Ski & Resort Corporation is facing declining market share in the Colorado ski industry as customers spend fewer vacation days skiing and repeat visit rates are low. To address this, a two-pronged approach is recommended involving pricing actions and initiatives to increase skier volumes. The pricing actions include increasing multi-day discounts and implementing peak/non-peak pricing with a repeat customer discount. Initiatives to increase skier volumes include expanding the online reservation system, implementing a commuter service from local airports, and marketing to international skiers. These recommendations are aimed at attracting new customers and retaining existing ones to boost revenue while balancing demand across the season.

1. Ski & Resort Corporation
Paths to Growth
Authored by: Neha Randhawa
1

2. Objectives For Today’s Meeting
Objectives
Executive
Summary
Situation Analysis Core Issue Recommendations
Implications &
Risks
Implementation
• Level set understanding of competitive environment and situation at
SSRC
• Determine core issue company is facing
• Review and evaluate recommendations
• Review implications and risks of recommended action plan
• Next steps in implementation plan
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3. Executive Summary
Objectives
Executive
Summary
Situation Analysis Core Issue Recommendations
Implications &
Risks
Implementation
• Ski destination resort industry increasingly competitive
• SSRC doing well, but losing share of Colorado skier market
• Customers spending fewer of their vacation days skiing on the mountain
and repeat visit rate low
• SSRC needs to grow revenue by attracting new customers and retaining
current customers
• Two-prong approach: Pricing actions and volume driving actions
• Will lead to higher revenue yield and increase # of skier days
• Add customer value and balance demand
• Implement pricing actions within 3 months, volume driving actions
between 4-6 months, review program effectiveness in one year
3

4. Competition increasing and SSRC’s share of market
declining
Objectives
Executive
Summary
Situation Analysis Core Issue Recommendations
Implications &
Risks
Implementation
• SSRC had its best year ever (‘92/’93 season)
• Positioned as one of the premier North American ski resorts
• Direct competitors in Colorado area include Vail/Beaver Creek,
Aspen/Snowmass, Crested Butte, Telluride, and Ski The
Summit
• However, customers spending fewer of their vacation days
skiing on the mountain
• Customers looking for other wintertime activities (eg. Snowmobiling)
• SSRC’s share of Colorado skier market has steadily declined
since 1990
• SSRC’s repeat visit rate was low, even compared to other
resorts
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5. Core Issue Facing SSRC
Objectives
Executive
Summary
Situation Analysis Core Issue Recommendations
Implications &
Risks
Implementation
• How can SSRC continue to grow revenue in an increasingly competitive
ski destination resort industry?
5
Grow
Revenue
Attract new
customers
Retain
existing
customers

6. Recommendations – Two Prong Approach
Objectives
Executive
Summary
Situation Analysis Core Issue Recommendations
Implications &
Risks
Implementation 6
1. Pricing
Increase multi-day discount
on lift ticket
(4 and more days only)
Seasonal variance lift ticket
(peak vs. non-peak)
Repeat customer discount
2. Volume
(# of skier days)
Expand SCRS reservation
system
Implement commuter
service from airport
Market to international
skiers (destination)
Legend:
Attracting new customers
Retaining existing customers
Both sets of customers

7. Optimize Price for Higher Revenue Yield
Objectives
Executive
Summary
Situation Analysis Core Issue Recommendations
Implications &
Risks
Implementation
• Current discount level not competitive, does not provide financial incentive to buy
• Provide better customer value and increase multi-day ticket sales
• Incremental revenue to offset margin lost on multi-day discount
7
Pricing
Increase multi-day
discount on lift ticket
(4 and more days only)
Seasonal variance lift
ticket (peak vs. non-peak)
Repeat customer discount
• Three season pricing: Peak @ $45 (Christmas, New Year’s, March Break), Regular @
$42, Value @ $37 (Nov 26 – Dec 11, April 5-close)
• Bring pricing more in line with direct competitors Vail/Beaver Creek & Aspen/Snowmass
• Balance demand; attract customers in slower periods and increase margins in peak
periods
• Repeat visit rate low at 55%
• Incent customers to return by offering additional discount to drive sales and loyalty
• Incremental revenue from additional sales to offset margin lost on discount

8. Increase # of Skier Days to Lift Revenue
Objectives
Executive
Summary
Situation Analysis Core Issue Recommendations
Implications &
Risks
Implementation 8
Volume
(# of skier days)
Expand SCRS reservation
system
Implement commuter
service from airport
Market to international
skiers (destination)
• 20% of customers used SCRS to reserve in ‘91/’92, trend increasing
• 75% of these customers used toll-free #, with 60k calls receiving busy signal
• Expanding capacity will allow more reservations to be made, increasing sales
• 81% of business from customers in US, outside of Colorado
• Commuter service adds value and easy transport to mountain from Yampa or
Steamboat Airport
• Differentiation can help add value in ticket prices compared to other resorts
• International skiers segment growing in US
• Willing to pay premium for premium destination resort
• Incremental revenue from sales to this segment offsets cost to market to this
segment

9. Implications & Risks
Objectives
Executive
Summary
Situation Analysis Core Issue Recommendations
Implications &
Risks
Implementation
Implications
• Two-prong approach is balanced
and conservative
• Will lead to higher revenue yield
and increase # of skier days
• Deliver more value to multi-day
skiers and repeat customers
• Maintain position of premier
resort, in kind with Vail & Aspen
• Positive impact to local residents
as business in area increases
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Risks
• Little data on customer acquisition or
retention costs – need to validate
information
• Pricing actions’ impact TBD – could be
viewed negatively by customers or not
competitive given other resorts’ actions
• Unable to gain market share
• Uncertainty of how KIC (parent
company) will respond to
recommendations

10. Implementation Plan
Objectives
Executive
Summary
Situation Analysis Core Issue Recommendations
Implications &
Risks
Implementation 10
Research & Analysis
Conduct analysis on pricing actions
and feasibility, effectiveness
Time Immediately
Implement Pricing Actions
Determine pricing actions’ details
and implement in fee structure
3
months
Expand SCRS reservation system
Expand reservation system toll-free #
capacity to be able to take in new
reservations
4
months
Implement Volume Driving Actions
Introduce commuter program and market
to international skier segment
6
months
Post Implementation Review
Review and analyse effectiveness of
pricing and volume actions
1
year

11. How to
improve
profit?
Increase
Revenue
Reduce
Costs
Fixed
Costs
Variable
Costs
Volume
Revenue
Capture
Increase
# of skier
days
Improve
Mix
Optimize
Price
Create
commuter
service from
airport
Market to
Internat’l
skiers
(desination)
No
Change
Increase
multi-day
discount
Seasonal
variance
Teen
Program
Repeat
customer
discount
Lift
tickets
Accessory
Shop
Ski school
Restaurant
Lodging
Other
wintertime
activities
On-
Mountain
Dining
Summer
activities
Current
products
New
products
Expand SCRS
reservation
toll-free # to
avoid busy
signal
Exhibit: Decision Tree