late season ski passes

went skiing second week in Easter, a off peak time. I was so disappointed to find that the off season ski pass was only €20 cheaper then then peak season pass, despite 45% of the runs being closed.

The resort is now shut despite good snow at high altitude, reason lack of customers. Resorts could easily extend their opening periods if they discounted the off season prices sufficiently. I was# looking at possibly going for four days next weekend but the resorts I looked at and are open the passes are still costly

Well, it's still a very good deal. Lot of people never even get to ski the lower slopes when they open while still paying full price. Some good snow at the end of season this year too. You are very lucky. last year at the same time people had to take skis off and walk down to get to lifts. I don't think lack of customers is the only reason and I don't think that bigger discounts will attract much bigger crowds. It's April after all and people have alreaddy dusted off their mountain bikes.

verbier_ski_bum wrote:Well, it's still a very good deal. Lot of people never even get to ski the lower slopes when they open while still paying full price.

Not the point, if 45% runs are shut then they should charge at least 45% less

FallingDown wrote:

verbier_ski_bum wrote:Well, it's still a very good deal. Lot of people never even get to ski the lower slopes when they open while still paying full price.

Not the point, if 45% runs are shut then they should charge at least 45% less

All businesses operate with fixed and variable costs. So when activity is reduced, the variable element declines,but rarely in direct proportion, for practical reasons, there is usually a time/activity/cost lag. So if 45% of lifts are closed, the VCs may still be 55/60% of full costs.

However, the fixed costs remain the same. The Alpingers, (mountain first-aiders) still have to be in position. Although the piste machines may be pisting less, they have to get from base to mountain and return. The Bergbahn offices have to be manned, and managers have to remain in post. Their insurance costs remain the same.

The machines still have to clear the whole of the car park area.

Some operating costs actually increase. The capital depreciation costs on the mountain lift equipment is often calculated per operational hour. Depreciation will be a significant element of cost, and if the capacity is cut by 45%, it will effectively double on the lifts remaining open.

Unlike North America, where company often owns an area, European lift companies tend to lease farm high alpine ground. All the rich farmers have north facing land! This has to be paid, lifts open or closed. Again there is a unit increase in cost.

So when lifts operate at 45% capacity, FCs may remain at 95% of full costs.

Dave is 100% spot on. There is more to costs that pass prices cover than operating lifts. Just as lift prices isn't the main factor effecting the crowds at the end of season. And resorts might not want to operate longer than initially planned closing dates. I wondered myself why resorts might close earlier (and often do) but rarely extend their season, unlike it happens in NA, but then I realised that wage rate is generally higher in Europe so the costs of staying open later are not likely to be recuperated. And cows want their pastures back too.

Some of it is about the costs of operating, some is about maintaining a profit margin and also about staffing. Many of the staff will have completed their contracts and left for their summer jobs and thus aren't available to work.

There price charged and the cost of operating may well be puzzling.
Some operators may opt to keep prices high to squeeze as much out of the visitors as possible others may reduce their prices to entice more visitors.

People will vote with their feet if they think they've been ripped off. Why have Fench ski resorts been quieter and the Austrian ones busier?

I think Austria traditionally has been cheaper for skiing than France or Switzerland, though I heard that prices in St. Anton were quite on par. And weak pound means that British skiers lost additional income they were getting from exchange rate so they are looking to compensate it by going to cheaper destinations. As for prices themselves, they haven't changed much in recent years (prices in mountain restaurants in Verbier are exactly the same as they were 8 years ago, the same is true for ski passes or ski school prices), but perception of what is affordable has changed for many people. I know it sounds selfish, but I hope it will stay like this for couple more years, season rent for me certainly went down a bit, and prices in ski shops have been adjusted to reflect strong franc, steeper discounts at sale times AND fewer people on slopes. This season the only time when there were considerable lift lines was during Christmas period. But resorts have to operate at a profit, and pay their staff too (wages never go down) so there is a limit to how much discount a shop/hotel will give.

Dave Mac wrote:

FallingDown wrote:

verbier_ski_bum wrote:Well, it's still a very good deal. Lot of people never even get to ski the lower slopes when they open while still paying full price.

Not the point, if 45% runs are shut then they should charge at least 45% less

All businesses operate with fixed and variable costs. So when activity is reduced, the variable element declines,but rarely in direct proportion, for practical reasons, there is usually a time/activity/cost lag. So if 45% of lifts are closed, the VCs may still be 55/60% of full costs.

This is very true, but let me introduce another business concept, supply and demand.

If I wanted to go to Milan over Easter the plane ticket was well over a £100, particularly at weekends, if I want to go now it is £50 return, car hire for a week £140, now it is £90, apartment in a ski resort £500 now £150, yet these business too have fixed costs.

The peak and off peak price differential of €20 Euros is a joke and no wonder people stay away from ski resorts at this time of the year.

If you went to a restaurant who could provide you with only two courses of a three course meal, would you be happy to still pay the same because of their fixed overheads?

And there are still overheads when your shut down and no one is there, so you might be better off charging a lot less end of season and making a loss.