Lift ticket prices

[Champagne Powder]

Tickets are not really 70 bucks are they?

[boston_e]

Probably with every penny of that!

[machski]

Tickets are not really 70 bucks are they?

Yup!!

[freeski]

They have a monopoly as they've cornered the market. Maybe throw in a T-Shirt

A drink ticket A Terrible Towel? Sticker

[Champagne Powder]

Terrible Towel.Now you are talking.Steeler fan I see

[freeski]

Yep, Killington is getting good press, selling stuff. If Cannon charged $70 for the upper MT. which they could they could keep that pod open into May easily, butt it would screw with the bears.
If people pay it more power to them. I thought it was $25 a while back. Skiing is believing. (coined that on the fly).

[da Pimp]

I doubt that a $25 or $35 ticket will get many more people. Either you can ski bumps or you can't. Won't get many blue square groomer skiers & riders out on nothing but spring bumps & softies, they know they can't handle it.

So why not charge $70 for all of those who can and are willing to invest the time to get there with so many competing activities demanding time. They are motivated, they really want to ski, so $70 is going to be accepted. THere's nowhere else to go to ski, K created the product for this purpose.

If things go as expected and June 1,2 are decent then you will see a lot of people there who normally would not go. They all want to say I skied in June, even though they know it is over their heads skill-wise.

[boston_e]

I wonder what percentage of people are buying day tickets at this point anyway? My instinct is that most are going to be season pass holders, spring pass holders, Ikon pass people or people using up the last of their K-tickets or vouchers.

[Guy in Shorts]

As Mike S. said a few years back when I begged for the Pico schedule for the month of May. He replied "All days in May are money losers". They stay open because it sells the brand of The Beast. Even though they aren't making money bringing in cash flow during the slowest part of the year is a good thing. Bike season and ski season seem to overlap in recent years. The Beast 365.

[Mister Moose]

We don't know how Killington does their bookkeeping in May. Do they just go on positive cash flow? Do they include any amortization of fixed costs?

And how do they count revenue in May? It seems to me you could track passholders, and divide the total days you ski by what you paid for your pass and apply that as revenue for the day. Especially for Spring passes, they were bought specifically for spring. Also, when a K-ticket or other advance ticket is used in May, is the revenue counted when it was purchased or when it was redeemed?

I'm guessing it's all booked as a sale on the day it's paid. It's non-refundable.

However, many passes wouldn't be bought without the long season. Many Spring passes wouldn't be bought without Killington lasting way longer than the hill down the road. Many 4 packs wouldn't get sold without assuring yourself you can always use it up late spring.

So if on a sunny late May day 500 skiers show up, and each skier skis an average of 60 days on their pass (May skiers are dedicated) and each paid an average of $1,000 for their pass, then those 500 skier-pass days are worth 500*1,000/60 or $8,300. Add in a few dozen day tickets, beers, burgers and sunblock sales.

It comes down to what you believe - How much does the World Cup contribute to mid season bookings? How much does October opening contribute to "buzz' and pass sales? How much does May (And being able to sometimes say June) contribute to making Killington a place someone wants to buy real estate and marry the mountain?

What actually brings people in the door is an elusive thing. So far, Mike seems to believe.

[da Pimp]

Well, it did not take long for POWDR to realize that their desired business model of less days at higher margins per day was not going to work. Big declines in attendance and revenue finally forced them to change into what we have today (which is what we had before POWDR). Attendance is climbing up every year (except for the recent no snow season) and I must assume the revenues that go along with more customers.

Early season snowmaking and attendance creates the buzz and regional confidence that you will have a good time if you book something in the Dec / holiday time frame. That is not in effect for Vermont ski neighbors, who will always be a big risk going into xmas. Add the World Cup over Thanksgiving and its easy to see why they are willing to lose some coin on that event every year.

Late season operations creates a buzz and regional confidence that you will have a good time if you book something in the March/April time frame. When the neighbors are looking pale, Killington (and the access road) are still cranking at 100%. Killington gives you mid-winter quality earlier in the season and later in the season.

