Paralleling these new prices will be packages that include lodging, lifts and use of the sports center. Early and late season prices per person, per day will be $37.50 at the inns and start at $32.20 in condos. High season rates range from $49.50 per person, per day for midweek to $75.20 for weekends. During midweek, children 12 and under ski and stay free, one child per parent.
Last season Stratton had a $20 ticket for early season and did not increase the regular season price of $25 over the previous year. The area did, however, have trouble activating a new and expanded snowmaking system, which observers say seriously affected credibility among skiers.
The new prices were the result of extensive meetings of Stratton’s Pricing Committee, headed by Marketing Director Chris Brink. “Interviews showed that skiers perceive risks early in the season,” said Brink. “It is still fall and the weather has adverse effects on the skiing experience. It’s like buying an AAA-rated bond versus a B-bond. There are different risks. What is the pricepoint where people will take the bigger risk?”
When asked about break-even figures on the new pricing, Brink said the fixed costs are there in any case and 500 more skiers won’t require more costs but will bring more revenue. He also said Stratton’s snowmaking will be working this season.
Elsewhere in Vermont, spokesmen at competing areas were not as sanguine about this reasoning on prices. “You can never make money on a $12 ticket,” said Bruce Watson, general manager of Okemo. “It’s convoluted logic, but Stratton must get incredible income from real estate and other amenities. It’s a lost leader.
“Stratton lost credibility last year with their snowmaking and mountain operations. They are trying to recoup the market share they lost, but I don’t think they had to drop the price to $12 to do that.”
At Sugarbush, Chan Weller, marketing director, said, “It’s a good marketing move in reaction to things that happened last year. They will draw people to see their new real estate developments.” Weller said that a promotional item such as a low cost introductory offer or a special mailing would be warranted to get the people to return to Stratton, but it was a mistake to go across the board with low pricing. He asked:What happens if the snowmaking doesn’t work? What happens in January if there is a thaw? What about days when it rains? He said people would expect a discount ticket at those times, too.
Weller said he thought the prices were a guard against Okemo and Bromley (owned by Stratton, but is not included in the $12 deal), and an attempt to regain business lost to Mt. Snow. “It’s a hot spike into Magic Mountain,” he said.
At Mt. Snow, Stratton’s closest competitor and probably the biggest beneficiary of last season’s debacle, a spokesperson said: “The Stratton pricing has been discussed at length, but we have no comment.”
