Once you get beyond 10 basic ticket types, however, additional products tend to be hybrids of the basic tickets. Granted, each additional product is one that guests demand, but the dynamics of each sub-product simply begins to reproduce itself.
The 10 basic lift ticket products currently in the marketplace are:
- Daily ticket
- Multi-day ticket
- Season pass
- Group ticket
- Age defined ticket (child and senior)
- Ski-card ticket
- Pay-per-ride ticket
- Prepurchased ticket
- Commissioned ticket
- Industry-pro-rate ticket
Daily Ticket
Beginning at the top with the most common variety, the daily lift ticket gives guests maximum flexibility in making decisions about whether to ski on a given day. As such, this premium ticket generally carries a premium price resulting in a two-edged sword for area operators. On the positive side, the premium price provides guest flexibility, while at the same time giving operators the highest yield. On the downside, the inherent flexibility of this ticket can negatively impact yield if a run of poor skiing days occurs and guests elect not to ski, creating no breakage for operators.
Along with the problem of flexibility, this ticket draws the greatest attention from the press when talk turns to the public’s perception of the high price of skiing. Unfortunately, the industry has not been able to demonstrate to the press that only a small portion of the tickets are sold at this price and that most skiers actually pay significantly less.
Multi-Day Ticket
The next step in a ticketing structure for most areas is the multi-day ticket, a product that allows skiers to purchase two or more days of skiing with one stop at the ticket window. Usually, as more days are purchased a greater daily discount will be offered. Generally the outer limit on the number of days purchased is 14, at which point other products usually take over.
In most instances, for multiple tickets of two to four days duration, all days must be used consecutively. For five-day purchases and greater, skiers are usually given a one-day grace period (that is, skiing, five of six days or six of seven days). These tickets almost always come with specific start and end dates after which the unused portion of the ticket spoils and breakage accrues to the area.
One benefit that operators derive from multi-day tickets is a purchase commitment from guests for a duration longer than one day. This extended commitment takes the daily to-ski-or-not-to-ski decision away from the guest and increases the operator’s ability to capture breakage on unused portions. A side benefit that develops for operators as this product becomes a stronger player in the overall ticket structure is the potential to reduce lift ticket lines.
On the negative side, while increasing the potential for breakage, multi-day tickets tend to reduce yield because generally discounts must be given to entice skiers to commit to higher multi-day increments. Another pitfall is the possibility of underground transfers. While no sure-fire prevention has been found, one currently in practice is affixing the guest’s picture to multi-day tickets of three or more days duration. Not only does this come close to thwarting underground transfers, it also creates a souvenir.
Season Pass
A broader form of the multi-day ticket is the season pass. While almost every area has some variation, season passes are often the least exploited of all lift ticket products. Over the years, it has been used by operators as the ticket that allows locals to ski all season for one fixed price which, based on its utilization, may offer a substantial discount to individuals.
Recently in some markets, the scope of the season pass has broadened into a more aggressive marketing vehicle by which areas are penetrating a wider range of traditional guests to enhance loyalty. An example is the deeply discounted youth pass that is sold during a limited time-frame within a tight geographical market.
Along with the loyalty that season passes develop, early season cash flow generated make this product, when managed properly, desirable for all operators. However caution must be applied in its development, because if it is not thoroughly evaluated each year, significant impacts on overall yield can develop that may be hard to reverse. As with all tickets, tracking season pass usage is critical for future decision making such as the development of a new product or retirement of old ones, and, because of its nature, tracking can be difficult and cumbersome. Finally, as with multi-day tickets, underground transfers of season passes can develop and operators need ticket-checking controls to counter such trends.
Group Tickets
Although group tickets carry the base characteristics of daily and multi-day tickets, they are a distinct product. When used properly, group tickets can have significant benefits for areas in terms both of yield and overall skier day generation. This product can be used to “purchase” large blocks of skiers (ski clubs, etc.) while moving them to time periods when mountain capacity is under-utilized.
When consideration is given to overall group programs (ticket, rentals, lessons, lodging, etc.), any negative impacts on lift-ticket yields can be offset through creative pricing and upgrades in ancillary products.
Unfortunately, some areas have group programs that were developed many years ago in a different economic and operating environment and have not been adjusted for changing times. When this happens, the program tends to take control of management and develops a life of its own. This phenomenon not only causes poor operating profits, but can create bad relations with guests when the situation is ultimately corrected. Care should be taken to ease changes in over a measured amount of time. Additionally, strong communications need to be in place between group sales, ticketing and accounting departments if potential accounting nightmares are to be avoided as programs grow.
