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September 2018

News & Views :: September 2018

Opinion and happenings from around the resort world.

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A LEARN-TO CONUNDRUM
Is there a disconnect between top management objectives on learn-to efforts and the profit goals of individual departments that would have to absorb the cost of those efforts? That seems a very likely but largely unaddressed issue. Turns out, there might be a solution for this: hold stakeholders responsible, by making it part of their compensation.

Here’s how we at SAM arrived at this conclusion:

Sarah W. (former Ski Vermont marketer): I think one of the biggest disconnects is that the GMs, presidents and CEOs see this as a big topic, but it doesn’t often trickle down to marketing. Every Vermont board member at VSAA wanted us to focus on growth and wanted their resorts to participate in anything growth related. But most marketing contacts I worked with said they put far fewer dollars into learn-to, and some even admitted to not promoting their learn-to packages—because they aren’t profitable. Instead, marketing departments are focused on selling more passes, and competing with neighbors. They don’t carve out much time, money, and messaging for learn-to. Perhaps the biggest hurdle for growth is communication within the resort, between management and marketing.

Dave (former Mount Snow marketing director): I was one of the guilty ones who didn’t pay nearly enough mind to learn-to. Part of that, too, was that the ski school at Mount Snow was already booked, especially with kids programs, and the manager wasn’t keen on promoting discounted learn-to offers, either, because they cut into his very profitable operation.

In my silo, my view of learn-to was that it was more of a pain to deal with than an industry issue that we needed to pay attention to—and do our part to solve.

Sarah: It sounds like the message from the GMs rarely makes an impact down the line. There are a lot of standard practices in the industry that fight against growing the sport, and in order to see real growth, we need to see real change in how resorts prioritize this initiative in action, not just talk.

Rick (longtime navel-gazer): It sounds like the stumbling block is the resort-wide fixation on maximizing profits in each department, rather than across the entire resort, or over the long term. Decisions are driven by short-term thinking, mainly as the result of the silos that departmental budgeting creates.

Perhaps resort GMs and presidents need to establish a completely separate budget and interdepartmental team to work on learn-to programs, with team members’ compensation based in part on how well their learn-to programs succeed. Reward them for learn-to successes. Otherwise, learn-to seems like a distraction, instead of the make-or-break matter that it really is.

Perhaps, too, if their incomes depended on it, the learn-to principals would find a way to track beginners after their first taste of winter sports, and would find ways to invite these folks back.

Sarah: Yes, include those whose job is to track beginners and keep tabs on them. Ski Vermont funded a tracking program for all Vermont resorts for the last three years. But even then, resort participation was meager, and many reported that they do not follow up with first-timers after their first lesson.

SUMMER STRENGTH
Now that summer is a thing at ski areas, business levels are worth measuring. And, like winter, weather is one of many factors that affect business.

Weather can even impact the success of indoor facilities, such as the Fun Zone 2.0 at Smugglers’ Notch, Vt. According to Smuggs’ PR guru Mike Chait, the hot, humid summer in the Northeast gave a boost to the climate-controlled environs of the Fun Zone, which includes adventurous activities such as a ninja course, climbing walls, and free fall, in addition to a slew of bouncy houses for kids and an arcade.

But a rainy start to the season has kept Smuggs’ overall business comparatively flat. Chait’s theory: Vermont schools had a ton of snow days over the winter, extending the school year into late June, cutting into play time. So, like many eastern resorts, rain and snow may be to blame for a slow start to the summer.

Innovation can also be a key to success in summer. Killington’s new Beast 365 All Season Pass accounted for 20 percent of all early-season pass sales. The new product provides lift access in winter for skiing and riding, and in summer for downhill MTB, plus all access to the rest of the resort’s many summer attractions, including its mountain coaster, zip lines, ropes course, and more. PR manager Kristel Fillmore says mountain bike business is up 46 percent year over year.

Killington Beast 365 passKillington’s Beast 365 pass provides lift access for skiing and riding in winter and mountain biking in summer.

In the West, where wildfires raged in several ski states, the flames themselves haven’t had as much of an impact on business as the smoke from distant fires has, or just the threat of fire.

Arizona Snowbowl, for example, was shut down by the Forest Service just days before Memorial Day weekend—and remained closed for several weeks—because of the threat of wildfires, not because some were burning nearby.

Snow King in Jackson, Wyo., which does more business in summer than it does in winter, has had a busy summer, says director of skier services Brian Maguire. However, Snow King experienced two weeks of heavy smoke from the Grassy Ridge Fire in eastern Idaho, and that may have kept some visitors away. At Big Bear in SoCal, marketing manager Justin Kanton says that the wildfires “do affect people’s ability and eagerness to travel.”

