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January 2011

Blue Pages :: January 2011

GET A GROUPON... ...OR TAKE A SHOT ON LIFTOPIA... JUST SAY NO TO GLUTEN... CULTURE SHOCK AT SQUAW VALLEY... 30 YEARS OF GRATITUDE... TAMARACK REOPENS FOR THE SEASON... SKIING IS A RELIGIOUS EXPERIENCE... STOWE: BEAVER CREEK OF THE EAST... SHORTSWINGS...

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GET A GROUPON. . .

The Groupon craze (www.groupon.com) has come to winter sports. A few areas tested the discount coupon e-tailer last winter, but it seems to be taking hold in the Northest this year. One of the first to pose a “daily deal” was Burke Mountain, Vt., which offered a roughly $25 discount on lift tickets, good pretty much any time this season. The sale was broadcast to Boston-area participants Nov. 30. Burke hoped to sell 300, and hit 600.

Perhaps inspired by that success, on Dec. 11, Sunday River, Me., made its own Groupon offer to the Boston market: a $39 lift ticket, valued at up to $79. But the ticket had to be used by Dec. 23. Even with such a small window, the deal snagged 660 takers.

Groupon being a nationwide movement, and its followers being just the sort of bargain-hunting upper-middle-class families that ski and ride, Groupon could become a popular way to boost business at slow times of the year. With Groupon taking 20 to 50 percent of the total sale, though, we expect areas will use this tactic sparingly.

For those not familiar with Groupon: this two-year-old company offers a daily discount, often more than 50 percent, on products ranging from chiropractic exams to gym memberships. Each offer is tailored to a local market, and deals are available nationwide. Groupon has been wildly successful in the current economy; Google was allegedly set to buy the company for $6 billion last November. No deal was made, but the rumor shows how big the Groupon phenomenon has become. Imitators are already appearing, so this sort of marketing will continue to grow.


. . . OR TAKE A SHOT ON LIFTOPIA
We thought that Groupon might pose a challenge to lift ticket discount outlet Liftopia, so we called to check. Turns out, it doesn’t. There’s more than enough consumer interest in lift ticket discounts to keep both services busy. Very busy, in Liftopia’s case.

For resorts, Liftopia has some advantages. Its date-specific, non-transferable ticket sales sidestep the fraud potential of Groupon, generate incremental business, and maintain higher margins, says founder Evan Reece. Liftopia’s business has grown exponentially over the past several years, to the point where it sold 100,000 lift tickets last year—and, with more than 150 resorts using the service, is on pace to quadruple that total this season. If nothing else, that’s a measure of the nation’s appetite for bargains.


JUST SAY NO TO GLUTEN
No matter how much we try to keep the outside world from penetrating our mountain environs, it still finds its way in. The latest evidence: in response to the growing awareness of gluten intolerance among its guests, Okemo is offering gluten-free options in all its eateries. An estimated three million Americans react badly to gluten, and enough of them are serious skiers and riders, apparently, for gluten to be on a resort’s radar.

Each of Okemo’s chefs was asked to develop gluten-free menu options, with mixed results. The Italian restaurant’s chef went whole hog, and is offering a variety of gluten-free pasta, pizza dough, and flatbreads. In the base lodge cafeterias, well, salads are gluten-free, and gluten-free specials and soups will be available “on a regular basis.” We’re not sure gluten-averse customers will find that sufficient, but Okemo’s making an effort, and that counts for something.

CULTURE SHOCK AT SQUAW VALLEY
With the purchase of Squaw by the investment firm KSL, a huge culture change is underway. Squaw founder Alex Cushing’s influence has been everywhere at the resort, even since his death in 2006. His vision and personality have shaped Squaw, for better and worse, and his determination to do things his way gave Squaw more character than most mountains ever develop.

