Why the Vail/Alterra Pricing Model Will Never Fly in France

Tony Crocker

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Below is a Ski Area Management article about a group of US ski area execs who visited French ski resorts this past season.


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Also, a point that Tony and I have mentioned repeatedly: "any lodging food and beverage, rental, and retail establishments onsite are independent. They operate at the resort but have no direct affiliation -- financial or otherwise -- with the ski area business." This results in a significant difference in price, quality, and extent of Alps F&B compared to that found on our side of the ocean.
 
Not only F&B, but as noted responding to sbooker's inquiry, ski schools and guide services are also independent. Vail would want no part of such a model.
 
I am very interested in the European ski business model. Austria especially.

Vail bought a controlling stake in Andermatt -Sedrun. Interesting to see.
 
I am very interested in the European ski business model. Austria especially.
My impression of the Austrian ski business, anecdotal but James as one likely source:
1) There is government support
2) Hotels must be owner operated on-site. No chains/absentee owners
3) Strict traditional architecture codes.

If the hotels must be locally owned, I suspect the ski facilities may also. I'd be surprised if foreign/absentee ownership of ski areas would be allowed in Austria.

Vail bought a controlling stake in Andermatt -Sedrun.
from Egyptian investor Samih Sawiris. Sawaris had owned since 2005 and built the Andermatt - Sedrun connection and the luxury Chedi hotel.
 
ChrisC and Tony are well acquainted with many of the resorts under Compagnie des Alpes, the Euro version of Vail and Alterra, which spans La Plagne, Les Arcs, Tignes, Val d’Isère, Méribel, Les Menuires, Serre Chevalier, Grand Massif, Megève, Chamonix-Mont-Blanc, Avoriaz, Rosière, and Valmorel.

If you swapped out the resort names, Compagnie des Alpes' and Vail's websites seem to be virtually interchangeable on a quick scan. It would be interesting to do a detailed compare/contrast exercise between the French and American models.

Vail bought a controlling stake in Andermatt -Sedrun. Interesting to see.
Very concerning. I was surprised that the Swiss government allowed it but as Tony notes, it's been foreign-owned for a while now.
 
I am lead to believe some of the Austrian mountain have a ‘cartel’ type situation happening with families owning multiple businesses with no competition. It is particularly prevalent in Ischgl apparently.

A quote from Snowheads below -

Much of Ischgl is a bit of a monopoly with most things owned by a handful of families who don't take kindly to outsiders coming in and owning property / hotels / businesess / ski schools etc... they're the lucky hill farmers who happened to live on a hill with lots of snow on it when skiing came about, and it's their town and their hill and they're keeping it that way - to be honest I can't blame them - they make an absolute fortune so why give it away to someone else, when they need to recuperate for 3 months in Mauritius after a long hard ski season!!!!
 
I am lead to believe some of the Austrian mountain have a ‘cartel’ type situation happening with families owning multiple businesses with no competition. It is particularly prevalent in Ischgl apparently.
During my first visits to Lech in the mid-00s, I heard that it's similar there (but not sure of the veracity). That said; as you say, who can blame them -- they're locally owned.
 
I read that Zermatt was 3 separate families building the major sectors of the resort: Klein Matterhorn, Stockhorn/Gornergrat, and Rothorn.

You can see from a 1970 piste map that they were not connected:

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Also, the Arlberg has maybe a couple of core areas: Warth, Lech, Zurs, Stuben, St. Anton and Rendl. Yet the number of lift companiesis are near 10? Don't know if that derives from multiple family groups.

In Italy, I know that Courmayeur mayor/council closed the access lader to the Toula Glacier. Assume they had ownership/authority.


Cortina removed a key expert/backcountry lift from the Faloria ski (orange). Waiting for the village to replace it - but it's been a few years.

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