Skiing Facilities

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 300 skiing facilities in the US operate downhill, cross-country, or related skiing areas and/or operate equipment, such as ski lifts and tows. These establishments often provide food and beverage services, equipment rental services, and ski instruction services.

Highly Seasonal Demand

Peak ski season generally runs from mid-November through mid-April.

Struggle for Growth

The snow sport industry has struggled for about a decade to grow participation.

Industry size & Structure

The average skiing facility employs about 160 workers and generates $12 million annually.

    • The skiing facility industry consists of about 300 firms that employ about 48,000 workers and generate $3.6 billion annually.
    • Industry revenue is highly concentrated; the top 50 companies account for 86% of industry revenue. However, the resort market is fragmented; less than 20% of the roughly 480 ski resorts in the US are owned by companies with four or more properties.
    • Large firms include Vail Resorts, Aspen Skiing, Alterra Mountain, Powdr Corp., and Boyne Resorts.
                                Industry Forecast
                                Skiing Facilities Industry Growth
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Nov 13, 2024 - Services Sector Expands, Employment Up
                                • Economic activity in the services sector expanded for the fourth consecutive month in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September. Fourteen of the 18 services industries reported growth in October including Retail Trade; Information; Transportation & Warehousing; and Accommodation & Food Services. Industries reporting a contraction in October were Other Services; and Management of Companies & Support Services. Fifteen of the 18 services industries reported an increase in prices paid during the month of October, including the Arts, Entertainment & Recreation; Retail Trade; and Wholesale Trade industries. According to data from the US Bureau of Labor Statistics (BLS), employment by skiing facilities was up 46.1% in September 2024 compared to a year ago. Average wages for nonsupervisory employees at skiing facilities reached $27.67 an hour in September 2024, which was 2.7% higher than the previous year.
                                • Utah-based POWDR recently sold the largest ski resort in New England to a local independent ownership group led by Phill Gross and Michael Ferri, according to the New England Ski Journal. Upon the deal’s finalization, the Killington Resort in Vermont announced new investment projects valued at more than $30 million, including snowmaking investments, lift replacements, gondola revitalization, and a mountain bike trail expansion. The new ownership group includes 16 investors, and POWDR and Great Gulf will remain as minority investors. The deal, which includes nearby Pico Mountain, closed in September 2024, and the sales price was not disclosed
                                • Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
                                • Occupancy at Western mountain destinations is on pace to climb 5% year over year for the 2024 summer season (May to October), according to the latest Market Briefing by DestiMetrics, as reported in Ski Area Management. The average daily rate (ADR) was $401, up 2.1% compared to last summer. If the current trends in occupancy and rate hold, summer revenues are expected to post a 7.3% increase year over year. The growth comes as travel returns to pre-pandemic patterns, even as some prices have dipped due to consumer price concerns. Occupancy in June 2024 was up 3% over June 2023, and the booking pace was up 13.6%. The June 2024 ADR was up 3.3% over the previous year, and revenues rose 6.4%. According to Tom Foley, senior vice president for business intelligence at Inntopia, “Bookings during June were reliable and widespread, although not quite as strong as they were during May. Rates seem to have settled into a range that is comfortable for consumers.” The DestiMetrics lodging data covers 28,000 lodging units in 17 Western mountain communities across seven states and represents more than half of all available rental units in those areas.
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