Mountain Resorts, RV & Water-based Resorts

Objectives To become familiar with the development process and design considerations for mountain and water based & RV resorts; To explore the concept of “yield management”

Mountain Based Resorts Types of amenities at mountain based resorts Development process for mountain resorts What constitutes a desirable site? What are mountain based resorts doing to initiate a summer season? What are some common design guidelines for: Ski hills Ski runs Ski lifts Base area Food/accommodations Cross country ski areas

Amenities at mountain based resorts What are the amenities and activities often used to attract and entertain guests at mountain based resorts?

Why is it important to balance the physical capacity of a mountain with its economic capacity? What are some examples of the four types of resorts listed in this chapter?

What constitutes a desirable site for a mountain based resort? Attractiveness Climate Snow conditions Exposure Snow retention Forest cover Water supply Access to markets Limited environmental barriers (p-131 for items that need to be considered when choosing sites) Base area What are some of the considerations given for the following? Parking Access roads Food services Accommodations Other services

Ski hills – design considerations The capacity of the ski lifts needs to match what? How do ski lifts impact the economics of a ski hill?

Water-based resorts Types of amenities at water based resorts… What constitutes a desirable site for a water based resort besides water…

Amenities at water-based resorts : What types of water based resorts are there? What types of amenities are provided at water based resorts?

Water amenities and facilities at resorts may include: Natural beaches for activities such as: Sunbathing Swimming Beachcombing non motorized boating snorkeling scuba diving Lakes and rivers for activities such as: Fishing Hiking trails Golf courses Bicycle paths Interpretation facilities Canoeing Swimming Family outings

What constitutes a good site? 1. For a marina? 2. For a beach resort? 3. For a fishing resort? Work to brainstorm site considerations with your partner. We’ll develop a list of site considerations for each type of resort

Development considerations for Marinas Access Water depth Protection from winds Stable shoreline Exposure Water quality Aesthetics Fluctuations in water level Freedom from ice threats Environmental integrity

Issues in Water-based resorts Delicate balance between use and protection of water resources. Wetlands near resort settings Overuse of beaches Run-off from resorts Use of limited water supplies Public vs. private land access Vague boundaries in water areas Marine protected areas in Canada Global warming – rising water levels Commercial vs. recreational fishing Migration of species to beaches (I.e. turtles, birds)

RV Resorts Amenities for RV Resorts Site considerations for RV Resorts Design Considerations Potential issues that could effect development

YIELD Management The concept of revenue monument originated in the airline industry (I.E. travelers on the same flight all pay a different price!) Brought on the concept of revenue management!

Revenue Management Based on supply & demand Prices tend to rise when demand exceed supply, and prices tend to fall when supply exceeds demand Resorts focus on shifting from high-volume bookings to high profit bookings depending on the demand of the day!

How do resort managers know? They forecast the supply and demand and adjust prices accordingly. A common statement is “The goal of revenue management is that it involves selling the right rooms to the right guests at the right rate at the right time” AHLA, 2003

The Nanaimo Resort Example: Has 300 guestrooms, an average daily rate (ADR) of $80 per room and is currently operating at a 70% occupancy. The hotel offers 100 one-bed and 200 two-bed guestrooms. The one-bed guestroom is priced at $90 as a single and $110 as a double. The two-bed room sold as a single is priced at $100 and as a double it sells for $120.

Potential Average Single Rate Room Type Number of Rooms Single Rack Rate Revenue at 100% Occupancy 1 bed 100 $ 90 $9,000 2 beds 200 $ 100 20,000 300 29,000 Potential Average Single Rate = Single Room Revenues at Rack Rate Number of Rooms Sold as Single = $29,000 300 = $96.67

Potential Average Double Rate Room Type Number of Rooms Single Rack Rate Revenue at 100% Occupancy 1 bed 100 $ 110 $11,000 2 beds 200 $ 120 24,000 300 35,000 Potential Average Double Rate = Double Room Revenues at Rack Rate Number of Rooms Sold as Double = $35,000 300 = $116.67