But the managers of KSL—former Vail Associates executives Eric Resnick and Mike Shannon—are set to invest $50 million over the next five years upgrading the resort. Word is they are seeking advice from a variety of resort planners. A major goal is to make the resort more family-friendly, and another is to reconfigure the lift system to make intermediate terrain more accessible. None of that can be sitting well with the resort’s high-profile Squallywood crowd, which thrives on cliff jumping and screaming down couloirs that often open onto what some might view as ideal intermediate terrain. And we haven’t even begun to talk about how the various fiefdoms in Olympic Valley will react. The planner who manages to balance the divergent, if not mutually exclusive, interests of the different constituencies deserves a medal.

As for KSL, the company tends to acquire several properties in a given field—golf resorts and spas, for example, are two of its other areas of expertise. It wouldn’t surprise us to learn that the company is looking for additional winter resort properties, perhaps closer to KSL’s Denver home.


30 YEARS OF GRATITUDE
The Ski Resort Operations and Management program at Selkirk College in Nelson, B.C., is celebrating its 30-year anniversary this winter. The program’s 800 graduates have populated the ranks of supervisors, department managers, even shareholders and owners at major resorts across Canada and the world. As an example of its global scope, one student is interning with the Dolomite Ski Resort in China, just north of Beijing. But many graduates wind up closer to the school, which is, after all located amid some of the greatest skiing on earth. More than 50 graduates have settled in with local resorts, such as Whitewater and Red Mountain.


TAMARACK REOPENS FOR THE SEASON
Against all odds, Tamarack Resort managed to open this season, thanks to the efforts of homeowners who forged a settlement of the resort’s lease with the state and hired a staff of 65 to run mountain operations. All the necessary approvals came by Nov. 20, and the lifts began turning Dec. 20 in preparation for the Christmas holiday. The resort sold about 1,000 season passes after the plan to reopen was made public in September, and opening day was greeted with a foot of snow.

And the future? Majority owner Jean-Pierre Boespflug is backing a bid by Green Valley Holdings to buy the resort for $40 million. Rumor has it that some Tamarack homeowner bigwigs, such as tennis star Andre Agassi, are among Green Valley’s backers. A bankruptcy judge will decide in mid-January whether to approve the bid, which could inspire other suitors to come forward as well. After all the bad news regarding the area in recent years, it’s nice to see a few things go right.


SKIING IS A RELIGIOUS EXPERIENCE
In the eternal battle between Good and Evil, skiing is Good. So declared the Pope—yes, that Pope—last fall when a group of ski instructors dropped by the Vatican for a visit. Pope Benedict XVI praised skiing for being one way in which "man recognizes the greatness of God." He added that mountains are "an environment, which, in a special way, makes us feel small, giving back to us the right dimension of our being creatures. It makes us capable of asking ourselves about the meaning of creation, of looking above, of opening ourselves to the Creator.”

News of the Pope’s blessing inspired several posters at saminfo.com to share their religious convictions. “Skiing must be a religious experience to all beginners. Why else would they all be screaming ‘Oh, my GOD!’” wrote one. “I wonder if he will endorse the use of Holy Water for snowmaking! I have used the expression, ‘Only God can make snow at these temperatures,’" said another. “When I ski too much this season, I won’t have to feel guilty at all, [and] will find lots of salvation in each turn,” wrote a third. Skiing as religion: the Pope just might be onto something. See you in church.


STOWE: BEAVER CREEK OF THE EAST
Stowe Resort likes to think of itself as the Beaver Creek of the East. Its Spruce Peak at Stowe development includes million-dollar condos and an extensive spa and wellness center. And now, there’s the Spruce Peak Performing Arts Center, which was set to open during the Christmas holiday, an echo of Beaver Creek’s Vilar Performing Arts Center.

As at Beaver Creek, the Spruce Peak center is being financed by donations from local supporters. It’s designed to host a wide spectrum of events, including theatre, all types of music, dance, comedy, film, lectures and multimedia events. Just the sort of mix that high-end resort real estate buyers say they are looking for (see page 64 for details). And it should be a killer place to see Phish.


SHORTSWINGS
Rob Walz has bought Cascade Mountain, Wis.,from his dad, Phil Walz, who had owned the resort since 1977. Rob has run the resort for the past four years, with visits up each year . . . Snow Trails, Ohio, is celebrating its 50th anniversary. Congratulations to founding partner David Carto, who remains involved as president to this day.