Friday, June 20, 2008
Telluride Bluegrass Festival in Full Swing
As the Summer Solstice quickly approaches, the Town of Telluride is fully immersed (or overrun) by the Telluride Bluegrass Festival. The 35th anniversary festival has produced an excellent line up which includes a closing act tonight by a reunion of Leftover Salmon. My favorite performer, Peter Rowan, will also be playing this afternoon. The weather has finally turned for the better over the past week with more typical June summer days. It'll be interesting to see how the rest of the summer's weather unfolds given the epic winter (snow and cold) we've just had!
Saturday, June 14, 2008
Aspen Mountain Re-Opens For Skiing & Snowboarding
I was pleasantly surprised (but not floored) to read that Ajax is currently open this weekend for skiing and snowboarding on limited terrain! Still contemplating making the 4hr+ drive early in the morning tomorrow, but the limited hours (10am - 1pm) makes it kind of difficult to leave at 6am and get in my full nickel's worth. I don't know if I'd want to leave today and have to be immersed in the summer tourist season and high prices (there's a food and wine festival going on now)? So, we'll see. Lift served access is still an option in June!
Would the Telski ever do something like this? I've lived here since '95 and have NEVER seen any sort of extension of the ski season, so I'm not holding my breath. While I haven't gotten an up close look, my guess is that lifts 4 & 9 are probably both sitting pretty good in terms of snow near the top stations with decent pathways coming down. Even if it's sketchy today, it was probably very doable in mid May.
So, what does this all say? Has Aspen come full circle after its build out? Is Telluride still just keeping it's head down and putting one development foot after another without any regard for the soul which has kept this town together? Will it take a complete gutting of the community before Telski offers up the goods? Cynical? Maybe. But we've been dropped many a clue over the course of Dave Riley's tenure at the helm of Telski .... the delayed opening of lift 9, removal of automatic end of season retro bonus for Telski employees, and even the opening of new hike-to terrain tells a certain story if you read between the lines.
Would the Telski ever do something like this? I've lived here since '95 and have NEVER seen any sort of extension of the ski season, so I'm not holding my breath. While I haven't gotten an up close look, my guess is that lifts 4 & 9 are probably both sitting pretty good in terms of snow near the top stations with decent pathways coming down. Even if it's sketchy today, it was probably very doable in mid May.
So, what does this all say? Has Aspen come full circle after its build out? Is Telluride still just keeping it's head down and putting one development foot after another without any regard for the soul which has kept this town together? Will it take a complete gutting of the community before Telski offers up the goods? Cynical? Maybe. But we've been dropped many a clue over the course of Dave Riley's tenure at the helm of Telski .... the delayed opening of lift 9, removal of automatic end of season retro bonus for Telski employees, and even the opening of new hike-to terrain tells a certain story if you read between the lines.
Friday, June 13, 2008
Still dwelling in Telluride about the season pass
Although I certainly don't wake up in the middle of the night in a cold sweat thinking about the rate hike on the season pass for the upcoming season in Telluride, when it does cross my mind I get somewhat depressed and kind of angry.
For the most part, I'm a true believer in the purity of the free market ; however, when it comes to the utilization of limited public lands as a substantial foundation for a private interest to seek financial gain, I think there needs to be a certain level of regulatory controls and oversight. I'm all for a business making healthy profit, but I do believe fair and reasonable access to public lands ought to trump the former.
Aside from my underlying philosophical notions, the price increase is something which most people in town are just flat bummed out about. The cost was high enough at $1,000 last year ... let alone $1,200 this season if you're able to swing the early bird rate. Otherwise, you're shelling out $1,850 regular rate for adults. By comparison, a season pass at Arapahoe Basin is $309 for 2008/2009. If you live in Summit County Colorado, you can ski or snowboard all season (which lasted until June this year) for about 1/4 the price of Telluride. Granted the lift lines and parking can get insane at A-Basin, but you can still get in your days skiing or snowboarding by being selective of times and such.
Given how difficult it is to stay afloat financially in Telluride, it's hard to break away from work to get in your days on the mountain. As the cost of living in town continues to rise, the average local will have to work more and play less to get the equation to balance out. Sometimes it involves making compromises in one's life. I'm lucky enough to be able to juggle my hours, so I can make it work for the most part. Many locals will hang on to a job over the years which pays well (but typically has a ceiling on earning potential) and offers the time or flexibility to get in their days skiing ... but they're still JUST getting by. So, $200 increase on a season pass is a big squeeze! If they raised it $200 this year, what will it be next year? Or, in five years?
While Telski employees receive a season pass as part of a compensation package it may see they're unaffected, but in reality may still adversely affect some individuals. At $1,200 passes will be harder to come by with employers other than Telski, so you may think twice about quiting your job as a lift op or at the ticket window. I'm sure plenty of Telski employees are happy with their positions, but many may now feel more "stuck" than ever. Combined with the surprise removal of a guaranteed retro bonus last season, it seems morale may be a bit on the downside.
I understand the need for a business to adjust it's fees periodically, but typically this is done in the context of the broader free market. While there may be both national and regional competitive fores operating, it may be said that the Telluride Ski and Golf Company is operating as a monopoly on the local level. This position directly affects local's ability to access public lands in a fair and reasonably manner as well as live within a local economy which isn't unduly influenced to its detriment.
