Ski Facilities Industry Profile

The US ski facilities industry includes about 350 companies that operate about 400 ski areas with combined annual revenue of about $2 billion. Major companies include Aspen Skiing Company and Vail Resorts. The industry is highly concentrated: the 50 largest firms generate about 80 percent of revenue.

Ski facilities that provide overnight accommodations are not included in the industry.

COMPETITIVE LANDSCAPE

Good snow conditions and personal income drive demand. The profitability of individual companies depends on effective marketing and efficient skiing and business operations. Large companies have advantages in marketing and in sharing resources and staff among multiple skiing sites. Small companies can compete effectively by catering to the local population or providing customized services. The industry is labor-intensive: average annual revenue per worker is about $60,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services at ski facilities are facility use, food and beverage sales, instruction fees, merchandise sales, and equipment rentals. Usage or admission fees (including lift tickets) account for 60 percent of revenue; about 10 percent comes from meals and beverage services; 10 percent from instruction fees; and less than 5 percent from merchandise sales and equipment rentals.

A typical ski season runs from mid-November to mid-April in the highest elevations. Facility staff members prepare and maintain trails; give skiing lessons; run restaurants and food concessions; rent, sell, and repair ski equipment; and operate onsite retail shops. Companies may outsource some services or lease concessions to third parties. During ...