Modernization: The Ski Industry
Insight from Natalie Gagnon, originally published on March 9th, 2021.
In a world of advancing technology, dynamic social cultures, and a recently disrupted economy, it is essential for businesses to adopt the ideas and practices of modernization. A controversial process, due to its disintegration of traditional customs, modernization is used to evolve and improve certain outdated aspects of society to increase public interest. Specifically within the winter sports industry, ski resorts have been modernizing in order to survive against competitors and battle the effects of the pandemic.
There are many contradicting arguments within the ski community regarding large ski corporations such as Vail Resorts buying-out multiple family-owned resorts and essentially monopolizing the industry. One argument is in favor of large corporations and claims that they are beneficial to the industry because they boost public demand. The other is against large corporations since they change the appearance and culture of the resort. Vail has been put under scrutiny over the past decade as it has acquired ownership of at least 30 new ski resorts including Park City Mountain Resort, Whistler Blackcomb, Stowe Mountain Resort, and Okemo Mountain Resort. These purchases have put Vail and other large ski corporations under a public spotlight, as the ski community watches the changes being made to their beloved, local mountains.
Although resort giants may change the identity of the mountain’s they are buying-out, they are also modernizing the industry for the better. From an economic standpoint, Vail Resorts is benefiting independent resorts as it increases export tourism revenue through the use of multi-resort passes. Due to affordability of the passes, skiers have become more attracted to modern, corporate-run resorts. One of Vail’s largest purchases was the acquisition of Whistler Blackcomb Ski Resort for around $1 billion in 2016. Whistler Blackcomb was immediately added to the Epic Pass, inviting over 750,000 pass holders to the mountain. Out of those pass holders about 8% visited Whistler making it “the most-visited mountain resort in North America…” Since more consumers are buying multi-resort passes, the price of the tickets are able to decrease, saving skiers “more than 40 percent compared to lift ticket window prices.” The advantages of the pass include saving skiers money and increasing general participation at the resort, which also brings an influx of capital to local businesses.
Although modernization may break tradition, it benefits economies of scale and is a necessary aspect of sustaining a business. According to IBISWorld, as the pandemic subsides, the ski industry will be able to recover in the next 5 years. This is in part due to a probable increase in domestic and foreign travel over the next few years, but is also because of the anticipated continual expansion of large ski corporations, such as Vail Resorts and Alterra Mountain Company. By modernizing and acquiring more mountains, large corporations bring resilience to the ski industry while advancing and stimulating the economy.
Sources:
“Industry Outlook.” IBISWorld, 2021, my.ibisworld.com/us/en/industry/71392/industry-outlook.
Pearson, Natalie Obiko. “Is Vail Resort’s Killing Whistler’s Spirit?” Bloomberg.com, Bloomberg, 9 Apr. 2018 www.bloomberg.com/news/articles/2018-04-09/is-vail-resorts-killing-whistler-spirit.
PR Newswire. Friday, Nov. 17 is Opening Day for North America’s Most Iconic Ski Resorts. PR Newswire US. http://libproxy.unh.edu/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=bwh&AN=201711141301PR.NEWS.USPR.LA44604&site=eds-live. Published November 14, 2017. Accessed October 24, 2018.
“Vail Resorts.” Wikipedia, Wikimedia Foundation, 13 Oct. 2018, en.wikipedia.org/wiki/Vail_Resorts.
Natalie Gagnon is a Junior from Falmouth, Massachusetts pursuing a degree in Business Administration with a dual-focus in Finance and International Business with a minor in Philosophy. Over the summer she worked on a ferry boat traveling between Cape Cod and Martha’s Vineyard as a Bartender. This semester she is looking forward to managing the Rines Insights blog and skiing on the weekends.
