A Rocky Mountain respondent said, “Summer as a standalone is not prof- itable. It does provide an offset to the losses that a resort experiences during non-winter operations.” Often, operators look at break-even or loss activities as supporting other revenue sources, which may not be cal- culated into summer profitability. “The break-even activities build broader sup- port for other summer and winter pro- grams,” said one Northeast mountain. “We organize theme days and spe- cial events for our guests. We use them as a value-added service, keeping fami- lies coming back year after year,” said a Southeastern resort. While profit is a standard KPI (key performance indicator), when asked to evaluate several statements in relation to their summer business, only 60% of respondents agreed or strongly agreed that “profitability is the first measure of success in summer business.” The remaining 39% disagreed or strongly disagreed with that statement. Alternative metrics. Responses to the value statements offer clues into alter- native metrics resorts may be using to cal- culate the ROI on summer operations. For example, the impact of summer business on hiring and staff retention achieved the greatest consensus among respondents, with 95% agreeing or strongly agreeing that summer business improves hiring and staff retention. Given how labor-intensive the moun- tain resort industry is, an improved abil- ity to hire and retain staff has obvious impacts for winter operations, such as reduced onboarding and training hours and fewer departmental staffing gaps. That this was the most agreed upon state- ment regarding summer business speaks to the 365-day nature of modern moun- tain resort operations, but also to the fact that summer operations are still largely considered in relation to how they can support or offset winter business. As one respondent from a Northeast resort noted, “The operating window for summer operations is profitable, howev- er, when you layer in the shoulder sea- sons, summer becomes a break even. It supports the needed year-round cash flow and creates summer and year-round employment opportunities.”
Just behind hiring and retention, 92% of respondents agreed or strongly agreed that summer business attracts new user groups (while only 60% agreed or strongly agreed that summer offerings are important to winter guests). More than 90 percent of respondents
more and more important for areas that operate in more volatile climates,” observed a Northeast operator. “Summer-focused activities will blend further into the shoulder seasons, potentially even add onto the winter experience, [and] ultimately continue the
“OUR PLAN IS TO BRING SUMMER OPERATIONS REVENUES TO ABOUT HALF THAT OF WINTER REVENUE IN THE NEXT 10 YEARS. THIS WILL REQUIRE SUBSTANTIAL GROWTH IN OUR SUMMER PRODUCT OFFERING.”
agreed or strongly agreed that summer business supports the local community. Those community benefits can be real- ized in a variety of ways: employment opportunities; activities or programming geared toward locals; an activity mix that complements offerings in the broader community, etc. While alternative success metrics are important performance indicators, finan- cial goals are necessary for the growth of summer business. “Setting and monitor- ing financial goals is just sound business,” said Humber, “even if profitability metrics reflect other considerations.” As operators review their summer activity mix, they must weigh the cost/ profit of an individual activity against its value in the bigger picture. For example, does the cost of operating this activity exceed the benefit of the food and bev- erage purchases it supports? Does the space this summer offering takes up limit the potential for other growth? Growth goals. Looking ahead, respondents said they aim to grow sum- mer revenue. “Our plan is to bring summer operations revenues to about half that of winter revenue in the next 10 years. This will require substantial growth in our summer product offering,” said one Northeast respondent. “We will double summer business as a way of diversification,” said a respon- dent from a Midwest ski area. CLIMATE CHANGE IMPACTS With shorter winters and increasingly higher temperatures in summer, opera- tors should think long-term and poten- tially prioritize year-round business. The opportunity is there to become an estab- lished summertime attraction. “[Summer business] will become
trend of a 12-month focus,” said another in Western Canada. “Summer-centricity is very import- ant to us and has been for over 30 years. Climate change and cyclical winter snowfall highlights the need to diversify operations into more year-round/sum- mer activities,” said a third operator in the Pacific Northwest. Historically, mountains were a sum- mer escape. City dwellers left the oppres- sive heat to enjoy cooler temperatures up in the mountains. This trend dwindled slightly with the advent of air condition- ing. However, the post-Covid desire to be outside has the potential to push people toward cooler recreation locations such as lakes, the beach, and of course, the mountains. “As summers get hotter, we should see more people wanting to rec- reate at elevation, where we are typical- ly 15 degrees cooler than the valley,” said one Rocky Mountain region respondent. WHERE DO WE GO NOW? There is a huge opportunity to capitalize on the non-winter months, but there is also more competition in the market- place in summer. A “build it and they will come” mentality no longer works. “Our region draws five times the [summer] visitation as winter, yet we do about 20% of our business in the sum- mer. With additional attractions, there is more opportunity to balance our sea- sons,” said a Northeast operator. To take adavantage of the opportuni- ty, ski area operators must be at least as thoughtful and strategic in their approach to summer operations as they are to win- ter operations to build and create memora- ble, profitable, and on-brand experiences that are specific to their unique location, community and culture.
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