The Economics of Ski Resorts: Why Lift Tickets are So Expensive

🏔️Ski resorts require expensive infrastructure, such as ski lifts, which can cost millions of dollars to construct.

👥Ski resorts need a large number of employees to operate lifts, manage facilities, and provide services, adding to their costs.

🌍Ski resorts are located in areas with limited affordable housing, making it challenging to recruit and retain seasonal workers.

❄️Snowmaking is costly and energy-intensive, contributing to the expenses of ski resorts.

🌡️Climate change poses a threat to ski resorts due to decreased snowfall and shorter seasons, leading to changes in the industry's business model.

Why are lift tickets so expensive?

—The high cost of lift tickets is due to the expensive infrastructure, such as ski lifts, that ski resorts need to construct and maintain, as well as the costs associated with employing a large number of workers and providing affordable housing.

What contributes to the high expenses of ski resorts?

—Ski resorts have high expenses due to the construction and maintenance of ski lifts, the need for a large workforce, the scarcity of workers and affordable housing, and the cost of snowmaking.

How does climate change affect ski resorts?

—Climate change leads to decreased snowfall and shorter seasons, which pose a threat to ski resorts. This has resulted in industry consolidation and changes in the business model to mitigate the impact of climate change.

Why do ski resorts rely on snowmaking?

—Ski resorts use snowmaking to ensure snow coverage, especially in areas with limited natural snowfall. However, snowmaking is expensive and energy intensive.

How do ski resorts manage their expenses in the face of climate change?

—Ski resorts have been making changes to address climate change by investing in snowmaking capacity and shifting their business models. They have also embraced season passes to hedge against weather-dependent revenue.

00:00Ski resorts require expensive infrastructure to operate, such as ski lifts.

02:32Ski resorts need a large workforce to operate lifts and provide services, but finding workers willing to work seasonally is challenging.

07:02Snowmaking is costly and contributes to the expenses of ski resorts.

09:17Climate change poses a threat to ski resorts, leading to industry consolidation and changes in the business model.

11:22Season passes are being used to hedge against weather-dependent revenue and mitigate the impact of climate change.