Thanks for all the free advice. We are deep in analysis locked away in one of the snowmaking bunkers so no one overhears our strategic plans which we may announce around the Ides of March.
Think Snow so we will have a fun March & April![]()
First of all everyone here is just speculating at this point (So I will too).
Secondly, nobody here seems to have taken an economics course. If the pricing is such that everyone flocks to Stowe via the EPIC pass, then both Stowe and SB will react by changing pricing. Of course they will model this out beforehand to try to set the right price initially, but if they mess up it will be corrected in season two. So don't go sell your condo based on the initial pricing!
But I believe Stowe/Vail has a very good idea of the sensitivity of season pass pricing to the demand for such passes, and that if they feel they are at capacity at current pricing then pricing will not change. In fact, if they feel demand will increase significantly due to the added benefits of the Epic pass then whose to say they don't RAISE the price for a "Stowe pass with Epic benefits"? I would.
Supply and demand in a profit seeking capitalist structure.
Thanks for all the free advice. We are deep in analysis locked away in one of the snowmaking bunkers so no one overhears our strategic plans which we may announce around the Ides of March.
Think Snow so we will have a fun March & April![]()
While you are in there, can you turn on the compressors and send shady's crew out to turn on the towers on snowball and fling on Sat so we have something soft to ski? Will be super efficient with the cold and provide more base for late April😉
I know, probably not gonna happen, but one can hope.
[QUOTE=teleo;227085]While you are in there, can you turn on the compressors and send shady's crew out to turn on the towers on snowball and fling on Sat so we have something soft to ski? Will be super efficient with the cold and provide more base for late April
I know, probably not gonna happen, but one can hope.[/QUO
Ps. We will keep monitoring
Re passes (SB, Epic, MAX, Mountain Collective): I am extremely seriously considering not renewing my family's passes for next year. My youngest just turned 13 and her pass next year will up my expenses another $300 or more. It is starting to feel like a lot of money and that there are other options out there. I often stay in Waterbury; Stowe is equidistant.
Epic and Mountain Collective are great if you are planning a trip out west. MAX is great for skiing around the east a good bit. All cost a lot less than SB passes.
Plus the gambling game on quad packs has gotten less attractive as it is starting to prove to be a poor value with last year's non-winter and this year's early melt. Without March snows or SB miraculously getting snowmaking going, my quad pack tickets seem like they'll be used for some pretty mediocre skiing provided I can convince my friends the conditions are worth the trouble to drive north. Otherwise, they'll expire again this year.
I am sure it is only me, but SB's fetish with ageist pricing for adult passes irks me and diminishes my sense of loyalty and goodwill. I am in the age group that SB has decided should subsidize the age groups that receive more favorable pricing.
So what's your solution? Charge people in their 20s straight out of college full adult prices? In which case they decide that is too much money at that point and drop out of the sport and never come back? That's exactly what was happening with the old pricing strategy and it was not painting a bright future for sustainability of the sport. Back when the For 20s was announced it was discussed that a major goal was to reverse that trend and get people to keep skiing until they are older, making more money, done paying off college debt, etc and have them hooked by that point. You're really not "subsidizing" anything. In theory even though passes like the For 20s are cheaper, they should make up for that in volume sales. I would bet good money that if you looked at how many 20-30 year olds bought full passes before vs how many buy them now with the cheaper pricing, the number is substantially higher. So even if the price is 1/3 of a full pass, if you simply triple your sales in that age category you're now bringing in the same amount of pass revenue. Increase sales further and you're exceeding your previous revenue from that age category. And now you have more people going to the mountain and potentially spending more on other things (i.e. drinks, food, etc).
On the flip side, you've benefited from a free 12 and under pass based on your comments. At many other resorts you would have been paying for that pass. That is a benefit SB has that is often overlooked when people talk purely about pass prices.
There are pros and cons to all the other passes you mentioned as well. Price is only one factor in the equation. They each can be great under the right circumstances for the right person.
coming to a vail mountain property near you....
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Win cameo on wcax. http://www.wcax.com/story/34972498/w...sses-elsewhere
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The name of the game right now is to get people on your pass. They commit before the season to using your resorts, and you have them locked in for all the other stuff -- lodging, lessons, etc. We have found the Ikon, Max, and Epic passes to be worthwhile values if you can make use of them. What we don't like is that we are locked-in to certain ski areas before we know what the winter conditions will be like.
I don't think these acquisitions are about higher rates, I think they are about getting more people to commit to the Epic pass.
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