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Skiing immune to the downturn.

 Poster: A snowHead
Poster: A snowHead
Just been reading an article in Le Dauphine http://www.ledauphine.com/france-monde/2012/05/05/la-frequentation-des-stations-de-ski-francaises-en-hausse-de-2-en-2011-2012

where they are summarising the very good season the French Alps have had. Northern Alps had a very good season and the rest of France had a reasonable season. Overall skier days were 2% up at 55 million which is still lower than 2008/9 record.

Maybe the middle classes of europe aren't feeling the pinch as much as the media storm would have us believe.
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 Obviously A snowHead isn't a real person
Obviously A snowHead isn't a real person
There was quite alot of snow, which might have helped.
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 Well, the person's real but it's just a made up name, see?
Well, the person's real but it's just a made up name, see?
A more true reflection on the recessionary impact might be found in countries like Spain where they depend more on local skiers having money to spend and have had more impact from the recession than other areas of Europe.
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Since the recession started in 2008 I've noticed on my own trips significantly quieter slopes and lift queues, not statistically relevant I know but I think its really hurted resorts
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 Anyway, snowHeads is much more fun if you do.
Anyway, snowHeads is much more fun if you do.
Businesses have definitely been affected in Austria.

Many Bars & Restaurants have closed up for the last time.

Even Ski Resorts have gone bust.

Different business models are emerging. Chalets & Upmarket All Inclusive Hotels.
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It will be interesting to see Crystal's industry Report for the last season. I expect numbers to be down.
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 Then you can post your own questions or snow reports...
Then you can post your own questions or snow reports...
The main reason ski industry is booming in Europe, particularly upmarket resorts, is Russians. They have the purchasing power now
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 After all it is free Go on u know u want to!
After all it is free Go on u know u want to!
Last year 2010/11 the market contracted by 25% and did not enlarge this year according to the largest operator.

In the 90 depression the ski industry nearly went bust but discovered and promoted- the snowboard, this was not an early success as too fashion driven graphically and sales were poor (80 in the UK in one year) then the carving ski was realised all changed and snowboards became more main stream.
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Cynic wrote:
Last year 2010/11 the market contracted by 25% and did not enlarge this year according to the largest operator.



I think that just shows that the 'largest operator' didn't do very well, particularly if skier numbers were up this year.
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 Ski the Net with snowHeads
Ski the Net with snowHeads
Economic recession coupled with a low snow year really affected us - I have friends who only worked one or two days this season when usually we have to commit to working at least 21 days, and I had 5 weeks when I only worked a day each week - I'd usually be working at least 5, maybe 6, days in a normal week. On the hand, my requested private lessons were increased, but I think that was due to just one family who took 2 extra trips this year.
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Some stats from Vail Resorts. http://investors.vailresorts.com/releasedetail.cfm?ReleaseID=669280

- Season-to-date total lift ticket revenue at the Company's six mountain resort properties, and including an allocated portion of season pass revenue for each applicable period, was down approximately 0.3% through April 22, 2012, compared to the prior year season—to-date period ended April 24, 2011 despite a decline in total skier visits of 12.6% for the same time periods.

- Season-to-date ancillary revenue from ski school was up 0.3% while revenue from dining was down 4.0% and revenue from retail/rental was down 0.3% through April 22, 2012, compared to the prior year season-to-date period ended April 24, 2011.

- Total season-to-date ancillary revenue per skier visit from ski school, dining and retail/rental increased 13.4% through April 22, 2012 compared to the prior year season-to-date period ending April 24, 2011.

- Cumulative snowfall at our six resorts was down more than 50% over the prior season.

- ... Colorado resorts off 8.9% in visits and our Tahoe resorts, excluding Kirkwood, down 24.2% in visits.
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 And love to help out and answer questions and of course, read each other's snow reports.
And love to help out and answer questions and of course, read each other's snow reports.
when the recession started they very nice hotel we were staying at for the third time was still full but they said that the bar and restaurant were much much quieter - it was notably so. Weve not been back as we've gone self catering to save on the moolah - so we're still skiing, though food and beverage cost has been greatly reduced.
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 So if you're just off somewhere snowy come back and post a snow report of your own and we'll all love you very much
So if you're just off somewhere snowy come back and post a snow report of your own and we'll all love you very much
Tirol Tourism reports the recent season as being above average (based on figures going back to 1984). 80% of hotelliers reported the same or better results than last season.

By visitors.

Swiss +16.1% (clearly driven by the exchange rate).
Russians +12.9%
Italian +7.6%
Czechs +7.0%
French +6.9%
British +6.8%
Austrians +6.1%
Germans +5.9%
Dutch +0.2%

Ischgl, St. Anton and Kitzbühel in particular saw increases in Eastern and Central European visitors.