Lodging occupancy and revenues out West are still strong, according to Inntopia VP of business intelligence Tom Foley. At press time in mid-August he said, “Summer 2018 (May 1 to Oct 31) occupancy at western mountain destinations as of July 31 is up a moderate 2.4 percent compared to this same period in 2017, with a 40.3 percent occupancy rate.” Only September (-5 percent) and July (-0.4 percent) showed declines. Average daily rates (ADR) were up 2.1 percent, at $247.48. Combined, the occupancy and rate gains add up to a revenue gain of 4.5 percent.

IT'S AN UP-LIFTING YEAR
For years, many lift experts and inspectors have been encouraging resorts to upgrade the industry’s aging lift infrastructure. Well, the idea seems to have taken hold, at least for this year. Both major suppliers, Doppelmayr and Leitner Poma, say they are in the midst of their busiest years in decades. (For some examples, see “Construction Site,” pp. 60-61.)

To some extent, the surge in investment stems from the Trump tax cuts and accelerated depreciation, says Leitner Poma’s Jon Mauch. “We’ve taken advantage of that ourselves, and bought a lot of new equipment for the factory,” he adds.

Doppelmayr did much the same, says president Mark Bee. But Bee notes that while this year’s liftbuilding activity is the highest in perhaps 30 years, contracts for many of the installations were signed prior to the tax law changes.

Plus, the federal news hasn’t been all good. Both lift suppliers note that steel producers began raising prices as soon as Trump began threatening to impose tariffs—and well before they were instituted. Bee pegged the increase at up to 40 percent, but also noted that the total cost of goods has increased far less—so far. If tariffs are extended to include manufactured products in the future, the situation could change again.

Regardless, this year’s capital expenditures have clearly shifted to lifts. Snowmaking and grooming suppliers report that business has been good, but not unusual, unlike the situation with lifts.

So what’s behind it all? Alterra, with its aggressive investment plan for its resorts, has spurred some of this growth. Vail Resorts’ four major lifts at Whistler Blackcomb have also contributed. And the moves by the two conglomerates may have spurred other resorts to keep pace.

It’s also possible that resorts have been listening to the experts, finally, and have decided that it really is time to replace some of those old lifts.

SNOW STEALERS
Nowadays in the States, it’s not unusual for someone in a position of great power to make outlandish, unfounded statements about matters of importance. It’s unclear how common this is in Iran, too, but it clearly does happen, as evidenced by a statement in July by the nation’s head of Civil Defense.

At an agricultural conference in the Iranian capital of Tehran, Brigadier Gen. Gholam Reza Jalali said, “Foreign interference is suspected to have played a role in climate change. Joint teams from Israel and one of the neighboring countries make the clouds entering into Iran barren. Moreover, we are faced with the cases of cloud theft and snow theft.”

You heard that right. A military official is accusing neighboring countries of, somehow, stealing snow by drying up snow clouds as they enter the mountains of Iran. In case you didn’t know, Iran has some big mountains and a handful of popular ski resorts. Apparently, the general’s conspiracy theory is derived from a survey that reportedly found all mountainous areas higher than about 7,100 feet from Afghanistan to the Mediterranean Sea were covered in snow, except those in Iran.

The head of Iran’s meteorological service said the general could be privy to info most others aren’t, but “on the basis of meteorological knowledge, it is not possible for a country to steal snow or clouds.”

BAILING A SINKING SHIP
If you haven’t been following the saga of the private, members-only Hermitage Club in southern Vermont, it’s worth a Google. From the time the club’s founder Jim Barnes began upgrading the infrastructure at Haystack Mountain—where the club’s ski area is—he’s been under fire for self-inflicted financial issues, and generally thumbing his nose at the rules.

sep18 news and views 02Courtesy of the Vermont Department of Taxes.Dozens and dozens of lawsuits have been levied against Barnes and The Hermitage since 2012, including a few by the federal government and the state of Vermont. Other complaints are from vendors, many of them local, and utilities that haven’t been paid for products or services rendered, to the tune of several million dollars. Former employees have filed suit for unpaid wages, discrimination, and other charges. A federal lawsuit alleges Barnes committed consumer fraud. Most lawsuits are still ongoing, with more filed seemingly every day.

In March, the Vermont Department of Taxes shut down operations at The Hermitage three times. The club made payments toward back-taxes in order to reopen after the first two, but then on March 30 it was shut down indefinitely. Not long after, Berkshire Bank foreclosed on three defaulted loans totaling about $17 million, and a court-appointed receiver took over in early June.

And yet, after years of showing he has no interest in paying debts, Barnes has somehow found an investor that may bail him out. In late July, Barnes announced in an email to membership that the club signed a “non-binding term sheet with Oz Real Estate to provide capital for restructuring the club’s assets and for real estate development.” Oz would provide $50 million to take over the club’s debt and take controlling interest of the club from Barnes.

