The ski industry is on the rise, yet these businesses face many challenges getting snow on the slopes and people on the mountain.
Key Details
- Top skiing locations like Colorado’s Vail Resorts and Wyoming’s Jackson Hole have sold out or limited ticket sales as a growing number of ski enthusiasts flock to their locations.
- In China, ski resorts have grown from just 100 to more than 800 in two decades.
- Despite the influx of customers, ski resorts still face a challenge as they must combat growing energy prices and unexpectedly warmer seasons.
- Snowfall is predicted to decline 8% for every degree global temperatures rise, The Hustle reports.
Why it’s news
The skiing industry totally relies on weather to operate and draw in guests. Without predictable, sufficient snowfall, resorts may be unable to cover their operating costs.
Some technology exists to help resorts circumvent the whims of weather patterns. Already nearly 95% of ski resorts use artificial snow. New developments in snow production have helped make it more energy efficient, but the growing demand for fake snow has increased energy costs.
Some resorts are raising prices significantly to combat the climbing costs, but other resorts are diversifying their interests. French resort Compagnie des Alpes is shifting some of its focus to amusement parks and skiing retail stores.
In some cases, resorts choose to change locations by investing in alternatives at higher altitudes where snowfall is more consistent. Some resorts sell multi-access passes so that guests can choose the resort with the best snowfall at that point in the season.
Vail resorts introduced its Epic Pass in 2008, which gives customers seasonal access to all locations. Last year, the resort sold over 2 million passes and reported over $347 million net income.