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FIGURE 3 Average Total, Average Winter & Average Ticket consumer paid about 58 cents on the dollar for a ticket
Revenue per Skier Visit (when compared to the cost of a full price adult lift ticket).

2016–17 2017–18 Change The decline in ticket yield ratio indicates that the increase in
Average Annual Revenue/Skier Visit ticket prices (up 6.6 percent this year) has outpaced ticket
180
revenue per skier visit (up only 4.3 percent).
150 +9.4% +13.5%
+7.6% +5.6%
120 +3.1% -6.9% 134.2 135.03 Improvement in ‘Health’
Dollars 90 110.47 118.82 113.48 119.87 122.64 119 +9.1% Health (debt to cash flow) is a rough measure of the number

60 91.54 94.39 99.67 92.79 of years that would be required, in theory, at current levels
58.57 63.89
30 of cash flow to retire current levels of long-term and subor-
0 dinated debt. In 2017–18, long-term debt was down, though
Overall Northeast Southeast Midwest Rocky Mts. Pacific SW Pacific NW
cash flow was also down (although to a lesser degree).
Average Winter Revenue/Skier Visit
150 Therefore, health declined to 0.8 from 1 percent the year
+8.9% +10.1%
120 +6.5% +3.6% +4.7% before. In other words, the industry would require about
nine-and-a-half months to retire the current level of long-
Dollars 90 99.94 106.4 82.11 85.1 96.29 100.87 -11.4% 70 111.79 121.69 110.02 121.18 +8.6% term debt at current cash flow levels.
79.05
60
30 57.99 62.96 Decline in Operating Profit on Gross Fixed Assets
Nationally, operating profit on GFA dropped to 14.6 percent
0
Overall Northeast Southeast Midwest Rocky Mts. Pacific SW Pacific NW from 16.9 percent the year prior (operating profit was basi-
Average Ticket Revenue/Skier Visit cally flat and gross fixed assets rose by 3.8 percent, resulting WE CALL IT
100
in a decline in the return-on-assets ratio). Operating profit
80
+4.6% +10.1% return on GFA was up in all six geographic regions and in
+4.3% all four size groupings. KNOW-HOW.
Dollars 40 52.51 54.76 +3.5% +0.7% -0.4% 61.47 64.32 59.53 65.56 +10.4%
60

This ratio measures the effectiveness with which resorts can
20 38.64 40.01 40.24 40.51 31.47 31.35 36.75 40.58 Increase in Revenue per Employee MORE THAN 80.000
0 generate revenue with the employee base, and allows for a
Overall Northeast Southeast Midwest Rocky Mts. Pacific SW Pacific NW
comparison between resorts of different sizes and in different TECHNOALPIN
and beverage, lessons, equipment rentals, accommodations/ regions of the country. Gross revenue levels were up 5 percent
lodging, and others) per visitor. Total revenue per visit was but the number of total employees was up only 3.1 percent;
up strongly to $118.82, a 7.5 percent increase over the the combination of these two figures resulted in an increase of AIR WATER GUNS
$110.48 per visit reported the year prior (fig. 3). 1.9 percent for revenue per employee ($34,513). This result
indicates that ski areas were able to generate a greater level of INSTALLED ALL
Increase in Winter Revenue per Visit top-line revenue relative to the number of employees.
A new metric this year, winter revenue per downhill snow-
sports visit, calculates revenue from the ski season divided The results of the Economic Analysis show a generally suc- OVER THE WORLD.
by skier visits—a more pure winter metric than total revenue cessful operating environment during the 2017–18 season,
per visit. The figure averaged $106.40 this season, up 6.5 though results varied by region of the country. Nationally,
percent from the year before. total annual gross revenue, total revenue per visit, and
winter revenue per visit were up. As well, revenue in all -70% air consumption The newest generation of TechnoAlpin air water guns
Slight Decline in Ticket Yield Ratio major departments was up. However, growth in operat-
The percentage yield on tickets is the ratio of ticket revenue ing expenses outpaced the increases in revenues, resulting reduces the air consumption by -70%, increasing the snow volume.
per visit to the reported adult weekend lift ticket price— in lower profit margins (both operating profit margin and This makes TechnoAlpin air water guns being the top performer on the market,
another important indicator of the financial health of the pre-tax profit margin). These national trends are encourag- proven by more than 80.000 guns installed all over the world.
industry. Ticket yield ratio shows the average amount that ski ing for the industry, as are the results when broken out by
areas actually collect on lift tickets compared to the advertised regional and size; these segmentations provide even greater
ticket window full price. In 2017–18, ticket yield averaged level of detail on the economic health of the industry.
58.1 percent, down 1.3 percentage points from 59.4 percent Visit nsaa.org for the final report of the 2017–18 NSAA for further information on snowmaking systems, please visit
in 2016–17. This result indicates that, on average, the Economic Analysis, which includes more detailed info. WWW .T E C H N O A L P I N . C O M

40 | NSAA JOURNAL | WINTER 2019