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How Much Do Ski Resorts Make Yearly? [Profit Margin]

Ski Resort Business

Do you want to know how much money ski resort owners make yearly? If YES, here are 6 factors that determine the income & profit margin for ski resorts.

In order to have an idea of the amount a ski resort owner is expected to make yearly, you should clearly define the services that a ski resort offers. A ski resort is developed for skiing, snowboarding, and other winter sports. With that in mind, we can estimate what a ski resort offers.

But it is important to point that there is no one-mold -fits-all when it comes to how much a ski resort owner is expected to make. There are some factors that we are going to look into before giving an estimate of how much a ski resort owner makes yearly and these factors are;

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6 Factors That Determine How Much Money Ski Resorts Make Yearly

1. The Size of the Ski Resort and the Service Offerings

No one can conveniently state the amount a ski resorts owner is expected to make yearly if you do not know the size of the ski resort and the number of visitors the facility can accommodate per time. As expected, a ski resort business that operates from a small facility is expected to make far less than one that operates from a standard facility that is specifically designed for a world – class skiing and related activities.

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If your ski facility is large enough, it can accommodate more members and that will mean increase membership revenues – you can actually make between $1 million to $3 million from a ski resort. A standard ski resorts that offers the following services is expected to maximize profits;

  • Operating alpine skiing facilities without accommodations
  • Operating cross-country skiing facilities without accommodations
  • Operating downhill skiing facilities without accommodations
  • Operating four-season ski resorts without accommodations
  • Ski lift and tow operation
  • Operating ski resorts without accommodations
  • Food and beverages
  • Ski schools
  • Equipment rental

2. The Location of the Ski Resort Facility

We must not rule out the fact that the location of a ski resort is a major factor that will determine the amount they earn monthly. Ski resorts are located on both northern and southern hemispheres on all continents except Antarctica.

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They typically are located on mountains, as they require a large slope. They also need to receive at least 50 cm (20 in) of snow (unless the resort uses dry ski slopes). High concentrations of ski resorts are located in the Alps, western and eastern North America, and Japan.

There are also ski resorts in the Andes, scattered across central Asia, and in Australia and New Zealand. The truth is that you will struggle to make good money from your ski resort if you locate the business in an area that hardly attracts tourists or an area that has bad road network; an area that is difficult to access.

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3. The Type of Facility and Complimentary Services that is Available at the Ski Resort

Another important factor that will determine how much a ski resort facility owner is expected to make yearly is the type of facility and other complimentary services offered by the resort. Ski areas have marked paths for skiing known as runs, trails or pistes.

Ski areas typically have one or more chairlifts for moving skiers rapidly to the top of hills, and to interconnect the various trails. Rope tows can also be used on short slopes (usually beginner hills or bunny slopes). Larger ski areas may use gondolas or aerial trams for transportation across longer distances within the ski area.

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Ski areas usually have at least a basic first aid facility, and some kind of ski patrol service to ensure that injured skiers are rescued. The ski patrol is usually responsible for rule enforcement, marking hazards, closing individual runs (if a sufficient level of hazard exists), and removing (dismissing) dangerous participants from the area.

Some ski resorts offer lodging options on the slopes themselves, with ski-in and ski-out access allowing guests to ski right up to the door.

Ski resorts often have other activities, such as snowmobiling, sledding, horse-drawn sleds, dog-sledding, ice-skating, indoor or outdoor swimming, and hot tubbing, game rooms, and local forms of entertainment, such as clubs, cinema, theaters and cabarets.

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Some ski resorts offer complimentary services that ensure that they make more money; they offer entertainment, nightlife or social events that occur specifically at ski resorts. These add to the enjoyment of resort-goers and provide something to do besides skiing and snowboarding.

The culture originated in the Alps, where it is most popular and where skiers often stop at bars on their last run of the day while still wearing all their ski gear.

4. The Management Style of the Business

Another key factor that will determine the amount a ski resorts facility owner is expected to make yearly is the management style of the ski resorts. Trust me, the results you will get when you are a good manager will definitely be different from a ski facility with poor management style.

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The idea is that a good ski resort manager will not just retain their old customers (members), they will also keep getting new customers (members) enrolling in the ski resort.

5. The Advertising and Marketing Strategies Adopted by the Ski Resorts

Another key factor that will determine the amount a ski resort can make yearly is the advertising and marketing strategies adopted by the ski resorts. Trust me, there are several advertising and marketing strategies that can help a business increase their earnings but you may be expected to spend more.

But the results you will make will far outweigh the amount you spent on advertising and marketing. Of course, you don’t expect a ski resort owner that is engaging in aggressive advertising and marketing to make same amount yearly with a ski resorts owner that is passive with its advertising and marketing.

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6. The Number of Years the Ski Resorts is in Existence

In business, the number of years you are in existence will go a long way to determine the amount you will make especially if the business is well – managed. This is because over the years, you would have been able to gain the trust of your customers and it will be easier for you to always have them coming back and also recommending clients to you.

For example, in your first fiscal year (FY1) you might make one million dollars ($1,000,000), in your second fiscal year (FY2) you might make two million dollars ($2,000,000) and in your third fiscal year (FY3) you might make 3 million dollars ($3,000,000).

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Please note that as a result of the global warming, the snow season shrunk by 34 days. Snow sports tourism contributes about $20 billion to the U.S. economy each year, according to researchers at the University of New Hampshire and Colorado State University. The bulk of that spending is at ski resorts, like Colorado-based Vail Resorts.

Estimated Profit Margin for a Ski Resorts Facility

Studies shows that the potential profit of a ski resort varies greatly and as earlier stated it is dependent on its size, facility and location et al.

For example, the mountains Hopara lists often rakes in between $1 and $3 million each year. Please note that large resorts with additional facilities and services can earn above $3 million per year. Interestingly, ski resorts usually fix the price as it suits them and they can mark-up their prices as it suits them.