At first glance, it would seem that a ski-area rental shop begs for computerized efficiency. Renting skis can be a cumbersome and tedious experience for renters. They have to fill out paperwork and pay, then queue up for boots, skis or snowboards, then maybe poles and helmets, then perhaps pay again for any upgrades bought along the way. Many renters are neophytes who work up a frustrating sweat because they’re overdressed against on-hill chill in their bibs, down coats and mittens. Then they’re sent out into the cold, juggling all their gear. Is that any way to build return business?
Now picture a world in which renters reserve their gear, down to the make, model and binding setting, on the Internet before they leave home. Others speed through an express line because they have a prepaid voucher, issued when they bought a lift ticket or registered at a lodge. During the morning and evening rush hours, shop personnel wander among the guests to scan check-ins and check-outs on wireless devices the size of walkie-talkies. Inventory is tracked by transponder chips implanted in boots and bindings, like those Head-Tyrolia is bringing to market this season. The system remembers the address, boot size and equipment preferences of repeat customers. If someone keeps rental gear for an extra day or two, no problem; the bill is automatically reconciled with a scan as the equipment is returned. And the transactions are logged into a frequent-flyer-style loyalty program to keep skiers coming back.
Pros and Cons
Given all these potential benefits, investing in rental software to improve efficiency must be a no-brainer for any resort that can shake loose the capital expenditure, right? Not so, says Mark Danemann, president of Siriusware, which sells integrated software systems for entire ski area operations, including rental shops. “It’s hard to beat out a manual rental system that’s run efficiently,” says Danemann.
That may seem like strange talk from a guy who sells one of the most sophisticated software systems on the market today, including those neat wireless devices. But Danemann’s caution is born of experience. “I don’t want to come off as a naysayer to rental software, because there are many advantages,” he points out. “I’m just conscious of the issues.”
The main issue is the ski area’s market niche. Rental software systems can be a big help for resorts with multiple points to enter the renter’s data, like lodges and online booking operations. Smaller ski areas may actually lose efficiency with computerized rental systems if they’re dealing with a clientele that hasn’t registered for lodging or hasn’t stopped by the ticket window first. Plus, saving a customer’s rental history may seem like a waste of bytes because many never-evers never ever return.
Consider how you deal with large groups, for example. When the bus arrives, it may take longer to input the crowd’s information into a small number of computer terminals than to have paperwork and ballpoints available in self-serve stacks. And a good technician can size up whether a skier’s ability matches the information on the form better than an order-picker who’s simply working from a computer printout. “There is no computer more powerful than the human brain,” says Danemann. “Rental shop employees can’t be automatons.”
In the right situations, however, rental software can be a powerful tool. Many ski shops, especially those at destination resorts, discovered the effectiveness of rental software years ago. Sport-Select, a California-based developer, has been supplying rental software since the late 1980s. It has approximately 70 installations, including Copper Mountain, Colo., Mount Bachelor, Ore., and Snow Summit, Calif.
Not all customers are big-time operators, though. “We have a mom-and-pop shop with only 150 pairs of skis,” says Greg Seeger, president of Sport-Select. “Sure they could do it with paper, but they enjoy the benefits of our system.”
Questions and Answers
The greatest benefits of rental software lie in the information and control they provide. At the end of the day, managers of rental shops large and small have several important questions to ask: How much equipment needs repair? Which items are ready for maintenance? What equipment hasn’t been returned and who might have it? Rental software can provide quick and detailed answers.
Plus, rental software makes it much easier to answer those key questions that arise at the end of the year: What is the percentage of skis vs. snowboards rented? Did any item consistently run out? What equipment is worth keeping and what should be sold? Should we change our product mix? A rental software system can continuously answer these questions and more. Reports are limited only by the user’s imagination to query a database.
Should you buy the rental software as a stand-alone program, or as part of an integrated system? Most mainstream rental systems are sold as modules of software suites that integrate lodging, ticketing, food service and other aspects of ski area business. Combined, these systems provide a powerful tool for business analysis across several departments. Integration obviously seems preferable, but integrating rental software into an existing company-wide system that wasn’t designed with a rental module is one of the greatest challenges in the technology business. The rental software decision has to be considered as part of the resort’s overall software plan. One option is to settle on one of the reputable companies that offer a modular system, and install the various modules as budget and staff retraining allow.
