![]() So despite a price increase this will not result in decreases in Ikonpass sales / skier visits but may actually increase it.īoth passes are already targetted towards upper middle/ committed skier/ski families, not marginal or 1-time a year skiers and passholders can already afford it. So this begins to be more like a Veblen luxury good rather than standard good. People are ready to jump ship and pay more so they no longer have to mingle with the poors. You can just take a look at the VailResort threads to see this in play. People would actually prefer the prices to be priced higher as you will get what you pay for and result in a better experience (less crowded, better employees). Day ticket costs have also way exceeded inflation over time, although personally I feel that this issue is slightly overblown when beginners packages often are affordable, and frankly most beginners are better served by smaller, community ski areas and not the expensive behemoths.Īnother aspect is the product provided is not fixed, and has a dependency on on the price and passes sold. STR restrictions can be good for locals looking to buy or rent homes, but do push up the cost of lodging for visitors. Transportation costs are up (try buying a new or used car right now) along with gas, and I know that in certain areas lodging is up too. Housing costs in mountain communities have gone up way above inflation, making it difficult for employees and others to live close to the mountains. To me, the issue of a modest price hike that is barely above inflation is not the core issue behind skiing becoming increasingly unaffordable. ![]() In real (inflation-adjusted) terms, they are barely changing the price at all. While price increases and inflation are never enjoyable, Alterra's price increase feels reasonable in the current inflationary environment. I would be surprised if Alterra/Ikon's costs did not go up by at least that much in the last 12 months, although this is speculation on my part. Inflation was 7%, so the price increase of the Ikon Pass exceeds general inflation by about $10. The price of the Ikon Pass with no renewal increased from $999 to $1,079. Some industries, such as Leisure & Hospitality and Retail Trade actually saw real wage growth, as in wage growth in these sectors was on average higher than inflation. Obviously there is variance here, and interestingly some sectors did better than others. This means that most Americans have less earning power today than they did 12 months ago. ![]() Inflation over the last 12 months in the US is around 7%, whereas nominal wage growth has only been 4.5% over the last 12 months, meaning that real wages in the US are down. ![]() To broaden your question about inflation: if real wages go down, as in inflation is greater than wage growth, then everything becomes more out-of-reach, not just skiing. ![]()
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