Cross-country ski centers located at alpine ski resorts offer many benefits to the overall resort operation, not least of which is an impressive potential for earning income. And while there are outstanding exceptions in both the United States and Canada, for the most part the attractions of nordic skiing are largely ignored by alpine management or facilities are little more than afterthoughts, poorly supported and ill-promoted by the parent company. With some careful planning and a professional staff, however, a nordic affiliate can do much to help the bottom line.
Assuming an average $11 trail ticket, $15 rental package and $15 lesson (based on Cross Country Ski Areas Association research), let’s say a site has 5,000 paid visits in a season. Figuring conservatively, those three sources should generate at least $100,000 based on average 80 percent of face value for a trail ticket, 70 percent of guests renting and 10 percent taking instruction. Add to that revenues from food services, retail, lift ticket sales for telemarking and the possibility of a backcountry guide service and things look interesting.
Another fact that can affect the bottom line is that investment in nordic trails requires only a fraction of the capital put into downhill. Similarly, payroll and trail maintenance costs are comparatively low for cross-country centers because staffs are smaller and off-season trail maintenance is minimal when compared to reseeding and erosion control measures on alpine slopes and trails.
Next, consider the boom in snowshoeing, which can create profits almost equal to those of cross-country (fewer lessons) for an even lower cost. The two sports can share base facilities and snowshoeing rentals can easily run in the black, while ancillary expenses such as trail development are nominal.
Nordic also appeals to market segments not normally associated with alpine skiing. If you’re interested in getting a more diverse group to your resort, it’s worth noting that an estimated 55 percent of visitors to cross-country areas are women. National Sporting Goods Association (NSGA) data also suggest cross-country skiers are somewhat older than downhillers, which could translate into more discretionary funds.
Finally, look at multi-season use of nordic facilities and personnel. For example, the base building can rent and sell mountain bikes in summer. Food services can continue to function in the off-season and trails built for skating, classic skiing and snowshoeing become hiking, biking, running, orienteering and interpretive nature paths if they’re built to appropriate specifications that are outlined in a vital guide called, “Cross Country Close to Home: A Ski Area Development Manual.” The book is available through Snowsport Industries America (SIA) or the Cross-Country Ski Areas Association (CCSAA).
The concept of creating multi-season uses of nordic trails has worked well at certain resorts. According to Suzanne Roy, communications coordinator at Mont-Sainte-Anne, Quebec, “It is the use of our (nordic) facilities on a yearly basis that makes them profitable for us,”
Facts, not assumptions
That estimate of 5,000 paying customers in a season is far fewer than many downhill cross-country affiliates have enjoyed. The nordic centers at Bretton Woods and Waterville Valley in New Hampshire and Oregon’s Mount Bachelor have all enjoyed in excess of 25,000 paid visits in a season. Mont-Sainte-Anne has seen 40,000 guests and Cypress Mountain, minutes from Vancouver, B.C., has recorded more than 70,000 visits. At the same time, some percentage of nordic skiers may be multi-day visitors, renting beds and buying meals. No one seems to know exactly what dollars are generated by destination cross-country skiers, but at some sites it’s considerable.
“Cross-country extends our season by almost a month,” says Gord Vizutti, VP for media relations at Silver Star Mountain Resort, B.C. “It keeps our restaurants and hotels open.” He adds, though, that cross-country is a profit center at Silver Star even without counting food and lodging sales. The resort saw a jump of 42.4 percent in cross-country visits this past season because of a cross-country camp it offered almost a month before the regular alpine season kicked off. Skiers who attended that camp came back for repeat visits.
A major cross-country operation can also help sell real estate, as witnessed by Lone Mountain Ranch, near booming Big Sky, Mont. At least a dozen ranch guests have bought land locally. And, as many as 70 percent of their visitors are also alpine aficionados.
Another attraction of nordic skiing is the substantial size of the cross-country skiing markets. According to an Outdoor Recreational Coalition of America study conducted by Leisure Trends, 8.5 million people used skinny skis in 1998. And these people tend to be affluent. NSGA data from 1997 say 22.8 percent of participants had household incomes greater than $75,000. Add the fact that it’s a low-risk sport with little history of litigation and it is even more attractive.