Another issue is the lack of standardization in rental shop processes and inventories. “A [software] rental system has to be highly flexible and customizable,” says Siriusware’s Danemann. “One system doesn’t fit all. It’s not just plug-and-play, like a ticketing system.” Make sure the package suits your operation or will enable you to improve it.
State of the Art
Perhaps the most powerful alliance in the rental software game involves Resort Technology Partners, Specialty Sports Ventures and Vail Associates. RTP developed the architecture for Specialty Sports, which owns 115 shops—both independent and resort-affiliated—in the western U.S. and Canada. Vail has a partnership interest in both RTP and Specialty Sports and, of course, uses the rental technology.
Specialty Sports customers have a high degree of flexibility in how they go about renting skis. For example, they can reserve and pay for equipment at the eminently memorable web address www.rentskis.com. Or they can visit a local Specialty Sports shop, try on gear and arrange to have it available when they get to their destination. If they rent skis at Beaver Creek, they can return them at Telluride or any other Specialty Sports location. They can pick up and return skis at Denver International Airport while retaining the ability to swap out equipment during a lunch break at Breckenridge.
Like other rental packages, the RTP system is designed to foster loyalty. “Customers like to log in and find themselves in the system, even if they’ve never been to a resort before,” says Jody Holman, area manager of Specialty Sports. “It’s great for them to walk in and we know exactly what to put on their feet.”
Not only do the shops know what to put on, they know exactly how long it takes. “We measure the time of every transaction and always try to make the process more efficient,” says Holman. “If it takes more than a half-hour, the customer gets it free.”
Costing it Out
The cost of rental software? It ranges widely. For example, a ski area that already has a Siriusware system for other operations could install the rental module for about $18,000. That would buy eight sales points in multiple locations.
Sport-Select bundles rental software with a point-of-sale terminal that ranges from $495 for one terminal to $2,995 for 10. Yearly upgrades cost about 30 percent of the original purchase price.
The off-the-rack rate to own the RTP software is $3,500 per point of sale, but the price drops significantly with volume. Also figure on a $7,500 one-time fee for an inventory program, plus an annual 20 percent charge for 24/7 technical support and upgrades.
Intouch offers a subscription-based service that ranges from $900 to $1,300 per terminal per year, depending on the number of terminals. That includes version upgrades and technical support. The company is working on a Web-based version.
But the initial costs are not the whole story. All suppliers agree that rental software is a difficult technology to implement. “When I first got into this business I asked, how complicated could it be?” says Sport-Select’s Seeger. “Let me tell you, it’s very complex.” So give yourself plenty of time to become familiar with the system, and to train staff on its use.
Does it Compute?
Here’s a business-like list of rental software benefits, as presented by Tim Maskrey of the California-based software firm Intouch Technology:
Inventory Control
- Electronic maintenance of records—no file cabinets
- Equipment recovery (theft)—tracks all renters
- Inventory turn (track usage or age for resale purposes)
- Easy to search and report on details of rentals and inventory
- Manage inventory at multiple locations
Risk Management
- Automatic DIN calculations
- Eliminate calculation errors
- Accurate record keeping
- Eliminate illegible handwriting problems
- Automatic scheduling of in-season maintenance sampling
Customer Tracking
- Marketing purposes (maintains guest/renter information)
- Demographics
- Customer satisfaction survey
- Track payments
Business Reporting
- Data collection
- Usage per item
- Maintenance data
- Income
Rental Software Suppliers
- 1) FCS Development, Inc.—(802) 747-9075 www.fcsdevelopment.com
- 2) Genisys Software, Inc.—1-800-233-4095 www.genisys-software.com
- 3) Intelli-Mark/Etix—(919) 782-5020 www.intelli-mark.com
- 4) Intouch Technology USA, Inc.—(805) 682-9999 www.intouch-usa.com
- 5) RTP, LLC—1-800-357-2514 www.rtp.com
- 6) Sirius Software/Siriusware, Inc.—1-800-351-0633 www.siriusware.com
- 7) Sport-Select—(208) 325-3700 www.sport-select.com
