Struggling for Forward Momentum

2. Struggling for Forward Momentum • The good news for the snowsports industry is that total visits for the 2015–2016 season increased a very modest 0.06% to 53.9 million from the previous season’s 53.6 million; but this is well below the recent peak of 60.5 million during the 2010–2011 season. • There were 470 US ski resorts operating during the 2014–2015 season (latest data), which was the same as the 2013–2014 season. • It was the western US regions that were responsible for the small total increase in visits: Rocky Mountain region, +8%; Pacific Northwest region, +142%; Pacific Southwest region, +53%. Weather caused decreased visits in the eastern half of the country.

3. Stop-and-Go Participation • Snowboarding participation declined 0.02% for the 2015–2016 season, with all six regions recording decreases: Northeast, -0.3%; Southeast, -0.9%; Midwest, -0.8%; Rocky Mountains, -0.2%, Pacific Southwest, -1.9%; and Pacific Northwest, -4.7%. • According to the Physical Activity Council’s 2016 Participation Report, winter sports had the lowest participation rate, at 7.4%, which was 45% less than racquet sports, at 13.5%, and 48% less than water sports, at 14.2%, the next lowest sports groups. • What should be a concern for the snowsports industry is that neither youth, 6–12 and 13–17, and adults, 18–24, 25–34, 35–44 and 45+ listed any snow sport in their top-10 list of aspirational activities in Outdoor Recreation’s 2016 Participation Report.

4. Equipment Consumption Disruption • According to Snowsports Industries America’s latest report, snowsports products purchased through all channels totaled $4.68 billion for the 2015–2016 season (August 1–March 31), a 0.02% decrease from $4.70 billion for the 2014–2015 season. • Of the 4 categories of products measured, only equipment increased, by 3.3%, to $925.3 million; outerwear was unchanged, at $1.78 billion; apparel accessories declined 3.3% and equipment accessories declined 4.9%. • As is the case for many retail sectors, snowsports product purchases increased 4.2% in the online channel for the 2015–2016 season while sales at chain stores decreased 3.4% and sales at snowsports specialty stores were unchanged from the previous season.

5. Transforming First-Timers into Long-Termers • In an attempt to understand beginner snowsports participants and maximize their return to the slopes, a 2015–2016 survey from RRC Associates found that 69% of skiers and 73% of snowboarders had fun during their most recent visit to a resort. • The survey results also revealed that 83% of the respondents rented their equipment (72% at the resort) and 89% said they or their child took a lesson, with 86%, group lesson, and 14%, private lesson. • 67% of skiers and 74% of snowboarders said they were likely to ski or snowboard next season (2016–2017) and 60% of skiers and 67% of snowboarders said they were likely to return to the same resort.

6. The Race to Replace • The snowsports industry is faced with the challenge of adding approximately two young adults for every older adult who becomes too old to participate, based on 2015–2016 season average days of 4.8 for Millennials and 7.7 for adults, 50+. • The RRC Associates survey, in which Millennials were the largest group of respondents, revealed the top 4 barriers to participation may have a greater effect on Millennials than older adults: travel distance/time, overall costs, time commitment and work schedule. • Millennials’ household income may be the primary underlying reason, as National Ski Areas Association data found that 50.2% earn less than $50,000 annually, compared to just 7.1% of younger Baby Boomers and 11% of older Baby Boomers.

7. Counting on a Cooperative Weather Forecast • According to forecasts for winter 2016–2017, the El Niño pattern is expected to become a low-grade La Niña, which is likely to bring heavier snow to the Pacific Northwest, northern Intermountain West, Great Lakes and possibly areas of the Northeast. • One forecast is for Mount Hood, Mount Baker and Mount Rainier in the Pacific Northwest to have a 130% average snowfall; Jackson Hole and Grand Targhee, 120%; and Jay Peak, Sugarbush, Sugarloaf and Killington in the Northeast, 100%. • The Old Farmers’ Almanac is predicting colder than normal temperatures and near-normal snowfall in the Northeast. The snowiest periods in the Rockies will be late November, early and mid-December and mid-January.

8. Advertising Strategies • Ski areas may find it beneficial to create a children’s/family sledding slope with a low ticket price, since 13 million kids go sledding, but only 25% of them become skiers. Offering a group lesson as part of an affordable bundle could generate more interest. • Ski areas within a short drive of major population centers should consider bundling a pass/lift ticket with a ride-sharing service (Uber, Lyft, etc.) to attract more Millennials, especially living an urban lifestyle without a vehicle. • Another strategy to attract more Millennials and other adults is to partner with nearby festivals and food and music events with co-marketing efforts that may include a skiing presentation at a festival and/or part of the festival staged at the ski area.

9. New Media Strategies • Ski areas must understand that Millennials are more likely to enjoy activities as a group, so it’s important to identify influencers and send him or her a special offer that is then shared among the group through social media and texting. • Ski areas should consider partnering with a warm-weather sport, such as bicycling or boating, and create co-marketing social media programs with visual and other content to attract participants from the other sport during its off-season. • Encourage beginners to post photos and videos of their experience, providing specific reasons they tried snowsports and why they expect to return. Give each beginner who posts a discounted pass/lift ticket for his or her next visit when bringing a friend.