The Voice of the Mountain Resort Industry  |  Est. 1962

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January 1992 Issue

Are We Giving Away the Store?

There are any number of organizations vying for the opportunity to market our ski resort or other services by "giving away" our services as they "sell" their memberships or coupon booklets.

If the system worked as they propose, we get exposure to thousands of members and potential customers, some of whom (who have never skied our resort before) will come to our resort because they can ski or stay or eat “free” or for substantial savings. Obviously they are going to love our area and come back later paying full rates and bringing lots of friends. Oh yes, and while they are skiing for free, they will spend lots of money in the bar, restaurant, ski school, and on lodging.

If this was actually how it worked, and sometimes it does, it might be a reasonable marketing tool. Unfortunately, when you get out in the trenches and find out how it is actually being sold and used, one has to wonder if it’s all worthwhile.

The question posed to the prospective customer is not “why not try this resort that you’ve never been to because they offer . . ?” Too often, the question is “Where do you plan on skiing this season?” Followed by “As long as you are going there anyway, why not save some money?” Naturally everyone wants to save money, so it is an easy sell. What is the actual effect then at our cash register? A customer, who is coming anyway, spends less when they were already prepared to spend full rate.

Does being a member of one of these discount organizations breed loyalty and strong customer base for the resort? I think not. As soon as the discount is used up at your resort, the money-conscious consumer simply moves on to the next “good deal” down the road.

If we do manage to steal another non-participating resort’s customer, are we doing ourselves and the ski industry a favor by cheapening the experience and creating unnecessary resistance to the real cost/price structure we need to survive and maybe even make a profit?

In this marketing triangle it may turn out to be a great deal for everyone, except the resort. I suggest that if enough resorts feel this type of program is worthwhile, why not let our regional or national association develop, promote, and sell the “memberships.” At least then we could all mutually benefit from the profits of giving away our services.

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