Ski Facilities

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate recreation areas used for downhill and cross-country skiing. No major companies dominate the industry.

The US ski facilities industry includes about 350 companies that operate about 400 ski areas with combined annual revenue of about $2 billion. Moderate growth is forecast for the next two years. Consumers' disposable income and trends in recreation are key demand drivers.

Companies that operate ski lodges and resorts -- facilities with overnight accommodations for guests -- are not included in the industry but are covered as part of the hotels and resorts industry. However, major resort operators such as Vail Resorts, Aspen Skiing, and Intrawest are significant competitors within the skiing industry.

COMPETITIVE LANDSCAPE

Good snow conditions and personal income drive demand. The profitability of individual companies depends on effective marketing and efficient skiing and business operations. Large companies have advantages in marketing and in sharing resources and staff among multiple skiing sites. Small companies can compete effectively by catering to the local population or providing customized services. The industry is concentrated: the top 50 companies account for about 80 percent of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services at ski facilities are facility use, food and beverage sales, instruction fees, merchandise sales, and equipment rentals. Usage or admission fees (including lift tickets) account for 60 percent of revenue; about 10 percent comes from meals and beverage services; 10 percent from instruction fees; and less than 5 percent from merchandise...