 ticket, available to anyone purchasing a two- or more-day ticket at the resort, or at more than 400 outlets along the Denver/Front Range.
The final part of Preference Pricing was the conventional full-fare, all-lift, all-day adult ticket sold for $34, which included unlimited daytime ski check.
Preference Pricing was fairly easy to implement. Operationally, a few new identifiable tickets are required, added signage at lift corrals and a few extra ticket checkers. The key element for implementation is a geographical ski area layout that determines if this type of ticket packaging is possible. Lower mountain lifts that access a variety of terrain is essential for such a program to work.
In the area of marketing, preference Pricing was the focal point of our 1991-92 advertising, public relations and sales campaigns that included billboards, print and broadcasting advertisements, as well as several flyers and brochures. A majority of our advertising was centered around the theme “Pick Your Price at Winter Park.” The program was heavily marketed to beginners, families and groups from the Denver/Front Range area, but the out-of-state destination market also responded favorably. From a media standpoint, press releases were sent as early as May 1991, and the program was a major focus in public relations activities and events throughout the season.
In its first season, more than 20,000 of the $3 Galloping Goose and $15 Mini-Mountain tickets were sold, amounting to roughly 2.3 percent of total lift ticket sales. All the other lift tickets offered in the Preference Pricing program are standard at most areas. The success lies in: 1) demonstrating to customers that ski areas are listening and doing something about the rising cost of skiing, 2) skiers, like all consumers, feel better when they perceive that what they are buying is not what we choose to sell them, but what they choose to buy and 3) Winter Park skiers knew about Preference Pricing and felt good about it, but only those who needed it bought it.
As part of the “under pricing” concept, Winter Park had also carried a range of pricing options throughout our ski school operations and on-mountain food service. Additionally, many local lodging properties try to offer similar options in their packaging. For the 1992-93 ski season, Winter Park will continue its commitment to affordable skiing by offering pricing options on a variety of ski area products.
