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Home > Consumer Products > Consumer Products & Retail > Sports and Recreation
Ski Facilities
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The US ski resort industry includes about 350 companies, over 400 ski areas, and combined annual revenue of $2 billion, not including hotels or real estate. Major companies include Intrawest, Vail Resorts, and Booth Creek. The industry is highly concentrated: the 50 largest firms earn over 80 percent of industry revenue and own 20 percent of ski facilities. Most ski areas are independently owned and operated.
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 around $45,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services at ski resorts are facility use, sales of food and beverages, instruction fees, merchandise sales, and equipment rentals. About 60 percent of industry revenue comes from usage or admission fees (including lift tickets); less than 15 percent from sales of food and beverages; 10 percent from instruction fees; and 10 percent from merchandise sales and equipment rentals. Additional revenue can come from membership dues, arcade machines, concession fees, and advertisement and endorsement fees. In addition to skiing-related services, some companies also rent or sell condominiums or houses at ski areas, but usually through a ...
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