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July 2007

Blue Pages :: July 2007

NSP STEPS UP... BIG NAME CHANGE FOR WHITEFISH RESORT... A NEW LOOK FOR OLD MEDIA... PERSONAL VIDEO: THE NEW KILLER APP... BETTING AGAINST THE WEATHER... SUNDAY SYMBOLISM... SHORTSWINGS

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NSP STEPS UP TO THE PLATE
The selection of Tim White as the new director of the National Ski Patrol (NSP) suggests the organization has a new sense of direction after nearly two years of turmoil and uncertainty. The organization is determined to put the ruckus behind it and move forward in coordination with the areas where its members serve.

As the former NSAA education director, White’s experience with safety education, risk management and operations give NSP more insight into the workings of its partner areas. “In each category I bring something that can be useful to the organization,” he says.

For those who missed the news, a dissident group of NSP members has forced changes in NSP’s leadership, including the departure of longtime executive director Stephen Over in 2006 and subsequent changes in the NSP board’s membership. Board chairman Jim DeWeerd resigned this spring, after just one year in the post, to be replaced by Terry LaLiberte.

LaLiberte told SAM that the board is excited about starting a new safety campaign in conjunction with NSAA. The objectives will be to “increase safety and reduce liability,” he says. “We look forward to rebuilding our programs and what new programs we might want to implement in the next few years.”

While it’s too early to know exactly what direction NSP will take—White officially began his new job on June 18—it’s a good bet that NSP will seek to raise its profile and improve ties with individual areas and NSAA itself. And that can only be good for both organizations.


BIG NAME CHANGE FOR WHITEFISH RESORT
Whitefish Mountain Resort, formerly known as Big Mountain Resort, announced its recent name change with the longest headline in press release history: “Big Mountain Resort Clarifies Its Identity with Change of Name to Whitefish Mountain Resort to Better Communicate Its Position Among Ski Resorts.”

In short, the area has decided to embrace the nearby town and its distinctive name, to become less generic than “Big” was (for the record, Big Mountain is the mountain’s given name). But really, was it so bad to be positioned as a “big” ski mountain? Is a “Whitefish” better? We don’t know, so we’ll take the resort’s word for it—for now.


A NEW LOOK FOR OLD MEDIA
Ski and Skiing magazines have seen their paid circulations drop by half. Major powers Time Inc. and Primedia have spun off the divisions that included the major mags: Ski, Skiing, and Transworld Snowboarding went to Bonnier Publishing and its U.S. partner, World Publications; Powder and Snowboarder went to newstand distributor Source Interlink. So why bring more titles to a crowded market?

First, there’s Snow, the new World Publications magazine for the upscale resort lifestyle, a stablemate of Ski and Skiing. It’s rationale? “Snow stands apart from the sport-centric or resort-specific titles by focusing on the high-end alpine experience,” says Carole-Ann Hayes, group publisher for World’s lifestyle titles. The magazine claims it will give readers a personal connection to premium ski and snowsports gear and “luxurious snow-sports adventures.”

That personal connection is also very much the goal of First Tracks Publishing, which has strong regional titles in Big Sky Journal and Tahoe Quarterly and is launching the new Wasatch Journal this month (headed by longtime ski journalist Bill Kerig). First Tracks interprets the concept of “special interest” as narrowly as possible, to more fully align with its readers’ interests. Other regional titles will pop up in other markets, too, if First Tracks CEO Doug Swanson has his way. And being regional, his titles may be better able to make that personal connection that readers want.

These are not your father’s ski rags—or your kids snowboard zines, either. Many ski towns themselves have grown beyond skiing, and like them, these new magazines embrace the entire mountain lifestyle, in its most opulent sense. The high end demo these mags target skews older; these are old media consumers who enjoy the tactile and visual pleasure of a beautiful, well-written magazine on glossy paper.


PERSONAL VIDEO: THE NEW KILLER APP
Yes, MySpace is way cool, and if you’re not on Facebook you simply don’t exist for a large (and growing) segment of the population. But YouTube and its imitators are where it’s at. Video is going to become much, much bigger in the next few years. Starting with the next one. Video, and video on demand (VOD), will become a key element in the promotional mix. Are resorts paying attention?

Perhaps not enough. At the NSAA show in Palm Springs, the enthusiastic folks from the recently announced Ski Channel were surprised they didn’t receive more attention. From their experience in the tennis industry, they know what an impact TV can have. And since they plan to present as much original content as possible, resorts have the opportunity to tell their story through The Ski Channel’s VOD format. If you don’t have the capability to do that, it’s time you acquired it.

But it’s not just the local cable system that will be delivering video. Technology is moving fast enough to bring moving pictures to people anywhere, anytime. The iPhone and other hand-held devices will provide video access everywhere. Will real-time video of a 16-inch dump inspire skiers and riders to drop what they are doing and head to the hills? Count on it.


BETTING AGAINST THE WEATHER
OK, this may be a coincidence, but with global warming becoming widely accepted as fact, the ski industry is being offered weather derivatives as a hedge against adverse weather events. Question is, are they worth it?

Depends on how much you value peace of mind. Steve Seel of the Horizon Weather Group says that derivatives help level out revenue, regardless of what the weather does. In short, they provide greater certainty. And they can be customized to address just those risks that are most worrisome. For instance, resorts can buy a derivative that relates to a specific time period, like the Christmas-New Year’s holiday, or for certain types of weather events, such as rain and high temperatures. Another example: if snowfall is more than 25 percent below normal, say, a derivative might call for the resort to receive a certain payment. More than 30 percent, the payment increases. In that sense, areas can structure a derivative to suit precisely to conditions and terms they worry about. “You want to match up the weather event and the amount of the loss,” he says.

Storm Exchange answers the question a little differently. Storm offers resorts a free trial of its research and analytical tools regarding temperature, wind, snow/rain, and other factors that measurably affect skier visits. This includes historical analysis and real-time tracking. Resorts can see the accumulation of negative events over a period of time and visualize what that means for their business. Areas can then decide whether the hedge is worth it.

This model is particularly suited to regional operators with large drive markets, says Storm CEO Dennis Reaves, especially those subject to volatile weather. The economics of derivatives makes them especially viable for areas with at least $10 million in revenues, and Storm’s David Riker says the company saw a lot of interest from medium-sized areas at the NSAA convention. We’re beginning to see why.


SUNDAY SYMBOLISM
The recent sale of Sugarloaf and Sunday River symbolically completes the dismantling of American Skiing Company; Sunday River was the foundation of Les Otten’s bid to become a dominant player in the ski business, and only the legally entangled Canyons resort remains of the once-mighty ASC empire. But the sale also reflects the rise of tax-advantaged REITs as a force to be reckoned with. CNL, the REIT that owns several other areas, is the capital partner behind Boyne’s purchase of the resorts. We see this trend continuing—and likely accelerating.


SHORTSWINGS
Eco-friendly news from Whistler: to help make the 2010 Olympics the most sustainable ever, some Alpine courses are being moved to protect the habitat of the small-tailed frog ... How much is in a name?? Whistler-Blackcomb is soliciting bids for naming rights to the ambitious, $50 million peak-to-peak gondola in an effort to help defray costs ... Just desserts? The two arsonists who torched Vail’s Two Elk Lodge and other mountaintop property were sentenced to 10 to 13 years.