Strange Pricing Tactics from Boyne

[WJenness]

Sugarloaf: 8 miles open, 18 trails, 5 lifts, 10-12" from the storm the other day.
Adult Lift Ticket: $45
Trail ratings:
Green 9
Blue 7
Black 1
Double 1


Sunday River: 10 miles open, 24 trails, 4 lifts, 12-14" from the storm the other day.
Adult Lift Ticket: $49
Trail ratings (adds to 26, but they cite 24 in the snow report):
Green 8
Blue 12
Black 6
Double 0

Loon (Opening tomorrow): 4 miles open, 11 trails, 3 lifts (Gondola, North Peak Express, and childrens carpet)
Adult Lift Ticket: $59!
Trail ratings:
Green 7
Blue 4
Black 0
Double 0


Is it just me, or does Loon's price seem out of whack with what the two sister resorts are offering?

I wonder if the individual resorts or Boyne set the prices...

It strikes me that you get a much better value in ME than NH...

Maybe they're going for the novice day tripping market?

Just thought it was odd and worth discussion.

-w

 

[billski]

Bingo, we have a winner.
"Maybe they're going for the novice day tripping market?"

Classic supply and demand. Hardly anyone is overnighting in December - too busy rushing to finish work, shopping, egg nog.

 

[dcarbs]

loon is also two hours from boston, sugarloaf and sunday river are much farther.

 

[glemak]

saw this in vermont last weekend as well - killington was $59 for limited trails open & okemo was $30 for also limited open - much more snow in vermont this weekend though

 

[riverc0il]

Loon's pricing structure has always been out of whack, not just recently against other Boyne resorts, but against most respectable resorts in the Northeast. One of the worst values around. But they can charge that much because they are still packed to the gills and uber crowded on weekends despite not have the product that many better resorts offer... sometimes even for a lower price. The biggest resort within two hours of Boston could probably get away with charging Stowe like prices without fear of loosing much market share.

 

[billski]

Loon's pricing structure has always been out of whack, not just recently against other Boyne resorts, but against most respectable resorts in the Northeast. One of the worst values around. But they can charge that much because they are still packed to the gills and uber crowded on weekends despite not have the product that many better resorts offer... sometimes even for a lower price. The biggest resort within two hours of Boston could probably get away with charging Stowe like prices without fear of loosing much market share.

exactly to my supply and demand comment. If demand ever slackens, you'd probably see some re-thinking of prices. It's interesting how the Loon juxtaposition against Waterville and Cannon plays out. WV tends to play to a slightly lower economic market, and of course has less challenging terrain. Another 10 mins up the road. Cannon, arguably more challenging, is more rough around the edges, has an oft-undeserved reputation for ice, wind and cold. Being state-owned, they don't feel the need to work as hard. Of the three, Loon is the most aggressive marketeer in the Boston market. I'm a bit surprise that more folks don't day trip to Breton Woods from Boston. It isn't that much further from Cannon, perhaps 20 minutes. Well, each area seems to carve out its own market, and there are clearly enough skiers to keep them, along with the midmarket areas in ski93 area all in business.

 

[ski_resort_observer]

Loon is nearing the completion of a large developement, Park South. New trails, lift and condos. It's all about the balance sheet and debt. Egg nog is availible everywhere and just tastes better in the mountains. :wink:

 

[Vortex]

I think Loon had a record year in skier visits last year. The location and the economy fit well with many who chose to be day skiers instead of making a couple day destination trips, well that is my guess.

I have heard others mention that high pricing early season is to control the amount of people on the hill. Not sure if I agree or not, but plausible.

Loon raising its prices was the the straw that pushed me over the edge in moving to Sunday river full time. Kind of humours that loon was is run by Boyne now.

Pricing is usually set at what the market will handle. If people come its priced right, if they don't then its prices wrong.

 

[ski_resort_observer]

I think Loon had a record year in skier visits last year. The location and the economy fit well with many who chose to be day skiers instead of making a couple day destination trips, well that is my guess.

I have heard others mention that high pricing early season is to control the amount of people on the hill. Not sure if I agree or not, but plausible.

Loon raising its prices was the the straw that pushed me over the edge in moving to Sunday river full time. Kind of humours that loon was is run by Boyne now.

Pricing is usually set at what the market will handle. If people come its priced right, if they don't then its prices wrong.

Lots of good points. Sounds like from your posts your having a great up at SR. I still haven't totally figured out the big resort sale/lease back dance a couple of years ago between CNL, ASC, Booth Creek, Loon and Cranmore. I think WV was in there somewhere. We got another hit of nice dry powder last night so I need to get up to the mountain, with more this afternoon, so don't have time to find my notes.

A couple of summers when I walked around Loon and talking to folks I got the idea that Loon with it's new developement saw itself as marketing the "new" Loon as alittle more upscale.

