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Still a Downhill Descent

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Presentation on theme: "Still a Downhill Descent"— Presentation transcript:

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2 Still a Downhill Descent
Snow sports and ski resorts’ many challenges – climate change, drought, weather and an aging audience, among others – were evident from the 5% decrease in skier and snowboard visits during the season, or a total of 53.6 million. Lack of snowfall was the biggest cause, as the amount across the nation was 28% less than the average, and even worse in California, as it faced the beginning of the fourth straight year of serious drought conditions. Ironically, the heavy snowfall in the East and colder temperatures in the Midwest made it more difficult for skiers in those areas to participate, which reduced lesson volume and average visit per season pass holder.

3 Some Lifts Working Viewed from a different perspective, the 53.6 million skier and snowboard visits during the season were 5.1% more than the recent lowest season of , and its 51 million visits. International snow sports enthusiasts totaled 6% of all visits to American ski areas, compared to 5.6% for the season. This is particularly significant given the strength of the US dollar, which typically retards international travel to the US. Despite the California drought, the nine largest Tahoe Valley ski resorts were able to attract 2.72 million visitors who spent $427 million during the season.

4 Spending More to Look Good on the Slopes
Despite fewer skiers on the slopes, total snow sports market sales – apparel, equipment, footwear and accessories – increased 8% during the period, August–November 2014, while units sold increased 7%, or a grand total of $1.46 billion. Apparel recorded the largest increase, 14.8% to $914.3 million, with footwear a close second, at +14.5% ($65.5 million). Experiencing declines were accessories, -5.2% ($41.6 million) and equipment, -2.8% ($436.4 million). Sales of snow sports products for women were particularly robust, increasing 12% to $461 million: AT equipment, +40%; cross country equipment and headwear, +23% each; outerwear, +18%; and gloves and mittens, +17%.

5 Wintery Repeat Temperatures will be colder than the average across the Atlantic states, eastern Great Lake states, the Tennessee and Mississippi Valley and the Gulf Coast. Once again, New England will register some of the coldest temperatures east of the Mississippi. The greatest snowfall is forecast for New England; Great Lakes states, including the Ohio Valley; and Central states, to the US-Canadian border. Mid-Atlantic states will also receive a significant amount of snow. Residents of Northwest states should prepare for a wet winter, which should help the snowpack at higher elevations; however, California, Nevada, Utah and Arizona will be drier than normal, which doesn’t bode well for California ski resorts for another season.

6 Fighting a Brisk Headwind
As noted in previous Ski Resorts Profilers, climate change is the industry’s biggest challenge. If the current energy consumption and greenhouse gas emission levels continue, then snow depths in the West could decrease 25 to 100% by 2100. The severe drought conditions in California are predicted to persist, and it’s the second-most-popular destinations for skiers and snowboarders. Five or more of the smaller ski resorts had to suspend operations during the season for lack of snow. The other major challenge that the industry still hasn’t overcome is the transition to a younger audience, or Millennials, which are approximately 34% of all regular travelers and has $430 billion in annual disposal income.

7 Advertising Strategies
Suggest that ski resorts in your market DMA run spots during every Thursday and Friday evening local news with footage of the current snowpack and a weekend-only discounted package of lift ticket or season pass, refreshments/restaurant coupon or other items. Television and Pinterest and other social media sites are the perfect combination for local snow sports specialty shops and chains to grab a larger share of the growing apparel, equipment, footwear and accessories market during Q and Q Since group activities are very popular among Millennials, ski resorts can use TV and social media to promote discounted packages for groups of 5, 10, 15 or more for the post-Christmas period and again during late January and February.

8 Social Media Strategies
Pinterest is an absolute-must for snow sports specialty and chain store retailers that offer women’s apparel. Multiple pins should be created and changed/updated weekly or bi-weekly. Use promotions and social media to attract visitors and promote discounts. The ski resort environment is a perfect venue for live online streaming programs via Periscope or Meerkat. Hire a local, young and professional announcer to host the live stream and promote the opportunity to be a guest on TV and social media in advance of the date. Ski resorts should use Facebook, Twitter and Instagram to invite guests to share their photos and videos of their fun at the resorts throughout the winter season. Hold periodic contests and invite social media visitors to vote for the most outrageous photo or video.

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