Gross Revenues Up 7.9% in 2010/2011 U.S. Snowsport Season

According to data from RRC Associates' Snowsport Economic Analysis, average gross revenues and average revenue per visit at resorts in the U.S. were both up from the 2009/2010 season.

Gross revenues per resort increased 7.9% over the previous season, to an average of US$25.7 million per ski area, while total revenue per visit averaged US$77.24, a 5.4% increase over the prior year.

Average gross revenue was up in all six geographical regions of the U.S. and in three of the key size categories, showing consistency of the performance across the U.S. ski industry.

The Pacific South region reported the largest increase, up 9.3% to US$31.8 million per area, followed by the Pacific North region (+9.0% to US$12.8 million).

Revenue was up in all major departments: lift tickets (6.5%); food and beverage (+9.8%); lessons (+9.4%); accommodations and lodging (+8.1%); and retail stores (+26.1%).

However, operating expenses also were up considerably (+13.2%) to an average of US$23.4 million per ski area nationally. These higher costs hindered the increased levels of revenue, contributing to a small increase in operating profit, but a decline in operating profit margin, pre-tax profit and pre-tax profit margin figures.

Revenue per visit from all major revenue departments, which includes lessons, F&B, accommodations/lodging, retail store and rental shops, were up from a year ago. This is a positive sign, indicating customers' increased willingness to spend while at ski areas in 2010/2011.

In the 2010/2011 season there were 60.54 million visits to ski areas around North America, which set the record for the most visits during any season. A visit is defined as one person skiing or snowboarding at any part of the day or night at a ski area.

The Snowsport Economic Analysis is a survey of ski areas within the U.S. The survey includes responses from 107 U.S. ski areas, representing approximately 59% of the total visits/volume of business in the industry.

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