British Ski Industry Looks to Recover from Last Season’s Losses

By David Heard -- Sunday Business, London

October 1, 2000
It is difficult to believe now that this time last year we were in the midst of Millennium hype. The very word seems to have been ignominiously dispatched to the dustbins of memory, but one of the casualties of that hype was the UK ski industry.

The pendulum swung from the euphoric hand-rubbing anticipation of masses of money -- the Millennium premium -- that we willing holidaymakers would pay, to despairing recognition that all was not well.

The rationale put out by the travel trade is that Christmas and New Year's Day both falling on a Saturday meant the usual travel patterns were screwed up. The loss of the first Saturday in January effectively reduced departures in that month by a massive 20 percent and this calendar corruption also had a knock-on effect on the half-term holidays. Added to that a lot of people simply stayed at home to celebrate.

The fact that the usual key ski period, Easter, fell so late ruined the opportunity of any last-minute recovery.

The reality was that the ski business dropped 12 percent, which means about 90,000 fewer people made it to the slopes last season. So the prediction for the coming season is a huge swing back.

Tour operator optimism apart, the signs are promising. There is a certain logic in the theory that there is a pent-up demand. As one travel pundit puts it: "That mass of people haven't given up skiing for good, they just didn't go last year."

There are also other more pragmatic reasons. The pound is at a 10-year high against the major ski-country currencies. The forward purchase currency rates most tour operators use in their costings show that the Austrian schilling at 21.26 is up 2.7 percent on a year ago, the French franc at 10.2 (up 5 percent), the Swiss franc at 2.53 (up 1 percent ) and the Italian lira at 2987 -- up a massive 36 percent .

There have been some aggressively priced early brochures, notably from Inghams which seems to have stimulated early booking, and market leader Crystal Holidays forecasts a comeback of around 10 percent .

At Thomson Holidays, managing director Andrew Peters is more bullish: "We are very happy with our ski sales. We are 20 percent up on the same time last year and anticipate that we will finish about 15 percent up at the end of the season."

But within the statistics there are some interesting trends. France has consolidated its position as number one host country, with almost a third of the British market.

This has been achieved through its consistent snow record, a range of accommodation from chalets and apartments to full-service hotels, huge interlinked ski areas that offer great lift-pass value and ease of access.

Italy, in contrast, has suffered from two seasons of indifferent snow, particularly in the Aosta valley, and the received wisdom is that this will deter skiers in the coming season.

Switzerland has been quietly gaining market share for the past few seasons. The constant quality of the accommodation and service products and some stunning skiing has helped to re-establish the country as almost a boutique wintersports host.

Austria is becoming more aggressive. Investment in infrastructure improvements are at an all-time high, with new gondolas or eight- and six-seat quads replacing old chairlifts, more snow-making machines, piste widening and even the creation of new runs such as the Hohe Salve to Sšll.

The eastern European countries of Bulgaria and Romania are losing out as their economic advantages become eroded. Most tour operators make their accommodation and lift pass contracts in sterling, so the exchange rate gain has been neutralised. Equally important is the lack of capital to invest in infrastructure. The result is that they are starting to look even more tired and limited than before.

They still offer cheap packages for beginner skiers and good value for families, but the feeling is that they will continue to lose ground. In contrast, tiny Andorra in the Pyrenees has read the signs and has had a major makeover. Formerly considered the cheap ski alternative beloved of beginners and ski bums, it is now gaining a certain cachet among experienced skiers.

Linking lifts between Pas de la Casa and Soldeu made for more continuous and testing skiing. It is still a cheap place in Alpine terms and represents excellent value.

Other factors affecting the market are less obvious. More of us are travelling independently. Since 1991 the independent sector has grown from 18 percent to nearly 26 percent and while the tour operator business fell 12 percent last year, the independent sector fell only 4.6 percent.

Ease of booking, familiarity with the resorts and better access have made ski-drive an increasingly preferred choice. Being able to decide at the last minute and take advantage of the best snow is a big plus.

Having the car in your resort means being able to ski several areas with ease. And there is the bonus of throwing all that bulky ski gear in at the start of the journey and not having to lug it about until you arrive in your resort is huge.

There is another small, but rapidly growing, independent sector -- the weekend ski break. The availability of weekend flights, notably to Geneva and Zurich, and short transfer time from airport to mountain resort have seen the creation of a whole new short-break ski business. The set-up is ideal for business people who could clip a Friday from one week and the Monday from the next for four full days of skiing.