Like Bob said market price acceptance will be known in a few months. As mentioned by others it's location is a benefit for the out of state folks, winter and summer.

 

[Vortex]

I like much of what Boyne had done, but it will take a few years to see where we end up.

The slopeside option at Sunday River is a big hit with the kids and fun family skiing starts with the kids being happy. Well they really don't ski with me that much. Too many friends to hang with the old man.:razz:

 

[Telemechanic]

I've nothing to add, I agree location is Loon's leverage for higher prices, but I'd like to clarify some things purely for accuracy.

Loon's South Peak trail pod is planned for completion for the 2011-12 season, two more trails to go.

The South Peak Resort, which isn't owned by Loon, has no completion schedule that I know of but only a small portion has been built: around 20 homes, five townhouse units and no resort amenities.

CNL does own Loon, Sunday River and Sugarloaf and Boyne holds leases to operate the resorts. Waterville Valley and Cranmore are still owned and operated by Booth Creek (B.C. does lease two western CNL resorts: North Star and Sierra-at-Tahoe)

Opening day at Loon was very good especially considering how long it took to get here. We had the terrain and lifts mentioned above (plus the East Basin Double) and more trails and lifts will be added Saturday and Sunday. The snow was firm in places but there was some softer stuff around too. The natural snow really helped and the colder temps of the last few days also helped the snowmakers dry up the guns in the days leading up to today.

 

[ski_resort_observer]

I've nothing to add, I agree location is Loon's leverage for higher prices, but I'd like to clarify some things purely for accuracy.

Loon's South Peak trail pod is planned for completion for the 2011-12 season, two more trails to go.

The South Peak Resort, which isn't owned by Loon, has no completion schedule that I know of but only a small portion has been built: around 20 homes, five townhouse units and no resort amenities.

CNL does own Loon, Sunday River and Sugarloaf and Boyne holds leases to operate the resorts. Waterville Valley and Cranmore are still owned and operated by Booth Creek (B.C. does lease two western CNL resorts: North Star and Sierra-at-Tahoe)

Opening day at Loon was very good especially considering how long it took to get here. We had the terrain and lifts mentioned above (plus the East Basin Double) and more trails and lifts will be added Saturday and Sunday. The snow was firm in places but there was some softer stuff around too. The natural snow really helped and the colder temps of the last few days also helped the snowmakers dry up the guns in the days leading up to today.

Let's be clear here. Loon's South Peak develpement on the mountain is open. A new lift with several trails is not cheap. It took financing which equates to debt. I don't think it's a big stretch to rationalize increased ticket prices for a larger and expanded product. Course, in the last 10 years, a major expansion like South Park or Jackson Gore are few and far between. Wasn't there some sort of accident with the new lift after it first opened?

Thanks for the clarification on WV and Cranmore. It's somewhat interesting that these same resorts were the ones that Otten had to sell by court order when he bought SKI ltd and was found to have too many resorts, controlling too much of the regions resorts.

The South Park Resort at the base might not be owned by Loon but for all intents and purposes it is part of Loon. Many of the condo/second home complexes at most resorts are not owned by the ski resort. Not too surprising in view of the economy and the real estate market that the South Park Resort has been delayed.
http://www.loonmtn.com/images/loon-map-lg.jpg

 

[billski]

I greatly appreciate SRO's knowledge and observations.

I just wish we could stop calling slopes and trails a "product."

I'm not singling out SRO, but ranting about marketing groups in most any industry. It is lingo like that which gives marketing organizations a bad rep. Technically, the word may be correct. But inventing a separate vocabulary instead of using plain English gives good cause to accuse marketing groups of being in "la-la land."

p.s., Is there some reason the road from Loon to South (mountain side) is barricaded and unplowed? I had wanted to go check it out after a day on the slopes last year and "couldn't get there from here". I went back across the river and went home.

 

[AMAC2233]

I greatly appreciate SRO's knowledge and observations.

I just wish we could stop calling slopes and trails a "product."

I'm not singling out SRO, but ranting about marketing groups in most any industry. It is lingo like that which gives marketing organizations a bad rep. Technically, the word may be correct. But inventing a separate vocabulary instead of using plain English gives good cause to accuse marketing groups of being in "la-la land."

p.s., Is there some reason the road from Loon to South (mountain side) is barricaded and unplowed? I had wanted to go check it out after a day on the slopes last year and "couldn't get there from here". I went back across the river and went home.

I think they try to keep as many cars off that road as possible because of all the condos and homes along it. The South Peak side is all new and very expensive development, and the Loon side is older yet still private nonetheless. I would imagine the home owners don't want Cadillac Esclades constantly whipping by there at 40 MPH. I could be wrong, but any time I've ever driven down there, I've always gotten a you're-not-wanted-here feeling.