Podcast Summary
Impact of climate change on ski resorts: Climate change is causing decreased snowfall, earlier seasons, and financial challenges for ski resorts. To adapt, they're investing in snowmaking technology and exploring alternative revenue streams. Renewable energy could help mitigate these impacts.
Climate change is having a significant impact on ski resorts around the world, with record warm temperatures leading to decreased snowfall and earlier opening and closing seasons. This trend is not only affecting the ski industry but also poses an existential threat to it. According to NPR's Planet Money, the 2023 was the world's warmest year on record, with record low Antarctic sea ice coverage and record high upper ocean heat content. This change is noticeable to individuals, such as snowboarder Becky Staszak, who mentioned the decrease in snow quality and quantity at Copper Mountain in Colorado. The ski industry is feeling the financial impact of these changes, with US resorts opening later, closing earlier, and taking a financial hit. To survive, ski resorts are getting creative, such as investing in snowmaking technology and exploring alternative revenue streams. Enbridge, a company investing in renewables and lower carbon solutions, is also working towards a sustainable energy future. This shift towards renewable energy sources could potentially help mitigate the impact of climate change on the ski industry and other industries reliant on natural resources.
Asking the right questions about finances and climate change: Seeking advice from CFP professionals and asking questions about finances and climate change can help mitigate financial impacts and adapt to changing conditions
Asking the right questions, particularly those related to finances and climate change, can have significant impacts on our future. Certified Financial Planner (CFP) professionals, committed to acting in your best interest, can help you navigate these complex issues. The ski industry, for instance, has already suffered over $5 billion in losses due to climate change over the past two decades. This trend is expected to continue, with key US ski regions potentially losing up to 97 days of skiing per season in just a few decades. Resorts are trying to adapt by shifting consumer behavior through different pricing strategies, such as season passes, to insulate themselves economically and become more climate resilient. This is just one example of how asking the right questions and seeking the advice of trusted professionals can help us prepare for and mitigate the financial impacts of climate change.
Season pass sales crucial for ski resorts: Ski resorts benefit from season pass sales with upfront revenue, reduced weather risk, and attractiveness to frequent skiers due to increasing day pass prices.
Season pass sales have become a crucial revenue source for ski resorts, as the average pass holder uses their pass less frequently than anticipated, and day pass prices have significantly increased. This strategy benefits resorts by securing revenue upfront, reducing weather risk, and encouraging consumers to purchase season passes in the future. Additionally, with the rise in day pass prices, season passes have become more financially attractive for frequent skiers. According to Vail Resorts, 75% of their visitors were season pass holders last December. Ski resorts are also exploring new revenue streams, such as dynamic pricing for day passes, to adapt to decreasing revenue per instance of skiing. Overall, the trend of increasing season pass sales and day pass prices is a strategic move by ski resorts to mitigate financial instability caused by unpredictable weather and fluctuating revenue per instance of skiing.
Price Discrimination in Ski Resorts: Ski resorts use price discrimination to cater to various customer segments and preferences, offering discounted tickets, monthly passes, midweek passes, and add-ons to skip lift lines. They also explore revenue streams beyond skiing to adapt to a warmer climate and increasing costs.
Ski resorts are implementing various strategies to cope with the rising costs of climate adaptation and declining ski days. One such strategy is price discrimination, where resorts offer a wide range of ticket options to cater to different customer segments and preferences. This includes discounted tickets for certain age groups, monthly passes, midweek passes, and even ticket add-ons like Fast Tracks, which allow customers to pay extra to skip lift lines. Resorts are also exploring revenue streams beyond skiing, such as mountain biking, weddings, golf, and other off-season activities, which have seen a 5% year-over-year increase at smaller resorts. Ultimately, resorts are getting creative in their efforts to extract more value from each customer and adapt to a warmer climate.
Mitigating Weather Impact in Ski Industry: Larger ski resort companies are adapting to weather variability by expanding globally, focusing on off-season activities, implementing more blackout days, and employing price discrimination strategies.
Larger ski resort companies are mitigating the impact of weather variability by having resorts in various locations around the world. This allows them to balance out any potential losses from poor snow conditions in one location with good conditions in another. Evan Rees predicts that these companies may shift their focus to off-season activities, implement more blackout days on season passes, and employ price discrimination strategies. Despite potential price increases, avid skiers like Willfiggers remain committed to their winter obsession and will continue to pay for the experience. The episode was produced by Angel Carreras, engineered by Neil Rauch, fact-checked by Sarah Juarez, and edited by Kate Concannon. This episode is brought to you by NPR sponsors Mint Mobile and Shopify. Mint Mobile offers premium wireless plans starting at just $15 a month, and Shopify is a global commerce platform that allows businesses to customize their online stores.
