Profits & Power: The Changing Economic Landscape of America’s Ski Slopes
By Anthony Amaro ’27, Associate
When most people picture Vail, Colorado, it’s not usually the small town nestled among the green peaks of the Rockies in summer that comes to mind. Instead, it’s the snow-capped mountains and bustling ski slopes of winter, drawing crowds from around the world year after year. Vail Ski Resort is just one of the 336 ski locations open to the public nationwide today, contributing to a multi-billion-dollar industry that thrives on both tourism and local economies. But the economics of ski resorts extend far beyond their winter allure. Balancing seasonal demand, infrastructure investments, and year-round sustainability efforts are crucial for their long-term success.
The winter of 2023 was a record-setting season for many of the most popular ski destinations in the US, particularly out West. Over New Year’s weekend, Vail, Steamboat Springs, Park City, and Beaver Creek charged $299 for single-day lift tickets: the highest price ever recorded for a single day of skiing. Over the past six seasons, skiers have seen nearly a 50% increase in ticket prices, even as snowfall has steadily declined nationwide. Despite these rising costs, US ski resorts welcomed 65.4 million skiers and snowboarders in 2023, the highest number ever recorded in the industry. This raises the question: how do resorts keep people coming back, and what does record-breaking revenue mean for the future of the industry?
Just last year, the US ski and snowboard market reached its largest size, with resorts across the country taking in an estimated $5.53B in net revenue (with $2.2B coming from Vail Resorts corporation alone). This number is only expected to grow with a projected 1.3% CAGR from 2024 to 2030. One might expect the record-breaking ticket prices mentioned earlier to be an easy explanation for this growth, but ticket sales are only a small part of many mountains’ revenue each season. Season passes, such as Vail Resorts’ Epic Pass and Alterra’s Ikon Pass, have become game changers in the ski industry, growing from 1.2 million to 2.4 million holders in five years, a whopping 95% increase from pre-pandemic seasons. Introduced in the late ’90s, season passes allowed consumers to buy a lift ticket, valid the whole season, for a large sum at the beginning of the year. These passes have become extremely popular, and account for a large portion of many resorts’ revenue. This model provides predictable revenue and has become a major product in helping to mitigate risk for resorts worried about snowfall.
Beyond lift tickets, about 35% of a resort’s revenue comes from non-ski-related services. In 2022, the average lodging revenue totaled 15% of the resort’s annual revenue, while retail and dining contributed an additional 10%. Resorts also benefit from year-round operations; summer activities like mountain biking and hosting festivals draw more people to the resorts in the off-season, with some mountains reporting a 24% increase in summer business over the past three years. By diversifying activities on the mountain, resorts also diversify their customer base, welcoming visitors less interested in skiing or snowboarding. Many of these ancillary activities have been brought forth as legitimate revenue streams, giving some resorts, such as Vail Resorts most notably, the ability to transition from a private entity to a publicly traded company on the NYSE. Today, Vail Resorts owns 41 ski mountains globally, managing the slopes, gondolas, rental stores, hotels and condos, and even gourmet restaurants.
As a result of this booming economic growth seen throughout the past decade, resorts are making efforts to implement more sustainable practices into their everyday operations. Although sustainability has not been a primary focus of mountains in the past, industry organizations such as the National Ski Areas Association (NSAA) are working hard to provide meaningful change to the industry and the environment. The push for ski resorts to adopt sustainability practices gained momentum with the NSAA launching the Sustainable Slopes program in 2000. Updated in 2020, this program provides a framework for ski areas to identify key actions, improve operational efficiency, and advocate for climate action. Over 200 ski areas nationwide have endorsed the program. Additionally, the NSAA introduced the Climate Challenge to help resorts track, reduce, and manage their greenhouse gas emissions. Around 55 ski areas participate, with requirements for annual emissions reduction projects and climate advocacy.
In summary, key players in the US ski industry have proven their ability to adapt by diversifying their revenue streams, increasing passholder loyalty, and investing in year-round operations. However, the long-term viability of these resorts is going to hinge not only on their financial success but also on their commitment to sustainability. As climate change increasingly threatens the snowfall and skiable terrain not only in the US but around the world, the industry’s future will depend on its ability to balance profits with environmental stewardship, ensuring that the slopes will remain a destination for generations to come.
Anthony Amaro is a Sophomore from Londonderry, NH, pursuing a degree in International Business and Economics. He is actively engaged on campus, participating in the UNH Sports Analytics Club, Ski & Board Club, and UNH Club Golf. With a passion for team leadership, sustainability, and project management, Anthony is dedicated to making a positive impact both on campus and in the broader community. Currently, as a second-semester associate in the Rines Angel Fund, he is eager to deepen his expertise in investment analysis and contribute effectively to his team’s success.
