Page 52 - 80819_NSAA_Volume26_Journal_Neat

DRIVING SMART DATA ...
Figure 4
Revenue, Expense, Profit per Visit By Ski Area Profit Level, 2016/17

Revenue per Visit Expenses per Visit Profit per Visit $122.57
$120 $118.19
$109.16
$90 $87.35 $82.19
$74.64
Loyalty Points: 4040
$60 Age: 40

$30.84
$30
$7.55
$0 Name: David Schneider

$-13.41
-$30
Top Half Profit Bottom Half Profit Loss

Season Ticket

$10 million or more, a very impressive result. The average 104 days last year, contributing to a pre-tax profit margin of
pre-tax profit among resorts in the study was $11.4 million 9.2 percent for this group, or $1.3 million.
and the median figure was $3.7 million, up from an average
of $9.5 million and a median of $2.6 million for the 2015-16 Ski Areas with a Pre-Tax Loss
fiscal year. Twenty-nine of the 112 participating ski areas (26 percent)
reported an average loss of $2.2 million at the pre-tax profit
Top Half Profit level. These ski areas tend to be of a size similar to the bottom
About 74 percent of the individual ski areas responding to half profit ski areas (average downhill visits of 161,984) and are Male Hometown: Denver
the study realized a positive level of pre-tax profit (figure 4). also apt to have night skiing (59 percent do). Revenue per visit
Breaking these 83 ski areas into two equal groups, the ones is quite high at this group of ski areas, at $109.16 per visit, with
in the top half of the profit distribution tend to be large ski food and beverage playing an important role, but expenses are
areas (averaging 587,230 downhill visits and 1,410 total even higher ($122.57 per visit). Costs are particularly high for
employees). They have high levels of revenue ($69.4 mil- depreciation, interest, direct labor, general and administrative,
lion, or $118.19 per visit), particularly for tickets and lessons, electric power/fuel, cost of goods, and maintenance/repairs in
and slightly lower average costs, especially for general and this group of ski areas, contributing to the difficulty in showing
administrative, electric power/fuel, maintenance/repairs, and a profit. While this group of ski areas reported a loss at the pre-
depreciation/operating leases/interest expenses. This group tax profit level, they are profitable at the operating profit level
of 42 ski areas averages pre-tax profit of $18.1 million (26.1 ($2.1 million in operating profit per ski area).
percent pre-tax profit margin).
The results of the NSAA Economic Analysis of US Ski Areas
Bottom Half Profit demonstrate a very strong business operating environment Driving Your Digital Future...

Ski areas in the bottom half of the profitable group (41 areas nationally during the 2016-17 season, with some variabil-
total) tend to be small ski areas, averaging 166,558 down- ity seen by geographic region of the country. The full report, SKIDATA Mountain Access Solutions have been providing custom solutions on the slopes
hill visits and $26.3 million in gross fixed assets. This group available at nsaa.org, includes detailed information about ski for over 40 years. The flexibility of the SKIDATA system makes it easy for you to increase
is more likely to have night skiing operations (56 percent do, area finances, balance sheets, income statements, key met- guest satisfaction while improving on efficiency with automated processes. With everything
compared to 47 percent of all ski areas), which contributes to rics, ratios, and other characteristics of the industry. The from complete Access Systems with easy control and monitoring to Destination Management
their high level of utilization (33.5 percent). They also have report is a vital resource for individual ski areas to under- Software and even Marketing & Sales Channels, SKIDATA offers the solutions you need.
low levels of depreciation, direct labor, other direct, cost of stand how their financial performance stacks up against size,
goods, payroll taxes/workers comp, and property/other taxes. regional, and national norms, and to benchmark their own
The number of days of operation increased to 119 days from performance against those same standards.
www.skidata.com (303) 980 4441
50 | NSAA JOURNAL | SPRING 2018

driving-smart-data_21,59x27,94cm_en_2018.indd 1 30.01.2018 16:29:46