Browse Our Archives

July 2008

Playing the Value Card

What, us worry? The price of gas doesn't faze ski areas.

Written by Linda Goodspeed | 0 comment

In China the character for “crisis” can mean either chaos or opportunity. In North America, most winter resorts see “opportunity” rather than crisis in rising gas and fuel prices.

“I’m an optimist,” says John Stultz, VP of sales and marketing at Shanty Creek, Mich. “I think higher gas prices are an opportunity for us. All the news reports say people are still going to take vacations, but instead of driving long distances, people are vacationing closer to home. That’s good for us. We’re right on the fringe of a four-hour drive from a lot of major markets.”

There are even a few new words to describe the trend: “home-cation” and “stay-cation.”

“Home-cations bode well for day attractions like us,” agrees Craig Low, sales and marketing director at Camelback/Camelbeach, Pa., an hour and a half drive from Manhattan and an hour and 45 minutes from Philly.

“We’re two hours from Boston,” adds Debbie Moore, marketing director at Waterville Valley, N.H. “Why go farther?” (That’s also the resort’s new marketing slogan.)

“I can’t say we’re happy about high gas prices, but it might actually help us at the expense of farther away resorts,” says Will Riseley, communications coordinator at Stratton, Vt. “We’re one of the closest big resorts to the New York metro area. High gas prices give us an advantage in that respect. People can get up here on one tank of gas.”

What about those farther-away resorts? Not to worry, says Stuart Rempel, senior VP of marketing and sales at Whistler/Blackcomb, B.C. “To a certain extent, as our market has become more and more affluent, the price of gas is less of a concern,” he says.

“We feel we have such a strong product we will get through this cycle,” says Dax Schieffer, communications manager at Big Sky, Mont., which has just signed a deal with Frontier Airlines to provide more nonstop service to the resort—its fourth nonstop airline addition in the last five years.


The Value Card v. the Gas Card
Brand names, affluent customers and stay-cations are only part of the reason ski areas are optimistic in the face of rising fuel prices. Value—something ski resorts have been working on for years—is paying off. Just ask Stultz at Shanty Creek, in the midst of a major turnaround. Millions of dollars in improvements, aggressive pricing and a $30 million state tourism campaign (up from $10 million last year) have left Shanty Creek well positioned to take advantage of the current economic upheaval. “We’ve seen significant increases in our spring business,” he says.

“We’re playing the value card and pricing very aggressively to get people to change their habits. It just happens that is occurring at the same time as economic difficulty, which gives us an additional opportunity. Because of our strategy of using price and value packages to reintroduce a great product, anybody else trying to do the same thing because of high gas prices is playing catch-up. We’re already there.”

Shanty Creek is by no means alone. Many ski resorts are playing the value card. Camelbeach has come out with several money-saving, direct-to-gate passes this summer, as well as a major new family water attraction. “Consumers are looking for values and deals,” Low says.

Boyne, Mich., is also lowering prices and attaching “value adds” to its packages. “The water park and spa packages are doing great, but we’re seeing more reluctance to book golf because of gas prices,” says Erin Ernst, PR manager. “We’re working with our partners to add value to those packages.”

Value-adds include things like a $25 gaming voucher, round trip transportation to a casino, free bucket of range balls, unlimited golf, and $50 Nike vouchers on top of “some of the best golf package prices we’ve ever had.”

Whistler/Blackcomb is hammering home the inherent value of summer offseason rates at the ski resort. Waterville Valley is not only marketing its proximity to Boston, but car-free vacationing once people get there.

“In our surveys, guests say one thing they like about Waterville is being able to park their car and still use all the amenities in the valley,” Moore says. “Everything is truly within walking distance or accessible by trolley or shuttle bus.”

Many resorts are expanding shuttle services for guests and employees, adding hybrid vehicles and biodiesel buses. Some, like Telluride, Breckenridge and Beaver Creek, use their gondolas to transport visitors from parking lots and mountain communities to cut down on car traffic. Stratton is discussing carpool discounts and preferred parking for carpoolers. Colorado Ski Country’s “skipool” campaign over Easter weekend was so successful, communications director Jennifer Rudolph says, it will be repeated on busy weekends this winter.


Rebates: Good, Bad or No Impact?
Not many ski areas are using gas rebates to lure visitors. At press time, Camelbeach was in discussions with a couple of gas retailers about the idea. Powderhorn, Colo., was planning to partner with local radio stations and gas retailers to offer gas cards. Waterville Valley offered a $40 gas voucher to guests booking two nights over Memorial Day weekend. Moore says the promotion boosted business nine percent over the holiday.

But others are not so sure rebates have much impact. The Traverse City, Mich., visitors’ bureau was offering a $25 gas coupon to people booking at least three nights in the area. “I don’t think people will change their entire destination over $25,” says Stultz at nearby Shanty Creek, a beneficiary of the rebate offer. “But they will change their destination choice when they see significant savings for lodging and their entire stay.”

Krista Parry, director of marketing and communication at Park City, Ut., agrees: “The biggest cost of a ski vacation is not gas or even lift tickets; it’s lodging.”

Instead of offering gas incentives this summer, Park City is working with the lodging bureau to offer deep discounts on rooms and marketing its closeness (30 miles) to 80 percent of its summer market in the Salt Lake area. In winter, when 80 percent of its market is destination skiers, Parry says surveys indicate skiers will not change their destination plans because of high transportation costs, but may economize once they get there.

“People are not going to give up their ski vacation,” she declares. “It’s one way they can bond with their families. Their choices when they come here may change. They may stay in a $200 hotel instead of a $500 hotel, eat in a condo one or two nights versus going out. People want options. They want an incredible experience and they want great value.”

Rempel agrees that value is paramount, but warns the zeal to provide value might “commoditize” the experience. “People are looking for an incredible experience, product leadership and great service at a fair price,” he says. “I think people will come from far and wide to experience that. At the same time, however, we have to be very careful as an industry not to commoditize our business and turn it into another Vegas or Disney. We need to talk to people about what it is about the mountain experience that makes us different and a place people have to go to in summer and winter.”


Operations: A Conditioned Response
The focus on value is also a double edged sword when it comes to operations. Resorts offer exceptional value in part because of a high level of grooming, lifts and overall service—which have become ever more costly to provide. But here again, ski resorts prefer to see opportunity in skyrocketing energy prices. More than many other industries, ski resorts are already far ahead in terms of conservation, recycling, sustainability, renewable energy sources, and cutting-edge technology. The current fuel crisis has only deepened that commitment.

“Like most ski areas we are conserving every way we can,” Parry notes. “It’s not just for the savings, but because we want to maintain this lifestyle and experience for generations to come.”

In that context, $4 a gallon for gas seems a small price to pay.