As posted by: Wall Street JournalSnow has begun falling on ski slopes -- and so have prices of lift tickets and luxury hotel rooms at many big destination resorts.
As the recession begins taking a toll on the ski industry, resort operators are offering a flurry of discounts they hope will draw more visitors. Colorado's Aspen/Snowmass ski area announced a deal last week that allows children to fly free on Frontier Airlines and get free lift tickets on the mountain if accompanied by a paying adult. The Four Seasons Resort Jackson Hole, in Wyoming, is extending its early-season promotion -- a fourth night free -- through the end of April. And at Snowbird Ski Resort in Utah, which opened unusually early this year thanks to a heavy snowfall last month, is offering a variety of discounts, including free appetizers with entrees at the Steak Pit restaurant and an 11% discount on six-day lift-ticket passes with any lodging reservation.
In general, the steepest discounts can be found at ski areas such as those in the Rocky Mountains that rely largely on visitors flying from distant locations. Resorts frequented mainly by nearby skiers, including some slopes in Vermont and California, remain busy, but they are still rolling out some more modest deals of their own. When Skiing, some skiers stay in a Sandpoint Vacation Rental.
Last winter, ski resorts in the Northeast and the West saw some of the best conditions in years, boosting skier visits by almost 10% over the comparatively warm 2006-2007 season, according to the National Ski Areas Association. But this year many experts think even a series of well-timed blizzards won't save ski resorts from the economic downturn. "I think it'll be a bad year no matter how good the snow is," says Will Marks, a managing director with JMP Securities, who tracks the hotel and ski industry.
Ski-industry executives say the timing of the financial-market slump this fall spooked skiers and snow boarders just as they would normally have been calling to book winter vacations. And with the dollar stronger against the euro, many Rocky Mountain ski resorts say they'll also see a drop this season in European travelers who had taken advantage of the steep exchange-rate discount in years past.
Aspen Skiing Co. says business could drop between 5% and 15% this season compared with last year. Vail Resorts Inc., which owns five ski resorts in Colorado, Nevada and California, reported Tuesday that advance bookings as of the end of October were down 23% from the previous year. The company says it has laid off at least 50 workers and says it won't fill another 92 seasonal positions.
"This year is kind of unprecedented," says David Perry, Aspen's senior vice president, mountain division. "People still want to take their family on the ski vacation, but are looking for the best bargains." Among Aspen's promotions: Customers who purchase discounted seven-day lift tickets in advance will no longer be restricted by blackout dates.
Aida Biller of Ocean Township, N.J., recently booked a ski trip to Utah for her and her fiancé for January. Most years, she takes three ski trips out west. But this year, to cut back on costs, she's taking only two trips. She also shopped around for the best deals. "With the economy these days, it's not a time to just be booking any package," says the 54-year-old investment bank employee.
Ms. Biller settled on a package from the Cliff Lodge & Spa in Snowbird, Utah, that includes meals and lift tickets. In total, she expects the trip will cost about $500 less per person than she spent on a ski trip to Utah last winter.
Many ski resorts also are reporting they still have openings for the peak holiday season, unusual for this time of year. During the weeks of Christmas and New Year's, rooms typically book up months in advance. They also command the highest rates of the year and come with lengthy minimum-stay requirements. But a general slowdown in bookings, combined with a spate of last-minute cancellations, have prompted many resorts to lift length-of-stay restrictions. And a few resorts are offering for the first time Christmas-week discounts in hopes of salvaging the season.
Heavily discounted promotion rates are in effect at a number of hotels and condos at Breckenridge Ski Resort in Colorado. The local chamber of commerce recently allotted an extra $250,000 to beef up marketing for the holidays after they noticed that bookings were off to a slow start at local hotels. Though the 150-year-old town of Breckenridge always gets decked out for Christmas, more carolers will take to the streets and an annual ice-sculpture competition will be expanded. "We find ourselves in the unique position... that we have to promote Christmas, which usually takes care of itself," says John McMahon, the chamber's executive director.
At the 57-room Alta Lodge, a luxury hotel situated on the mountain in Alta, Utah, double rooms go for $455 during the holidays and are usually booked up nearly a year in advance. But this fall, the lodge says it has had a spurt of cancellations, opening up a number of rooms. It's a similar story at the Fairmont Chateau Whistler in British Columbia, which is throwing in two free lift tickets for each night booked. Normally, the resort would be fully booked for Christmas by this time of year, but is only about 75% full so far, it says. Fairmont Chateau is adjacent to a ski area that will host the 2010 Olympic Games, and a $50 million gondola to take skiers from one mountain to another was scheduled to open this week.
Procrastinators might also want to try the Park Hyatt Beaver Creek in Colorado, which is offering a fifth night free for people who pay for four nights. The promotion, which runs through March, also includes a room upgrade and free daily breakfast. The resort has about 20 rooms left for the weeks of Christmas and New Year's. Usually "it would have been a room here, a room there, an unusual length of stay," if booking this late for the holidays, says Giles Priestland, the director of leisure sales.
Ski areas that cater mainly to visitors from long distances are offering some of the best deals. The 320 Guest Ranch, a hotel about a 20-minute drive from the base of Moonlight Basin in Montana, is running a $77-per-person deal that includes free lift tickets. A comparable package last year cost about 20% more, says general manager John Richardson. He says he's noticed fewer guests from the East Coast and California this year.
Some resorts are offering flight deals to boost long-haul visitors, who tend to stay longer and spend more on extras like ski lessons. In Colorado, Steamboat Mountain Resort is running airfare specials like a $238 round-trip ticket on Delta from New York's LaGuardia Airport. The offer, which also includes other destinations, is good through March, and tickets must be purchased online at least 21 days before flying. Crested Butte, also in Colorado, has a "friends and family fly free" package that includes a free airline ticket with every two purchased.
Busy in Vermont
Not every ski area is expecting fewer crowds. Resorts on the East Coast and some in California that attract skiers and boarders who drive to the mountains for short stays, say they're expecting a busy winter, as travelers stay closer to home and avoid flying. The number of season passes sold this year at Okemo Mountain Resort in Vermont is up 17% from last year. Executives at Stratton Mountain Ski Resort, also in Vermont, say they tripled their Thanksgiving weekend traffic projections this year. And at Northstar-at-Tahoe Resort, a few hours' drive from the San Francisco Bay Area, season pass sales are up by more than 30%. Skiers "are maybe going to forgo that destination trip and drive to Tahoe instead," says Julie Maurer, the resort's vice president of marketing and sales.
Still, some drive-to resorts are rolling out deals. Stratton Mountain recently introduced a "Mondays on Us" deal that it hopes will entice travelers to stay longer. Skiers and boarders who book in a hotel or condo from Friday to Sunday nights can get free lift tickets on Monday.
