Winter 2008-2009: fewer lift tickets sold?

We seem to have the "perfect storm" of expensive gas and a tanking economy. Between the PNW and a work trip to CO I probably bought 8 lift tickets last winter, plus a few for the family. It's gonna be less this year. It will be more important than ever to be super-selective before committing to a day of lift skiing that is for sure. How will "the industry" fare?

This is timely and hearkens back to my surprise of rising lift ticket prices (though I realize that this strategy is aimed at recouping higher operating expenses.) However, it costs the same amount of money to run a lift if there is 1 skier or 100. And if the one skier is a pass holder... It is ticket sales that bring new, daily revenue (along with the $6 cheeseburgers).

I believe that we will see an adjustment of lift ticket prices and "deals" as we experience the further effects of the economic slide before the inevitable recovery as resorts do what it takes to bring in cash.

In the meantime, resorts are feeling the pressure of the credit crunch:

Tamarack has filed for bankruptcy and ( blog.luxuryproperty.com/tag/luxury-ski-resort/ ), etal

Moonlight is battling rumors that it is going under and though the CEO denies it, the local buzz is different

Some east coast resorts are also in trouble.

The good news is that less skiers means more powder and shorter lift lines for me.

The sad thing is that these ticket prices make it harder to proselytize and promote one of the most sublime experiences in the world, skiing, and doing so in a great place to ski and be, Crystal Mountain in particular and the Cascades in general. This is something I want everyone to have the opportunity to experience.

Just my two cents which might be what my thoughts are worth!

Good points - it seems like lift skiing definitely must be impacted to some extent, as a "discretionary expenditure". I'm curious to see what the lift lines will be like this winter - they sure seemed busy last winter, at least on Mt. Hood...

I wonder about backcountry skiing?

Would a recession mean more people would opt for the relatively cheaper option to keep skiing -or- are we all going to be too busy selling pencils and apples on the street corner to do much recreating at all? (scary thought)

I can't imagine the economy increasing backcountry skiers. A season pass at many ski resorts costs about the same as a set of Dynafit bindings, let alone the shovel, beacon, probe, etc.

The silver lining is that passholders will probably continue to get good deals as the credit crunch only increases the demand for pre-season operating capital.

Having that liquid $$$ is of course the real reason behind the general shift in the ski industry towards relatively cheap season passes while tickets remain very pricey.

Modified December 3 to update:
Here's a new article from the NY Times about the Yellowstone Club debacle.
Economy Crashes the Gates at a Club for the Rich

Original post:
Not that the Yellowstone Club sells tickets, but they have filed for bankruptcy. Obviously Blixen's divorce was very expensive for him. Maybe the old saw is true: two can live cheaper than one --but only for half as long!

Exclusive Yellowstone Club files for bankruptcy

By MATTHEW BROWN – 13 hours ago

BILLINGS, Mont. (AP) — The Yellowstone Club, an exclusive mountain retreat for the ultra-rich, said it filed for bankruptcy Monday after failing to secure new financing — underscoring that even the elite can't escape the country's current economic troubles.

Spokesman Bill Keegan said the club filed for Chapter 11 protection in federal bankruptcy court in Montana. The move came just two months after the club announced an ambitious expansion plan through a partnership with the Arizona-based Discovery Land Company.

The gated, millionaires-only club on 13,400 acres in Montana's Gallatin Mountains boasts a private ski hill and golf course. Opened in 1999, it counts former Vice President Dan Quayle and Microsoft co-founder Bill Gates among its 340 members.

In a statement to The Associated Press, the club said it had been unable to secure financing arrangements with its creditors and bondholders. It plans to reorganize its finances and emerge from bankruptcy "as soon as possible," the statement said.

"We felt this step was necessary to address short-term liquidity constraints and preserve Yellowstone Club's long-term future," Yellowstone Club CEO Edra Blixseth said.

Monday's bankruptcy filing marked the latest in a string of shake-ups at the club. Its billionaire founders, Tim and Edra Blixseth, recently divorced, and in August the club settled a lawsuit brought by club member and cycling superstar Greg LeMond for $39.5 million.

LeMond and several co-plaintiffs had accused Tim Blixseth of trying to buy out their minority stake in the club for less than its true value.

After emerging from her divorce with control of the club, Edra Blixseth in September laid out plans to build 450 more houses and condos and new amenities including a luxury spa, golf clubhouse, baseball field and more ski runs.

Those plans are on hold pending resolution of the club's financial woes.

Keegan says the club has financing in place for day-to-day operations and plans to be open for the ski season. The club's estimated 600 winter employees still have jobs, but Keegan said layoffs were possible "down the road."

The tony club first ran into financial trouble when Tim Blixseth sought to expand even as the real estate market turned south.

Its problems grew after the Blixseths allegedly diverted money meant for the club to their own use, according to court documents. At roughly the same time, Tim Blixseth went on a property-buying spree in a bid to take the club concept global, with an enterprise called Yellowstone Club World.

Among his purchases were a chateau in France, a golf resort in Scotland, a villa in Mexico and an estate in the Caribbean.

Earlier this year, a deal to sell the club for a reported $455 million collapsed, leaving Tim and Edra Blixseth feuding over control of the enterprise. Since taking control, Edra Blixseth has moved to sell off some of the club's international properties to firm up the club's finances.

But Keegan said efforts to secure new financing stalled as credit markets tightened with the crisis gripping the nation's economy.

"The lending markets froze up so they could not structure a credit facility to their fashion," Keegan said. "They felt this was the best way to protect the members and protect the club and its future."