Skiing has always been considered an expensive sport, with high costs associated with lift tickets, equipment rentals, and travel expenses. The CEO of Alterra Mountain Company, Jared Smith, recognizes the challenges faced by new skiers who are deterred by the high prices of day passes, which can reach up to $300 at some mountains. This poses a significant barrier to entry for those looking to get into skiing as a recreational activity.
In an effort to attract new skiers and retain loyal customers, Alterra has tasked the leadership of its 16 ski areas to come up with innovative ideas. Smith mentioned the possibility of offering all-in packages and concierge services to make the skiing experience more accessible and enjoyable for guests. Additionally, he suggested providing three free ski days to skiers who are not in the Alterra database, on the condition that they take an introductory lesson. This approach aims to lower the barrier to entry and encourage more people to experience the joys of skiing.
Smith highlighted the significant capital investment required to operate ski resorts effectively. With 230 lifts across its company, Alterra faces substantial costs in maintaining and upgrading its infrastructure. The average cost of replacing a single lift has nearly doubled in the past decade, now averaging around $15 million. These high operational costs contribute to the overall expense of skiing and can make it challenging for ski resorts to offer affordable options for guests.
Smith emphasized Alterra’s decentralized management approach, contrasting it with Vail Resorts’ top-down structure. By giving more autonomy to each ski area’s management, Alterra believes it can make better decisions and create a more authentic experience for guests. This philosophy will be put to the test when Alterra takes control of Colorado’s Arapahoe Basin, known for its laid-back atmosphere. Under Alterra’s ownership, the current COO of A-Basin will retain authority over the mountain, ensuring continuity in the guest experience.
While highlighting the differences in management style, Smith also acknowledged the positive aspects of Vail Resorts’ approach. He commended Vail for developing modern multi-mountain passes that have revolutionized the industry, making skiing more accessible to a broader audience. The competition between Alterra and Vail has led to innovations in pricing and pass options, benefiting skiers who seek affordability and flexibility in their skiing experiences.
The ski industry faces significant challenges in terms of cost and accessibility. Alterra’s efforts to brainstorm new strategies to attract skiers and make skiing more affordable are commendable. By exploring innovative solutions and maintaining a focus on customer experience, Alterra aims to create a more inclusive and enjoyable environment for all guests. As the industry continues to evolve, collaboration and competition between major players like Alterra and Vail Resorts will drive innovation and improvement in the overall skiing experience.