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The stock market plummeted to a six-year low on Thursday. Unemployment is at a 14-year high. Acording to a recent Gallup poll, 55 percent of Americans are cutting back on household spending, mostly in the travel and entertainment departments.
And, to top it off, Lake Tahoe is coming off consecutive below-average snowfall winters.
All of this would indicate that a bleak winter is ahead for South Shore businesses and ski resorts. But the No. 1 rule of real estate — location, location, location — might apply to something other than Lake Tahoe’s traditionally strong property values.
“We have the benefit of having such a large market within driving distance, so strategically we’re in a better position than our colleagues in the Rockies who rely more on air travel,” said Bob Roberts, executive director of the California Ski Industry. “We’re really kind of in uncharted waters here. But in the early 1970s during the gas crisis and a recession, skiers still made their way to the slopes.
“I don’t want anybody to think that we’re immune from the overall economic situation that the country is facing, because we’re not. But having said that, when you look back at what happened during the Great Depression, one thing that was very buoyant was entertainment. A lot of people still went to movies because they wanted to escape their troubles. We’re hoping a little bit of that rubs off on us.”
After a wet start to November, Kirkwood and Heavenly both had scheduled opening dates for this weekend. But warm and dry conditions during the middle part of the month have pushed back their tentative opening dates to Thanksgiving weekend. Sierra-at-Tahoe has limited snowmaking capabilities and doesn’t open until there is sufficient natural snow.
South Shore hotel owners usually report an increase of bookings when major storms pass through the area — not when resorts announce their opening dates — but a series of weak weather systems this fall didn’t equate to much. Bookings for the holiday period (Thanksgiving to New Year’s) are down 10 percent compared to this time last year, according to the South Lake Tahoe Lodging Association.
“There has to be a decent-size dump to affect bookings,” said Pat Ronan, a represenative for the lodging association and the owner of Tahoe Lakeshore and Spa. “Most travelers plan their trips in a shorter window than they used to. They’re not planning vacations three and four months out. They’re planning in a matter of weeks, so weather becomes a larger variable with a shorter window. Right now, bookings in areas such as Park City and Colorado are down because those destinations count on their fly-in markets. Lake Tahoe has a drive-in market, so people can still travel at an affordable rate.”
If Ronan and Roberts are correct, South Shore businesses should also benefit from lowering gas prices.
After reaching $4.80 per gallon for unleaded gas during the summer, a threshold many predicted would cripple drive-up tourism, gas has decreased nearly 50 percent in six months. On Thursday night, a gallon of unleaded gasonline at Tahoe Tom’s was $2.45, and South Lake Tahoe gas prices tend to run 20 to 25 cents higher than most parts of Northern California.
Still, local ski resorts aren’t relying on a drive-up market and lowering gas prices to attract visitors.
Heavenly is offering a $50 “Baggage Bailout” credit when guests book at least a four-day, four-night vacation by Dec. 1 through Vail Resorts, Heavenly’s parent company. To receive the credit, guests must also purchase at least four days of adult lift tickets. Epic Season Pass holders also qualify for the credit as long as they purchase at least four nights of lodging.
Heavenly is also offering a “Kids Eat Free” package. When parents book a three-day, three-night vacation by Dec. 14, they will get up to $30 in daily dining credits per child to use at Heavenly’s on-mountain restaurants.
“We know that the economy is going to play a role in our guests’ decisions, so we’re trying to make skiing and snowboarding as accessible and affordable as possible, and provide an exceptional experience once they get here,” said Heavenly spokesperson Russ Pecoraro.
At Kirkwood, guests who book vacations before Dec. 1 will receive $100 off a regular mid-winter two-day, two-night package that also includes two adult lift tickets. The resort also gives guests a 20 percent discount on lodging and ski/ride packages when they use an American Express credit card.
With Sierra-at-Tahoe offering a 3-pak ticket deal for $135 that allows guests to ski or ride for $45, it appears all three resorts are cognizant of the current economic climate. But they can’t do anything about the weather, which always seems to be the great equalizer.
“What we need now is snow,” said Jere Crawford, a freestyle coach for the Heavenly Ski and Snowboard Foundation. “No matter how bad the economy gets or how stressful things get, I think people are always going to want to have fun and get away from things. That’s what Tahoe has always been about, having fun.”