Children and Seniors
A necessary evil that ski areas must accommodate as good corporate citizens is tickets for children and seniors. While there often are good reasons to have children’s programs (development of family business and future loyal guests,for example), senior tickets harder to justify. However, with some creative thinking, programs can be developed around these products to offset shortfalls in yield with incremental revenues in other operating departments. Additionally, with the child ticket, a strong potential exists for the sale of a full-priced adult tickets with each age-defined ticket. No matter how they are tempered, these tickets will significantly impact overall yield and should be carefully monitored to keep them in control.
Ski-Card Program
A product variation of the season pass is the ski-card program. Ski-cards allow operators direct access to large groups of skiers who are fiercely loyal to the sport, not necessarily to a given area. They can be either internal (Vail’s Colorado Card, for example) or external (Ski Card International, Ski Americard and others).
When used properly, both types of cards can be beneficial to ski areas. While targeting loyal skier markets through special pricing, these products can be used to drive skiers to slow time periods when capacity is under-utilized. Additionally, the data base that they develope allows areas direct access to known skiers through various forms of communication (direct mail, telephone, magazines, etc.). A nice feature of in-house cards is that, like season passes, these cards can generate significant early season cash flow.
On the downside though, if a program with one of these products is overly successful, there is no way to shut off the flow and consequently, ill-will may be created through overcrowding during a given program’s run. Additionally, because of the flexible nature of this product, no opportunity is afforded the operator to capture any breakage benefit.
Pay-Per-Ride Programs
While pay-per-ride products have been around in some markets for a long time, they usually have been confined to coupon-type programs. With recent advances in technology through lift-access systems such as First Tracks and Ski Data, some areas have been able to expand this basic concept into a more diversified product based on a point system. While these point products are fairly new and lack the history necessary to adequately evaluate them, pros and cons are evident.
If structured properly, pay-per-ride point tickets can significantly increase the benefits of breakage to ski areas. Market penetration can be enhanced through the development of marketing and public relations programs based on the flexibility and value that these tickets give. By applying the point system down to the single-lift level (that is, more highly used lifts cost more points), skier distribution on the mountain can be positively affected creating a better ski experience for all guests.
On the negative side, though, the increased flexibility afforded to marketing departments in program development could create significant accounting nightmares if time is not spent developing strong, consistent control systems at the outset. Transferability of this ticket is as bad as multi-day tickets or season passes and could conceivably get worse as the speed with which guests make their way through the ticket-checking system increases. Obviously, management must fully understand the ramifications of this type of product before decisions are made to install them.
Third-Party Sellers
Two of the more broad reaching lift ticket products are prepurchased and commissioned tickets. While both of these products have characteristics similar to paying a fee to a third party to handle the product, they also have some distinct differences.
Prepurchased tickets are usually sold on a daily basis through remote ticket outlets (grocery stores, gas stations and other stores) in day-skier markets located within 150 miles of the ski area. Commissioned tickets are generally sold in multi-day increments through travel agents and tour operators to destination guests coming from markets outside the day-trip perimeter.
While prepurchased and commissioned tickets are different products and warrant different marketing efforts to capitalize effectively on their attributes, the benefits of each to area operators are essentially the same. These benefits include an increase in the area’s network of ticket distribution outlets, the ability to direct business to slow periods and, when properly structured, an increased realization of breakage. However, when developing programs around these kinds of products, extreme care is needed to prevent cannibalization of other higher yielding products. Additionally, greater accounting controls will be necessary to successfully handle the added financial transactions that result from these products.
Pro-Rate Tickets
To promote goodwill within the ski industry, many areas offer a pro-rate ticket, but it usually receives little attention or evaluation, and often areas that offer these tickets do not use them to their full advantage. Like ski cards, group and prepurchased tickets, this product can be used to shift skiers to time periods when capacity is under-utilized. Slow periods are good times to get additional skiers on slopes and also generally are when industry employees have available time to use the product.
In a tight employment market, an additional benefit of this ticket could be to lure potential employees to a ski area to sample and, hopefully, get sold on accepting a job. However, once again operators need to be careful with this product for the discounted nature of the ticket could significantly impact yield if the program is not properly controlled.
Each of the 10 primary products could have a myriad of sub-products based on the characteristics of individual areas and guests. However, as the area that offers 1,300 different tickets has discovered, the possibilities can be endless. With each new lift ticket product developed, the intention is always a noble one: to please the guest by servicing him or her better. Unfortunately, at times opeators fail to adequately evaluate existing options and consider the ramifications of each option.
The key consideration of any ticket product is that proper evaluation be given to the guest’s desires (discovered through consistent research). In addition, there must be avoidance of the cannibalization of other products, implementation of proper controls and a commitment to a continuing evaluation of products with an openness to change when necessary. It must always be remembered that when structuring a ticketing program, the commodity sold is time; once that time has expired it cannot be retrieved or exchanged for a refund.