These independent options allow you to choose some off-beat resorts, more or less guarantee the snow conditions and work entirely to your own timetable, but they do not offer any support in the resort or protect against currency swings and if you leave it to the last minute, you may not get what you want.

Certainly tour operators have responded to last year's letdown. There is a plethora of early booking offers and already there are reports that some places are filling fast, particularly for the half term, Christmas and New Year.

So there are cases for both sectors, but the message, as always, from the tour operators seems to be -- book early or risk disappointment.

And this year that could be the message you should pay attention to.


SOME SEVENTEEN YEARS AGO A BRAND new ski school, the Ecole de Ski Buissonniere, was set up in Serre Chevalier ?vg?where?. The loose translation of the name means "Truant" and it was offering a radical departure from the formulaic style and approach of the then monopolistic National Ecole de Ski Francaise.

Feathers were truly ruffled when the Buissonniere boys claimed that the motivation in the French ski school was to teach the bare minimum, so that skiers had to come back year on year, paying for more lessons, in order to progress.

Ironically, that same claim is now being made by other ski professionals in response to the new trend in easy-to-learn skis.

The research and development of 'radicals' -- acutely waisted carving skis -- that enhance turning on and off-piste, the production of Fat Boys, wide skis that make powder skiing much easier and the marketing of the new fun Snowblades (ultra short skis) have meant a much shorter learning curve for beginner skiers.

The latest addition is the Twin-tip ski, a combination carver and snowblade with a curved tip on both ends. This allows the skier to work with or without poles in a way that mimics the freestyle ability of the snowboarder.

Now three days of lessons with this equipment means a competency and control that took weeks before. More than that, the culture of snowboarding, which was youth orientated and against organised teaching, has permeated the whole wintersports ethos. Kids who taught themselves to skateboard or bought a bike and learned stunt riding through trial and error were not likely to be seduced by military style schooling

The snowboard has slipped into the mainstream of wintersports and the grunge image has faded, but the freeform approach has a resonance with new skiers.

So whether snowboards, carvers twin-tips or snowblades there is a need for a new, more relaxed, fun feel to the teaching. It would certainly make marketing sense. Moreover, if the ski industry won't provide learning they like, then the evidence is that skiers will simply teach themselves.

While this is wildly anarchic and exciting there is a serious downside. The mountains are dangerous. Inexperienced people going off piste may manage the terrain, but may not understand the inherent dangers.

This seems like a great opportunity for the industry to stimulate sales while securing safety.


RESORTS:

Thomson (www.thomson-ski.co.uk/0870 6061470) is adding five new resorts in Austria, plus one each in Italy and Slovenia. It has also introduced a Eurostar train service on Friday nights to supplement the Saturday snow trains.

Airtours (www.airtours.co. uk/0870 6081950) features more than 45 resorts in six countries serviced from 10 UK airports. Last season it pioneered Ski Weekends and these are now a permanent feature. It also offers upgraded flights -- a ski Club class -- under a Premiair banner.

Neilson (www.neilson. co.uk/0990 141414) was the pioneer of tour operator resort guides, although it cannot now use the word "guides" because of confusion with mountain guides. Its in-resort service includes options from basic ski school to specialist learning powder and mogul clinics. Neilson has a comprehensive resort programme serviced by flights from all major UK airports, three rail options and a self-drive programme.

First Choice (www.first choice.co.uk/ 01273 677777) is banking on a return to Austria and has introduced new resorts and chalets there. It has also reintroduced Verbier, Saas Fee and Crans Montana in Switzerland, bringing the programme to 67 resorts across seven countries. Additionally, it offers the Total Ski Package all-inclusive holiday. Prices quoted include flights, transfers, accommodation, food and free drinks from 4 pencem until midnight, 12 hours of ski or snowboard tuition and a lift pass.

Inghams (www.inghams. co.uk/020-8780 4444), which had the first online booking service, has more than 70 resorts in Europe in two brochures -- World Class Ski and the upmarket Ski Luxury. There are flights from 14 UK airports and rail and car options.

AIRLINES:

Air France: 0845 0845 111; Alitalia: 020-7602 7111; Austrian Airlines, Crossair and Swissair: 020-7434 7300; British Airways: 0345 222111; EasyJet: 0870 6000 000; Go: 0845 6054321; Ryanair: 0541 569569.

INTERNET SITES:

One of the best websites for European skiing is www. thealps.com, which contains piste maps, bulletin boards, three-day weather forecasts, photographs of hotels and online reservations.

The Ski Europe www.interactivemagazines.com/ski site shows snow conditions and the percentage of lifts open in more than 40 European resorts.

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