Dillon, Colorado — Running a ski area is a deeply volatile business. You rely on the weather to open and remain operational for a select numbers of month. The business is capital and labor intensive, and most of your revenue comes from a few months out of the year. It seems like a finically risky strategy, yet many ski areas have been successful businesses for decades.
A few weeks, the Freakonomics Radio Network dove into the economics of running a ski area, detailing the challenges that operators face in having a viable business.
The Economics Of Everyday Things podcast spoke with Rob Goodell, the Chief Operating Officer at Loveland Ski Area, and Andrew Gast, the General Manager at Mt. Ashland Ski Area.
In the podcast, they discuss the operational costs associated with running a ski area, the rise in mega passes from corporate ski chains, how they keep the mountains safe, and what they’re doing to improve the ski areas. Mt. Ashland’s GM discussed the new chairlift and terrain expansion it opened this ski season. In addition, Gast revealed that they’re introducing axe throwing this summer, and are planning to install two new chairlifts in the future.
Ultimately, the podcast episode is an interesting insider’s look at the freaky economics that come into play at ski resorts.
Image/Video Credits: Mt. Ashland Ski Area, Freakonomics Radio Network, Loveland Ski Area