— Bonanza News Service writer Sara Thompson contributed to this report.
And, to top it off, Lake Tahoe is coming off consecutive below-average snowfall winters.
All of this would indicate that a bleak winter is ahead for South Shore businesses and ski resorts. But the No. 1 rule of real estate — location, location, location — might apply to something other than Lake Tahoe’s traditionally strong property values.
“We have the benefit of having such a large market within driving distance, so strategically we’re in a better position than our colleagues in the Rockies who rely more on air travel,” said Bob Roberts, executive director of the California Ski Industry. “We’re really kind of in uncharted waters here. But in the early 1970s during the gas crisis and a recession, skiers still made their way to the slopes.
“I don’t want anybody to think that we’re immune from the overall economic situation that the country is facing, because we’re not. But having said that, when you look back at what happened during the Great Depression, one thing that was very buoyant was entertainment. A lot of people still went to movies because they wanted to escape their troubles. We’re hoping a little bit of that rubs off on us.”
After a wet start to November, Kirkwood and Heavenly both had scheduled opening dates for this weekend. But warm and dry conditions during the middle part of the month have pushed back their tentative opening dates to Thanksgiving weekend. Sierra-at-Tahoe has limited snowmaking capabilities and doesn’t open until there is sufficient natural snow.
South Shore hotel owners usually report an increase of bookings when major storms pass through the area — not when resorts announce their opening dates — but a series of weak weather systems this fall didn’t equate to much. Bookings for the holiday period (Thanksgiving to New Year’s) are down 10 percent compared to this time last year, according to the South Lake Tahoe Lodging Association.
“There has to be a decent-size dump to affect bookings,” said Pat Ronan, a represenative for the lodging association and the owner of Tahoe Lakeshore and Spa. “Most travelers plan their trips in a shorter window than they used to. They’re not planning vacations three and four months out. They’re planning in a matter of weeks, so weather becomes a larger variable with a shorter window. Right now, bookings in areas such as Park City and Colorado are down because those destinations count on their fly-in markets. Lake Tahoe has a drive-in market, so people can still travel at an affordable rate.”
If Ronan and Roberts are correct, South Shore businesses should also benefit from lowering gas prices.
After reaching $4.80 per gallon for unleaded gas during the summer, a threshold many predicted would cripple drive-up tourism, gas has decreased nearly 50 percent in six months. On Thursday night, a gallon of unleaded gasonline at Tahoe Tom’s was $2.45, and South Lake Tahoe gas prices tend to run 20 to 25 cents higher than most parts of Northern California.
Still, local ski resorts aren’t relying on a drive-up market and lowering gas prices to attract visitors.
Heavenly is offering a $50 “Baggage Bailout” credit when guests book at least a four-day, four-night vacation by Dec. 1 through Vail Resorts, Heavenly’s parent company. To receive the credit, guests must also purchase at least four days of adult lift tickets. Epic Season Pass holders also qualify for the credit as long as they purchase at least four nights of lodging.
Heavenly is also offering a “Kids Eat Free” package. When parents book a three-day, three-night vacation by Dec. 14, they will get up to $30 in daily dining credits per child to use at Heavenly’s on-mountain restaurants.
“We know that the economy is going to play a role in our guests’ decisions, so we’re trying to make skiing and snowboarding as accessible and affordable as possible, and provide an exceptional experience once they get here,” said Heavenly spokesperson Russ Pecoraro.
At Kirkwood, guests who book vacations before Dec. 1 will receive $100 off a regular mid-winter two-day, two-night package that also includes two adult lift tickets. The resort also gives guests a 20 percent discount on lodging and ski/ride packages when they use an American Express credit card.
With Sierra-at-Tahoe offering a 3-pak ticket deal for $135 that allows guests to ski or ride for $45, it appears all three resorts are cognizant of the current economic climate. But they can’t do anything about the weather, which always seems to be the great equalizer.
“What we need now is snow,” said Jere Crawford, a freestyle coach for the Heavenly Ski and Snowboard Foundation. “No matter how bad the economy gets or how stressful things get, I think people are always going to want to have fun and get away from things. That’s what Tahoe has always been about, having fun.”
— Bonanza News Service writer Sara Thompson contributed to this report.
