Has it not! And what we are seeing now is an exciting rush to high tech, using bar codes and scanners, magnetic stripes, integrated microchips, radio relays and laser beams. The technology is catching ticket cheats, delivering messages to skiers, accumulating mountains of database marketing data, automatically debiting customers, rewarding frequent skiers—and incidentally performing the functions of the traditional low-tech paper ticket.
How are these systems working? We focused on six new systems installed at six U.S. areas which installed new systems this past year and asked an executive at each to give a brief rundown for our readership—write a review. These systems range from a new, computer-based ticketing system installed at Red River, New Mexico, with no pretensions to access control, on through to a system that appears to be ticketing, marketing and accounting departments all rolled into one packet of electronic wizardry. Readers should also remember that five of the six systems described were previously untested in the field, and a lot of “debugging” was assumed.
There are other systems; we cannot cover them all here. We chose to give the readership a broad sampling. SAM’s editorial columns will be exploring these technologies further.
Convinced that electronic access or ticket checking will have the same impact on the sport of skiing that power tillers or detachable quads enjoyed in the 1980s, I began investigating it some five years ago. Equipment and installation costs were always perceived as an obstacle, and the customer benefit seemed limited. The concept of combining electronic access and a frequent skier program was the missing link.
Northstar-at-Tahoe, using the First Tracks electronic ticketing and access system, introduced a high-tech frequent skier program we called Club Vertical. It was developed to increase loyalty among existing Northstar skiers in the competitive Lake Tahoe market. Club Vertical benefits include a modest lift ticket discount, awards for accumulated vertical feet skied, club lift lines at every lift, an auto-charge feature that allows the customer to bypass the ticket booth, a messaging feature and a monthly newsletter.
While the Club Vertical concept can work on any of the new electronic ticket hardware, First Tracks was selected after a careful analysis of the market place. Features in their favor included user-friendly scanner and gates, inexpensive and reusable Ski Key access pass, flexibility of software to meet both current and future requirements and attractively competitive pricing.
The system was delivered and installed on schedule. Much of the on-mountain installation was done by Northstar’s electrical department. The system was on-and operational before the area’s November 21 opening. Training and support from First Tracks was excellent during the initial start-up and early operational phase; Northstar staff assumed full system responsibility within 30 days of start-up. With only occasional hardware glitches that were mostly corrected by staff in 15 minutes or less, the system performed beyond expectations and provided 100 percent verification and record-storing capability for the entire initial season.
Customer response was outstanding. First season projections had a target of 2,500 memberships, at $59 for adults and $39 for both children and seniors. As it turned out, nearly 6,000 memberships were sold the first season, generating a less-than-one-year payback of the system acquisition, installation and program marketing costs. Second year memberships are expected to exceed 10,000.
The Club Vertical concept generated eight television stories, over 100 newspaper and magazine articles and hundreds of written customer comments in praise of the system and its features.
Data generation is “big brotherish” in that Northstar has the ability of identifying skier habits by pattern, demographics and zip code—not only generically, but individually. The success of the system and program has enhanced Northstar’s data base marketing potential to a level commensurate with that of American Express and other direct marketing giants.
Future potential includes the opportunity of selling skiing by the vertical foot; resort charge features, including employee identification for discounts; possibilities for differentiated access within the area. One under-estimated feature of the system was its use as an employee season pass. Employees free skiing on the mountain could be located on the mountain for work assignments. In addition, it was easy to recover the season passes of employees who had been separated. Their ski keys were simply turned off, making them invalid. For some resorts, this feature alone could justify the purchase price!
In reviewing the first season’s numbers for the Club Vertical it clearly was not a discount program. Though some participants did log some awesome vertical totals, the average participant skied only 4.1 times, while the breakeven for participating was five. If anything, it operated as a program where skiers paid a premium for perks and prestige and the fun of earning rewards at various levels of participation.
