For business owners, managing demand can be one of the biggest challenges in the snowsport industry. Businesses have to deal with both the seasonal cycles in demand and the impact of changing snow conditions. A key tool in meeting these challenges can be effective marketing.

In this article we will look at:

• Three common problems with managing demand in the ski industry
• Common marketing themes in effectively managing demand
• Using marketing to drive off-peak demand
• Using marketing to spread out high peak season demand
• Using marketing to reduce variability in demand season-to-season

Most snowsport businesses will be familiar with the problem of managing demand. Peak season commands high prices, but the shoulder season is hard to fill.

Meanwhile, bumper snow conditions causes demand to surge, while reports of no snow scare guests away.

This leaves winter businesses looking to maximise revenue when demand outstrips the number of guests they can serve, and then fight to fill capacity during off-peak periods or when poor conditions cause demand to fall.

These ebbs and flows in demand would be difficult enough to manage if they were the same each year. But different timings of holidays (often across multiple nations) linked to snow conditions can create unpredictable patterns of demand that make business planning extremely challenging.

The upside of this is that challenge is the companion of opportunity. Where there is complexity and unpredictability – there is frequently the room to seek out an advantage over your competitors.

This is where a considered marketing strategy can help. While an effective ski marketing approach is not a silver-bullet to solve the problem, it can be a key-part of the puzzle in managing demand and maximising revenue.

Common problems with managing demand in the ski industry

The problems businesses have in managing demand are far from universal, but they tend to be linked to three core problems:

• Off-peak season demand is low and there is excess capacity
• Peak season demand is high but there is not the capacity to fill it
• Demand season-to-season is unpredictable due to variable snow conditions

Your business could have just one of these issues, or a mix of all of them. And most likely, your competitors will as well. By grasping the nettle and proactively addressing these challenges, you’ll might also find the space to outcompete your main competition.

Common marketing themes in effectively managing demand

So, if those three problems are the main issues around demand, what are some of the ways marketing can help? While there is no one playbook approach to these problems, a number of common marketing themes do emerge. These include:

• A holistic approach to marketing
• Tailored marketing messages to different consumers
• A well thought out marketing schedule

But what does that mean in a more practical sense? How do we build these themes into an effective ski marketing strategy and plan. Let’s take a look.

Use marketing to drive off-peak demand

One of the most common problems in the ski industry is how to fill capacity in the off-peak or shoulder seasons.

This is simultaneously one of the simplest, but most challenging problems to fix. It is straight-forward in that it is the best solution is an effective marketing campaign and dynamic pricing to drive demand. The challenge is your competitors know this and are most likely already doing it.

To meet this problem, excellence in marketing execution is key.

Look at what your competitors are doing and look for gaps, or areas you can do better. The most common area of opportunity you’ll see is around linking individual marketing tactics together. In other words a holistic marketing approach.

Marketing tactics used together amplify the impact of each individual marketing tactic. Consider an all-round approach to ski marketing and treat your tactics holistically. Let your marketing tactics work together for the biggest impact.

Use marketing to spread out high peak season demand

This can be a more challenging issue to address. The obvious first route is to see how to raise your business capacity to meet demand. However, capacity often quickly hits a fixed limit. And a limit that be very difficult to raise capacity past – a hotel cannot easily increase it’s number of rooms for example.

Even when you can increase capacity, it also has to be increased in a sustainably manner. This avoids creating excessive capacity that could not be sold in the off-peak season.

An example of this is a ski school would not want to hire all the instructors it needs to service demand in peak season for the entire season. As it will then be left with more ski instructors than it could sell lessons for in the off-peak season.

How can marketing help spread demand

Marketing can help with this challenge by moving demand away from peak season, and to spread it more evenly throughout the year.

Some customers will have to book in peak season – for example parents of children have to travel in the school holidays.

But many clients have greater flexibility.

A young professional might be able to make the most efficient use of their holiday allowance by timing it around national holidays. So will initially be tempted to book in this period. But, with the right incentives (price or alternative offers) they could be convinced to book their trip in a less busy period. In other words, trading their holiday allowance for other benefits.

The most common way this is done is through dynamic pricing. Pretty much every snowsport business will use some form of dynamic pricing. This can vary from the advanced algorithms we see in many accommodation booking services, down to a simple two-tier pricing model (on and off-peak pricing).

However, it is not just reduced prices that can encourage people to book outside of peak-periods.

Demand can also be shifted by using different marketing messages to different audiences.

An advanced skier might want to ski when the snow conditions are at their best. But a beginner skier might not be aware that they don’t need the best snow conditions to learn to ski – and actually learning in spring with the warmer weather might be the best time for them to book.

By understanding your audience, you can segment them into different groups, and then tailor your message to each group to help spread demand throughout the season.

At its most effective this type of marketing can help you minimise price reductions needed to fill capacity.

This can work especially well when targeting clients who have booked with you in previous years. Leverage the relationship and trust you have built to make positive recommendations.

Reduce variability in demand season-to-season

The final key challenge many winter businesses experience is that demand can vary significantly season to season based on snow conditions – what can be a bumper season one year can be a blowout the next.

Many clients will research snow conditions and chase the best snow. This means destinations with marginal snow conditions can see severe demand losses of up to 60% if alternative ski destinations are available.

This presents business a dilemma - as skiing conditions are increasingly hard to guarantee demand is increasingly reliant on snowfall conditions.

How can marketing help reduce the link between snow conditions and demand

This is where using marketing to de-couple demand from snow conditions becomes important.

Just like spreading demand away from peak season, this can be done by carefully considering who you are targeting with your marketing messages.

But an extra element that comes into play is the timing of your marketing message.

These two elements are interlinked, with different types of guests having different booking patterns – the trick here is around tailoring the right message, to the right consumer at the right time.

Your first step should be to look at your key booking periods.

Through the years you’ve probably come to identify what the peak booking periods are for your business. The obvious conclusion here is that where there is the peak booking period is where you should focus your marketing activity.

However, the important question to ask is to see not just when clients are booking. But what type of client is booking at different stages.

A common pattern you’ll see is less flexible clients booking from further out. They might be travelling from further away (maybe even long-haul) and have to book their travel and accommodation well in advance to ensure their holiday goes off without a hitch.

This will often be far in advance of having any possible knowledge of the seasons upcoming snow conditions. And will be less sensitive to the skiing conditions when they arrive.

These will be opposed to more flexible guests. They will often be more opportunistic. They might not be tied to one resort and able to travel at short notice. They’ll Keep their eyes peeled for good conditions and better deals.  These guests are more likely to be sensitive to snow condition reports.

It is important to remember that for many ski tourists the quality of the snow does not play a significant factor in their enjoyment of the holiday. Many guests would happily trade slightly more limited terrain for a few extra days of sun. But reports on snow conditions can still impact their perception of whether to book or not.

Now you have identified what guests are booking and when they are booking, your goal is to plan out your marketing to deliver messages that appeal to these consumers at appropriate times.

Ideally the key aim of this is to move as much of your revenue as possible to before the snow conditions become clear. Especially those who’s enjoyment of the trip will not be impacted by snow conditions. Therefore, guaranteeing you consistent revenue no matter what the conditions end up being.

This can be done simply (just changing your social media posts message and timing) or with extremely high levels of sophistication (a marketing CRM linked to your customer data to provide extensive personalisation).

If you are looking for a specialist ski marketing consultant for your winter sport business and would like to discuss your options - get in touch and book a complimentary consultation with one of our marketing experts. We will be able to chat through possible approaches to your marketing and advise you on next best steps.

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