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January 2009

Rentals on the Rise

The economic slowdown could fuel an uptick in rentals.

Written by Linda Goodspeed | 0 comment

When the airlines first announced last spring that they would charge extra for each checked bag, Tapio Niskanen, national sales manager for online reservations at Specialty Sports, the largest network of ski and snowboard rental shops in the West, thought it would be a boon for the rental business.

“It was going to be cheaper to rent brand new gear than bring your own and pay a bag fee,” he says. “There was also the convenience factor. You didn’t have to schlep your bags all over the place.”

But then the economy took a nosedive. Suddenly, what looked like a great opportunity turned flat, as many destinations expect the economy will limit high-end travel. In fact, Niskanen says he will be thrilled if his business ends even with last year. “I’m still hoping for a little bit of growth,” he says. “We’ve had nine years of consecutive growth. But I’d be happy if we could end up flat with last year.”

Just when rentals were finally emerging from their ugly stepsister role, a worldwide economic recession may ruin what could have been their starring moment. Still, the argument for renting remains strong.

One of these is value. “I think there used to be a perception that rentals were older, junky stuff,” Niskanen says. “That is not the case anymore.” Today, rental equipment is often state-of-the-art. It’s colorful, high-performance. It’s better tuned. And the rental process—once agonizingly slow and confusing—has been streamlined and become almost pleasant. In sum, rentals can be cool.

Convenience is another plus. “We’re a driveable resort, but we’re seeing a lot of people rent equipment just for the convenience rather than bringing their own,” says Brian Lawson, PR manager at Crystal Mountain, Mich.


West: Rentals to the Rescue?
Most western resorts are gearing up for an increase in rentals as a result of airline baggage fees. “We’re anticipating a higher than average number of demos and rentals per skier visit and have increased all of our offerings,” says John Duncan, retail operations manager at Alta, Utah.

Other western resorts, like Crested Butte, Colo., are working the airline baggage fee problem from both ends: offering a $30 luggage credit to skiers who bring their gear, and broadening their rental shop and high performance offerings for those who don’t. “We have expanded our rental and retail space greatly this year,” says Todd Walton, PR director. “We expect rentals to increase and have a really high-end rental fleet. We also have a new high-end ski shop. You can show up here in shorts and T-shirt and get really well outfitted.”

For his part, Niskanen is aggressively discounting and advertising more, driving home the convenience and cost savings of renting. But he says there is a limit to what he can do: “We’re a component piece to these vacations. We’re not the main ingredient. We’re working with tour operators, lodges, resorts, to bundle our component with lift tickets and lodging to make these vacations easier.”

At Aspen, rentals were growing “steadily and significantly” long before the bottom fell out of the economy and airlines started à la carte pricing. “More and more guests are seeing the advantages of renting equipment,” says Derek Johnson, managing director of rentals and retail for the Aspen Skiing Co. “We’ve taken that demand and tried to add value to it so even more people will want to rent.” One value: free intermountain transfer of rental equipment, tuned and specially selected for that day’s conditions and terrain. Johnson views the airline situation as a golden opportunity to educate guests even further about the convenience and value of renting.

At the same time, he cautions, shops still need to improve the quality of the renting experience. “Rentals have had a bad rap,” he says. This season, Aspen will offer two new proprietary rental boots, one manufactured in partnership with Salomon, the other with Tecnica.

“Everybody’s got great skis,” Johnson says. “But if you look at rental boots, they’re either black, navy or gray. Frankly, they’re pretty ugly.” The new Aspen rental boots are colorful, with graphics and a big power strap, plush liner and quality footbed. “It looks like a retail boot, but has the wear features of a rental,” Johnson says. “People who come to us now have the best skis, they’ve got free intermountain transfer, and when they’re walking around they’ve got on a boot they feel good about.”

They’ve also got tech support on the hill. New this season, Aspen will send out rental techs (in their own official Aspen jackets) to help renting guests adjust or fix ill-fitting or broken equipment. “We’re not just handing people equipment in the shop, we’re reaffirming them on the hill so they can enjoy the day, especially beginners, so we can turn them into loyal guests,” Johnson says.


East: We Like Rentals, Too
The rental situation in the East and impact of the economy (and airlines) is harder to fathom. Many resorts have reported increases in early season sales and purchases, including hardgoods. Count Wachusett, Mass., among them: “Our retail activity has been amazingly strong,” says Carolyn Stimpson, vice president of resort services.

Stimpson says rental/demo activity has averaged about 40 percent of all skier visits, and she expects similar numbers this season. “Although we like our margins with rentals, we actually encourage people to own their equipment,” she says. “Once they own, they’re real skiers; they’ve bought into the sport.”

Bonnie MacPherson, PR director at Okemo, Vt., also reports strong retail activity. “If the 10-person-deep lines at the Ski Market cash registers all night at the 25th annual Boston Ski Show are any indication of the season ahead, I’d say we have absolutely nothing to worry about.”

Just because hardgoods sales are holding steady, however, does not mean rentals are declining or less important. “Our rental business is definitely growing,” says Jeff Wise, communications manager at Stowe, Vt., which expanded and upgraded the rental shop as part of its new guest services facility at Spruce Peak and renovated its high performance demo center at the Forerunner quad.

Many resorts are seeing a growing demand for higher performance rentals. “We’re seeing a shift,” says Irene Donnell, PR director at Bretton Woods, N.H. “It’s easier for them to carry their boots than several pairs of skis. They can get different skis for different conditions and have a complete quiver full without having to purchase multiple pairs.” And without paying a lot for the privilege—Bretton Woods will charge just $4 more for performance rentals than for fleet gear, and will offer seasonal rentals as well. Hunter Mountain, N.Y., is also bringing in about 40 pairs of high performance skis this season, to “bridge the gap between retail demos and rentals,” says Eric Johnson, rental manager.

The trend is widespread. Debbie Carey, a spokesperson at Indianhead, Mich., says her husband’s ski shop in nearby Bessemer is renting many more high-end skis than it used to. “I think people are buying less and renting more,” she says.

Visitors are renting more at Sunday River and Sugarloaf, Maine, too, says Darcy Liberty, communications director at the two resorts. “We’re anticipating increases in rentals across the board,” Liberty says. “The quality of rental equipment has increased and skiers can try out as many skis as they want to.” For these same reasons, Mount Snow, Vt., turned over its rental fleet and increased it by 10 to 15 percent, according to Doug Daniels, resort services manager.

Mountain Creek, N.J., which does a lot of beginner visits, also expects rental activity to remain strong. To serve beginners better, Mountain Creek has converted its kid’s camp snowboards to Burton LTRs, added more women’s snowboard boots, and added a dedicated boot fitter for skiers, says Julie Koop, director of retail and rental.

For all the uncertainties this winter, the ski industry knows one thing: How rental activity ends up will likely have more to do with the weather than everything else combined.