tion increased visitation, revenue, and therefore profit, which funds additional capital projects that enhance the guest experience and drive more visitation. Adapt but remain disciplined. While there have been adjustments along the way, much of the 2012 plan has been implemented, and the area continues to see positive returns. Thody and Strauss continue to refer to the plan as they balance the ongoing challenge of funding annual capital maintenance projects with scheduling the remaining capital investments proposed. The 2012 plan provided valuable con- sistency to the area’s decision-making pro- cess and helped clarify the business case for getting bank loans for major capital projects, such as the new 49,000-square- foot chalet, built in 2017. The team’s dis- ciplined data collection demonstrates the value and sustainability of the existing operation and projects how the addition- al investment will continue to maintain and grow this financial viability. Sometimes, plans evolve. Simi- larly, MacNeil and the Poley team believe that long-term success lies in a near-term focus on the fundamentals, to maximize the efficiency and returns of the current operation and provide a solid foundation for future growth. Poley began its strategic business planning in the early 2000s with an assessment of its winter operation and then evolved into long-term planning for year-round business. Industry bench- marking provided insight and clarity: it highlighted issues related to pricing, operational efficiency, snowmaking capacity, and long-term infrastructure planning. For Poley, the longer-term invest- ment on the horizon is replacing its quad lift, the workhorse of the operation. This replacement project is a five-year goal. The leadership team is currently explor- ing funding for it. Regardless, MacNeil noted, “you have to have a plan, even if the future is uncertain.”
Poley’s financial reporting is orga- nized to correspond to industry-available data, such as the annual NSAA Economic Analysis of United States Ski Areas , so that the team can more easily use it for annu- al benchmarking. While U.S. data isn’t a perfect comparison for Canadian ski areas, the EA is the most granular report of its kind, making it very useful for ski areas in both countries. An additional benefit: this tight financial discipline builds and maintains lender confidence. Data drives decisions. At Boler, Greg Strauss, managing director of administration and finance, has been col- lecting and analyzing departmental data every step of the way. The performance metrics established in the strategic business plan inform the area’s invest- ment-related decision-making. New programs are typically estab- lished in a modest way. The mantra: start small, watch the data, and expand once the desired metrics are achieved. This keeps operational expenses, especially labor, in line with revenue opportunities, and prevents profit from being eroded by low utilization. The bottom line: without reliable, LEFT: A new 7,400-square-foot rental shop with a rooftop patio, built in 2024, is the latest big invest- ment as part of Boler Mountain’s plan.
detailed financial data, you (and your lenders) can’t make informed, strategic decisions. Fundamental #2: Plan for Disciplined Incremental Growth The Boler team has been following a strategic business plan for more than 20 years to guide near- and long-term cap- ital improvement decisions. Its original plan articulated the opportunities for growing winter operations, which led to significant growth in visits. As men- tioned earlier, the current plan, initiat- ed in 2012, charts a 15-year course for expanding into a sustainable, year-round operation. Good data ease anxiety. “The challenge of forgoing capital injection in the core business and directing it to sum- mer is that it’s an unknown,” says Thody. The plan made that step less concerning. It evaluated the risk and quantified mar- ket demand. Those steps helped chart a path that harnessed the opportunities for additional summer offerings while maximizing operational efficiency. Ten years in, Thody says summer business has exceeded projections sev- eral years in a row. This greater utiliza- RIGHT: A desire to host groups from regional kids’ camps drove the first major investment in Boler’s strategic plan, The Treetop Adventure Course.
Using Industry Data for Benchmarking The NSAA Economic Analysis of United States Ski Areas is a great source of benchmark- ing information—for both Canadian and U.S. resorts. The EA classifies ski areas regionally and also by size (small, medium, large, and extra-large). It includes basic ski area character- istics such as annual visits plus departmental revenues and operating expenses. The data are expressed both as an average total as well as a relative “per skier visit” data point. Individual areas can use the “per visit” data to benchmark their performance against their industry peer group. For this, accurate accounting of visits is key. The value of the comparison is decreased significantly if an area under- or over-counts its visits, as that skews the area’s results. To be most useful, benchmarking should be conducted over several years of data, to elimi- nate the distortions of short-term fluctuations.
Made with FlippingBook Digital Proposal Creator