Oz, of course, is the parent company of Ski Resort Holdings, which purchased a majority of CNL Lifestyle Properties’ ski area assets about 18 months ago, and has since sold about half of them. So, Oz has some experience in the ski area market. If the term sheet goes into contract, and Barnes is still somehow involved, it could be an expensive mistake.

SUPPLIER NEWS

Steve Daly is now doing western North America sales and business development for DEMAC LENKO.

Jen McLaren is the new president of SMARTWOOL. Travis Campbell stepped down from the role to become vice president and general manager of THE NORTH FACE, AMERICAS and Arne Arens was promoted to global brand president.

Mike Rogge was named editor of THE SKI JOURNAL.

PRISME will soon begin construction on two via ferrata climbing routes up the Tram Face at Squaw Valley Resort, Calif. Via ferrata, an Italian term meaning “iron way,” is essentially an assisted rock climbing route, allowing those without climbing experience to make their way up the rock face. Climbs will be led by Tahoe-based outfitter Alpenglow Expeditions. The courses are expected to open by late September.

PRINOTH has launched a new Online Parts Shop in an effort to make the parts ordering process simpler, faster, and more accurate. Customers can sign in, select the machine they need parts for, browse through diagrams to identify the parts they need, and place orders directly to a Prinoth parts department or authorized dealer. “We are confident customers will appreciate this way of working. This technology has been around in other industries for years and it was Prinoth’s duty to implement it also in order for customers to benefit from an easy way of ordering parts,” said Guy Massicotte, director of the after sales network for North America.

sep18 news and views 03The new Prinoth Online Parts Shop allows customers to browse diagrams to identify the parts they need.

Resorts the world over are increasingly focused on upgrading their snowmaking systems. Case in point, SUFAG, a subsidiary of MND GROUP, has signed contracts totaling €9.3 million (about $10.7 million) for snowmaking installations and upgrades at six resorts in France, five in Japan, and several in China, according to the company, including Wanlong Resort, one of the venues of the 2022 Olympic Games in Beijing.

PEOPLE

sep18 news and views 04Brian Czarnecki, president and COO of Camelback, Pa.In the East, Brian Czarnecki is now president of Camelback Resort, Pa., in addition to his role as COO. … Ed Youmans has become GM of HoliMont, N.Y., following the retirement of longtime GM Dave Riley last winter. … Karen Wagner has ascended to ski patrol director at Stowe Mountain Resort, Vt. Wagner succeeds Bill Schaaf who stepped down in April after 19 years. … Loon Mountain Resort, N.H., promoted Andrew Noyes from VP of mountain ops to the newly-created position of VP of guest services, and elevated Kevin Bell to VP of marketing. ... Brian Norton is now director of mountain sports development for Boyne Resorts. … Karolyn Castaldo is the new director of communications at Sunday River Resort, Maine.

Caitlin FurinCaitlin Furin, communications director at Ski Utah.In Utah, Park City Ski and Snowboard hired John Kanarowski as executive director. … Justin Rowland has become manager at Whisper Ridge Backcountry Resort. ... Caitlin Furin has joined Ski Utah as communications director.

In Colorado, Gary Rodgers has stepped down from his role as general manager of Copper Mountain. … Maren McCutchan joined the marketing team at Steamboat Ski & Resort Corporation as the new digital communications manager. … Sam Williams has taken on the role of senior director of mountain operations for Purgatory Resort and Hesperus Ski Area. … Telluride Ski & Golf Resort has hired Tobias Rimkus as assistant general manager of The Peaks Resort & Spa. … Alterra Mountain Co. appointed Kat Jobanputra to the role of senior vice president of retail and rental.

In the Far West, Mike Quinn is now VP and general manager of Mt. Hood Skibowl, Ore., and Brett Fischer is VP of lodging/future development and planning. … Wade Reeser was named chief operations officer of Big Bear Mountain Resort, Calif.

OBITUARIES

sep18 news and views 06Jimmie SpencerJimmie Spencer, longtime leader (1979-2011) of the Canada West Ski Areas Association (CWSAA), died July 16 at age 92. Spencer was inducted into Canada’s Ski Hall of Fame in 2011.

Longtime southern Vermont ski area leader Peter Hand died July 10, his 74th birthday. Hand was president of Haystack Mountain from 1986-1991 and then worked for Boston Culinary Group as director of food and beverage at Bromley Mountain for 20 years.

LeRoy Schultz, aerial lift and tramway engineer, died July 15 at age 81. He started as the U.S. Forest Service regional tramway engineer in Montana and Idaho. He worked for Thiokol Chemical Corporation as director of engineering for its lift manufacturing division and Kendall Insurance/Willis Corroon (MountainGuard) in ski area engineering and loss prevention. He also authored the NSAA Lift Loading and Unloading Guidelines.

John Howe, who designed skis for Head and Atomic, died June 15 at age 83. He also patented Head’s line of composite tennis rackets and wrote “Skiing Mechanics,” describing how skis turn.