Indirect benefits
We’re all aware there’s been no substantial growth in alpine visits in the U.S. since the late 1970s. And when you consider how competitive the business is today with ski areas fighting for market share, it’s clear that other activities are needed to win guests. Few resorts could survive these days without snowboarding. Most have also added amenities that entice families, trying to extend the length of stays and increase spending by tempting customers with such things as sleigh rides, snowmobiling, snowshoeing, ice skating and day care, etc. Cross-country can fit seamlessly into this expanding recreation menu.
“We like to give our guests more than one experience,” says Susan Brian, nordic ski manager at Crystal Mountain Resort, Mich. “People look for many options at our resort.” Their weekend visitors may ski downhill Saturday morning before moving to the nordic trails in the afternoon to avoid the crowds.
So, opportunity knocks. But it’s also possible to lose market share to resorts that have outstanding nordic facilities. According to a 1999 study titled, “Outdoor Recreation in America,” 11 percent of all downhillers also ski cross-country. A competitor with an attractive nordic operation may grab those customers.
There’s also the alpine widow or widower to consider. Nordic appeals to a lot of non-alpine enthusiasts who travel with downhill skiers. A lot of people— men and women—are afraid of speed and heights. Nordic areas can entertain such people for days.
Should you go for it?
Given that it’s clear there’s an opportunity to make a profit from a cross-country center based at an alpine resort, the next question is: How to begin? The nice thing is, the answer doesn’t involve reinventing the wheel and it doesn’t mean you need a huge trail network. More important are the availability of gentle routes, good marking and signage, excellent grooming and quality services.
“Not only do downhill resorts have a tremendous opportunity to develop profitable nordic centers,” says Chris Frado, president of CCSAA, “they may already have the lodging as well as amenities, infrastructure and snow expertise. Of the top 10 centers nationwide in terms of skier visits, three are located at alpine areas.” CCSAA is an invaluable asset in terms of experience, ideas and networking and is well worth contacting with questions.
On the immediately practical side, the ski area development guide mentioned earlier was an SIA concept that was developed under contract by Nordic Group International in 1986, it’s a 190-page introduction on whether and how to evolve successful nordic facilities. Despite its age, the manual is still current on everything from staging-area design to grooming techniques.
In addition to technical material, the manual stresses treating customers and the business with the same degree of care that’s familiar at leading alpine resorts. Themes include environmental concerns, risk management, client convenience, aesthetics, balance of facilities and services, expansion potential and snowmaking to name a few.
Develop the right attitude
Nordic affiliates can be extremely productive, but they need to be developed with respect. Many existing areas suffer from an off-hand “This-looks-easy, let’s-do-it” syndrome.
The following is a partial list of familiar errors that occur when development isn’t taken seriously: lethally steep narrow trails with tight turns or incredibly boring routes on golf courses, deep mud or ice fields in parking areas, photocopied trail maps, wind-exposed instruction areas, emphasis on competitive events that close arterial trails to bread-and-butter recreational visitors, inadequate base buildings, outhouses instead of restrooms, unpredictable grooming, mediocre rental equipment, dangerous road crossings and under-passes that don’t drain. In other words, if you can’t do it well, it’s better not to do it at all.
When planning a nordic facility, it’s important to fashion facilities and develop staff attitudes that make a visit fun or, in fact, create an atmosphere that entertains. A few tactics include creating terrain gardens and children’s play areas, developing interpretive trails, creating resting points with interesting views, grooming small hills for dual slaloms and erecting low-impact unusual destination shelters such as yurts or wall tents.
Start the project by asking yourself: After my initial visit, what would I say to family, friends and neighbors about the experience? When you apply that word-of-mouth test to nordic facilities, you find they require the sort of thoughtful development and operational finesse found at North America’s outstanding alpine destinations. With care, they can be major assets to a parent resort.
And if you’re still wondering whether cultivating crossover customers really works, take a look at Royal Gorge Cross Country Ski Resort near Lake Tahoe. It’s the world’s largest privately-held nordic resort, a 9,000-acre winter playground with 120,000 visits in a good year. Their most important market segment (35 to 40 percent) is alpine skiers because of their proximity to alpine resorts around Lake Tahoe.
