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 113 workers and generates $10 million annually.
- The skiing facility industry consists of about 300 firms that employ about 38,600 workers and generate $3.4 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 460 ski resorts in the US are owned by companies with four or more properties.
- Large firms include Vail Resorts, Aspen Skiing, Alterra Mountain and Boyne Resorts.
Industry Forecast
Skiing Facilities Industry Growth
Recent Developments
Mar 12, 2024 - Employment, Wages Increase
- According to the Bureau of Labor Statistics (BLS), employment in the skiing facilities industry has increased by 23% from December 2022 to December 2023 and has grown nearly 21% from 2019. Wages for ski facility employees have climbed in recent years as companies compete in a tight labor market, reaching nearly $27 an hour on average in Q4. Wages are up almost 40% in December 2023 from December 2019 and nearly 15% from 2022. Additionally, Reuters reports that consumer spending levels grew in the last half of 2023, a 3.1% increase in the third quarter and 2.8% in the fourth quarter.
- According to a recent ConsumerSignals survey by Deloitte, more discretionary categories, including recreation and entertainment, leisure travel, restaurants, and electronics, represented an estimated 22% share of consumer’s wallets in January, up slightly from a year ago. According to the Spending Intentions index, global total spending intentions remained consistent in January compared to December and were significantly higher than a year ago. Spending intentions have gradually returned to their 2021 levels after inflation stunted global spending confidence. The survey also revealed that over 60% of survey respondents reported their finances had either remained the same or improved in the past year, up from 58% a year ago.
- Many ski areas in the US have their fingers crossed for a windfall of snow at the start of 2024, with unseasonably warm weather affecting much of the country, according to Ski Area Management. According to the article, “December 2023 was one of the warmest on record for the United States, and holiday numbers were down at many areas.” Most ski operators had to use their snowmaking capabilities to combat the uncooperative weather. One region with robust snowfall was Alaska, which was setting new snowfall records at some locations. The Pacific Northwest, the Midwest, and the Northeast have been battling poor conditions, including low snowfall, warmer weather, and rain events.
- Skiing facilities will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
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