Having a big plus at both ends of the season generates season pass and day ticket program sales, driving up cash flow and year long food & beverage sales.

Speaking of early season stuff - any noise for World Cup continuing?

[iRock]

We don't know how Killington does their bookkeeping in May. Do they just go on positive cash flow? Do they include any amortization of fixed costs?

And how do they count revenue in May? It seems to me you could track passholders, and divide the total days you ski by what you paid for your pass and apply that as revenue for the day. Especially for Spring passes, they were bought specifically for spring. Also, when a K-ticket or other advance ticket is used in May, is the revenue counted when it was purchased or when it was redeemed?

I'm guessing it's all booked as a sale on the day it's paid. It's non-refundable.

However, many passes wouldn't be bought without the long season. Many Spring passes wouldn't be bought without Killington lasting way longer than the hill down the road. Many 4 packs wouldn't get sold without assuring yourself you can always use it up late spring.

So if on a sunny late May day 500 skiers show up, and each skier skis an average of 60 days on their pass (May skiers are dedicated) and each paid an average of $1,000 for their pass, then those 500 skier-pass days are worth 500*1,000/60 or $8,300. Add in a few dozen day tickets, beers, burgers and sunblock sales.

It comes down to what you believe - How much does the World Cup contribute to mid season bookings? How much does October opening contribute to "buzz' and pass sales? How much does May (And being able to sometimes say June) contribute to making Killington a place someone wants to buy real estate and marry the mountain?

What actually brings people in the door is an elusive thing. So far, Mike seems to believe.

I think no matter how you slice it, even if everyone bought day tickets and there was a ten minute wait for the quad every day they were open in May, they'd still lose money given the time/energy costs to make all that May snow.

I'm sure they lose money in May now. Back in 1990 with minimum wage around $4, and diesel costs and liability insurance both almost nothing compared to today I'm sure it was a different story.

[madhatter]

We don't know how Killington does their bookkeeping in May. Do they just go on positive cash flow? Do they include any amortization of fixed costs?

And how do they count revenue in May? It seems to me you could track passholders, and divide the total days you ski by what you paid for your pass and apply that as revenue for the day. Especially for Spring passes, they were bought specifically for spring. Also, when a K-ticket or other advance ticket is used in May, is the revenue counted when it was purchased or when it was redeemed?

I'm guessing it's all booked as a sale on the day it's paid. It's non-refundable.

However, many passes wouldn't be bought without the long season. Many Spring passes wouldn't be bought without Killington lasting way longer than the hill down the road. Many 4 packs wouldn't get sold without assuring yourself you can always use it up late spring.

So if on a sunny late May day 500 skiers show up, and each skier skis an average of 60 days on their pass (May skiers are dedicated) and each paid an average of $1,000 for their pass, then those 500 skier-pass days are worth 500*1,000/60 or $8,300. Add in a few dozen day tickets, beers, burgers and sunblock sales.

It comes down to what you believe - How much does the World Cup contribute to mid season bookings? How much does October opening contribute to "buzz' and pass sales? How much does May (And being able to sometimes say June) contribute to making Killington a place someone wants to buy real estate and marry the mountain?

What actually brings people in the door is an elusive thing. So far, Mike seems to believe.

I think no matter how you slice it, even if everyone bought day tickets and there was a ten minute wait for the quad every day they were open in May, they'd still lose money given the time/energy costs to make all that May snow.

I'm sure they lose money in May now. Back in 1990 with minimum wage around $4, and diesel costs and liability insurance both almost nothing compared to today I'm sure it was a different story.

they sell a lot of beers...

[hillbangin]

Madhatter said it

Beer = Revenue

I bet they don't sell 10 day tickets - never mind the 200 spring pass that is the deal of the century.

Those tents on the access road are killing revenue though.....surprised they don't sell a tailgating permit.......

[Ski_The_East]

I ski K just for closing every year. Just a day pass, never come out to Vt otherwise