4 and 5 star hotels in particular saw an increase from last year.
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 You know it makes sense.
You know it makes sense.
The upper end of any market always sails on as they are not on affected by the 99%s recession Gideon has just given them 5%p in pound and on average 40K if you earn a mil a year. How many people dropped down a level this year from 4* to 3* or chalet to SC, from air to bus, skiing to the remaining skiers is an addictive sport so to mainitain the endorphines savings have to be made. This year will be the crunch as Gideon's cuts will kick in and unemployment reaches 10%
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 Otherwise you'll just go on seeing the one name:
Otherwise you'll just go on seeing the one name:
Cynic wrote:
unemployment reaches 10%


I wish it would - it's been over 11% here for the last year or so.
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 Poster: A snowHead
Poster: A snowHead
Quote:

This year will be the crunch


Yes, but for who? If you are right that people have dropped down a category (and I'm not sure that self catering is necessarily a cheaper option than a chalet, it rather depends) then there should be a lot of relieved three star hotels and bus companies. Companies that specialise in discounting will do well too. Four and Five star places will benefit from Swiss Francs, Russian Roubles and City Pounds.

People said the 2011/12 season would be the "crunch." A number of companies or business went to the wall. A number will this year. Some because they can't adapt and evolve to changing customer demands. Some because they have bad luck. Some because they are poorly run. stanton, mentions bars and restaurants closing. The ones in St Anton that closed were either in poor locations, hadn't changed at all in ten years or lacked any ambiance (or in the case of some were simply bought out for redevelopment, crass redevelopment as it happens).

There are some pretty dramatic and scary ways the European economy could unravel this year. But it's not a certainty.
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 Obviously A snowHead isn't a real person
Obviously A snowHead isn't a real person
International visitor numbers down approx. 25% across the board in the Niseko Resort Area of Hokkaido, Japan.

But not because of economic climate.

Many stayed away because of the perceived danger of the after effects of the tsunami. Chose N America instead and the word on the street is they'll all be back next winter due to a miserable time in the US through poor snow.

Fair play to Vail Inc. though. Rubbish snow year and still cranking along.
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 Well, the person's real but it's just a made up name, see?
Well, the person's real but it's just a made up name, see?
From a UK perspective we were warned on or two large players would cease trading in the ski market, so far ifirc only one 'brand' has announced a withdrawal from the Ski market. No medium/large ski operator has gone bust. ...Or is it too early to say that?
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It all comes down to priorities.
New car or ski trip?
Conseratory or ski trip?
Decorate the house or ski trip?
Kids school fees or ski trip?
Heat the house or ski trip?
Pay the mortgage or ski trip?
Eat or ski trip?
I know which I'd choose Very Happy
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 Anyway, snowHeads is much more fun if you do.
Anyway, snowHeads is much more fun if you do.
I should have thought the increase in France this season is based on the same problem for Vail this year, namely snowfall. 2010-2011 in France was (in places) disasterous, this year was epic. The opposite holds for the US.

A more interesting report would correlate % open pistes by day with lift pass days sold.
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Hotelplan Ltd owns Inghams and the Enigma Travel Group (Esprit Holidays and Ski Total).

"Hotelplan Great Britain reports a favourable 2010/2011 business year: turnover was increased 21.3% to GBP 181.6 million, and EBIT was raised GBP 5.0 million to GBP 2.0 million. The positive performance can be ascribed in particular to the successful completion of both, the recent corporate restructuring and the integration of the Enigma Group. The results are especially impressive in that they were achieved in a fiercely competitive business environment which stemmed primarily from the lack of snow in the 2010/2011 winter season. Conversely, the sizeable snowfalls of the present winter period have generated encouragingly strong booking volumes. Specialist ski travel arrangements account for some 80% of Hotelplan Great Britain's total business volume." [06/03/2012]
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 Then you can post your own questions or snow reports...
Then you can post your own questions or snow reports...
Quote:

Kids school fees or ski trip?

Unless you are very rich or very poor you cannot avoid paying taxes so this is not a choice.
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 After all it is free Go on u know u want to!
After all it is free Go on u know u want to!
A specific dynamic for France is the proximity to Switzerland and the increased migration of Swiss based skiers seeking to ski cheaper in France.
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Jivebaby, Switzerland is also next to Austria and Italy. And the Swiss have been taking advantage of the strong franc in these places too.
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 Ski the Net with snowHeads
Ski the Net with snowHeads
Quote:

New car or ski trip?
Conseratory or ski trip?
Decorate the house or ski trip?
Kids school fees or ski trip?
Heat the house or ski trip?
Pay the mortgage or ski trip?
Eat or ski trip?


I would give up the ski trip top have all these things. Never realise so much money has gone into skiing.
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 snowHeads are a friendly bunch.
snowHeads are a friendly bunch.
nozawaonsen wrote:
... achieved in a fiercely competitive business environment which stemmed primarily from the lack of snow in the 2010/2011 winter season. Conversely, the sizeable snowfalls of the present winter period have generated encouragingly strong booking volumes.

See? Smile

Actually, "Snowsports business success related to snow-fall" is hardly front page news, is it?
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 And love to help out and answer questions and of course, read each other's snow reports.
And love to help out and answer questions and of course, read each other's snow reports.
saikee, Laughing
I wasn't suggesting I personally do any of these things, well maybe eat and pay the mortgage.
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