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Ski and Snowboard Resorts in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld

Dec 29, 2013, 12:00 ET

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Spending on ski resorts is discretional, so the industry lost revenue during the recession.

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New York, NY (PRWEB) December 29, 2013 -- Ski and snowboard resorts endured hardship as industry demand halted in 2009, and a weak recovery has resulted in slow growth over the past two years. “Families and individuals have been forced to cut back on their winter vacation budgets due to a rise in unemployment and a subsequent fall in disposable income,” according to IBISWorld Industry Analyst David Yang. Disposable income declined 3.6% in 2009, causing industry revenue to fall 6.8%. Revenue dropped another 5.4% in 2012 due to poor snow conditions brought on by a fifteen-year low in rainfall over the year. As such, IBISWorld expects industry revenue to fall at an annualized rate of 0.5% to $2.6 billion in the five years to 2013. In 2013, revenue is anticipated to recover 2.5% due to a return to normal rainfall levels.

Low disposable income resulted in a profit squeeze for industry operators. Resorts offered more deals for season packages to encourage visitors even as they invested in more snowmaking equipment and faster lifts to boost future revenue.

The industry continues to undergo consolidation as large operators buy up individual ski resorts or send small operators out of business. “The industry is highly competitive, and the credit crunch has hurt some of the smaller resort operators, which have less access to capital than well-funded operators, such as Vail and Intrawest,” says Yang. Industry enterprises are expected to consolidate at an annualized rate of 0.2% in the five years to 2013.

The Ski and Snowboard Resorts industry is highly vulnerable not only to spending patterns, but also to climate change. This raises some concern about the future for ski resorts. Industry operators have responded by initiating various programs to reduce greenhouse gas emissions and educating their visitors to do the same. The National Ski Areas Association has led this movement with its Environmental Charter, which outlines guidelines and best practices for ski resort operation. Larger companies, such as Vail, are also expected to continue adding snowmaking capabilities to limit their risk in the industry. Improved technology, energy efficiency and demand will result in revenue growth over the next five years.

For more information, visit IBISWorld’s Ski and Snowboard Resorts in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Ski and Snowbaord Resorts industry comprises establishments engaged in operating downhill, cross-country or similar skiing areas, or operating equipment, such as ski lifts and tows. These establishments often provide food and beverage services, equipment rental services and ski instruction services. Four-season resorts without accommodations are also included in this industry, but companies that own and do not operate ski resorts are excluded from the industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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