For the most part, I'm a true believer in the purity of the free market ; however, when it comes to the utilization of limited public lands as a substantial foundation for a private interest to seek financial gain, I think there needs to be a certain level of regulatory controls and oversight. I'm all for a business making healthy profit, but I do believe fair and reasonable access to public lands ought to trump the former.
Aside from my underlying philosophical notions, the price increase is something which most people in town are just flat bummed out about. The cost was high enough at $1,000 last year ... let alone $1,200 this season if you're able to swing the early bird rate. Otherwise, you're shelling out $1,850 regular rate for adults. By comparison, a season pass at Arapahoe Basin is $309 for 2008/2009. If you live in Summit County Colorado, you can ski or snowboard all season (which lasted until June this year) for about 1/4 the price of Telluride. Granted the lift lines and parking can get insane at A-Basin, but you can still get in your days skiing or snowboarding by being selective of times and such.
Given how difficult it is to stay afloat financially in Telluride, it's hard to break away from work to get in your days on the mountain. As the cost of living in town continues to rise, the average local will have to work more and play less to get the equation to balance out. Sometimes it involves making compromises in one's life. I'm lucky enough to be able to juggle my hours, so I can make it work for the most part. Many locals will hang on to a job over the years which pays well (but typically has a ceiling on earning potential) and offers the time or flexibility to get in their days skiing ... but they're still JUST getting by. So, $200 increase on a season pass is a big squeeze! If they raised it $200 this year, what will it be next year? Or, in five years?
While Telski employees receive a season pass as part of a compensation package it may see they're unaffected, but in reality may still adversely affect some individuals. At $1,200 passes will be harder to come by with employers other than Telski, so you may think twice about quiting your job as a lift op or at the ticket window. I'm sure plenty of Telski employees are happy with their positions, but many may now feel more "stuck" than ever. Combined with the surprise removal of a guaranteed retro bonus last season, it seems morale may be a bit on the downside.
I understand the need for a business to adjust it's fees periodically, but typically this is done in the context of the broader free market. While there may be both national and regional competitive fores operating, it may be said that the Telluride Ski and Golf Company is operating as a monopoly on the local level. This position directly affects local's ability to access public lands in a fair and reasonably manner as well as live within a local economy which isn't unduly influenced to its detriment.
Wednesday, June 11, 2008
Telluride Season Pass Rate Increase & Local Economy
While the Telluride Ski Resort season pass rate increase affects those of us who independently purchase a pass, I believe it also has a signicifcant impact on the local and regional economy.
If you're gonna be a ski bum, you've got to have a pass. Receiving a season pass from an employer as part of a compensation package is a coveted benefit to those individuals who are seeking to "live the life" at a major ski resort. So, unless you get a pass from an employer, you're forced to buy it outright ($1,198 early bird or a whopping $1,850 after Nov. 1, 2008).
Last I checked (I could be wrong here), the merchant program offered by Telski was something to the effect of $700 (which would probably be $850 this year) for a merchant pass; however, it requires a substantial contribution to the local "airline guarantee program". I believe this contribution is somethere in the neighborhood of $500-$1000. There are price breaks for larger companies with more employees. I'll eventually obtain the exact figures and terms for a more detailed analysis. Nonetheless, it's safe to say most average sized merchants in town are forced to ante up at almost the full pass rate in order to obtain passess to hand out to their employees as a benefit.
On the other hand, Telski can virtually print out an unlimited number of passes to distribute to their employees as part of a compensation package. This fundamental dynamic provides Telski a significant competitive advantage over other merchants in so far as keeping overall expenses down. It follows that an increase in season pass rates translates into a greater advantage in so far as many local businesses being squeezed that much further to offer up a competitive compensation package. In an overall inflationary/recessionary environment, this advantage that Telski enjoys becomes even more pronounced.
So, what are local area businesses to do in order to hire and retain qualified employees? It seems their faced with one of two choices:
1.) Discontinue their involvment in the merchant pass program and let their employees purchase a pass independently. This option is somewhat risky in so far as possibly losing out on those employees who are using a pass as a "deal breaker" in terms of whether or not the job is worth taking. The employer can mitigate this by raising wages, but if the employee is smart they'll do the number crunch as applied over time. Assuming an employee will net 80% of gross earnings, one would have to gross $2,220 in wages to pocket that $1,850 for the pass. Moreover, the employer may also be shelling out an additional 10-20% in taxes on the backend. So, while it's true that many employers are willing to implement creative and innovative ways for their employees to get their hands on a pass, the numbers don't readily add up in regard to increasing wages.
2.) The other option would be to simply ante up more cash for season passes in order to remain competitive in the local employment sector. What does this do? It decreases the bottom line for the employer and tightens the already shrinking margins. It may also increase the cost of goods and services to the end consumer; contributing to inflationary pressures. Given the already high cost of living in Telluride, where many locals work multiple jobs and barely get by, we'll start to see even greater cost of living hardships. Many locals may find it difficult to continue to live in Town and move away.
The trickle down effect of Telski's pass rate increase will probably be incremental, it nonetheless will have tremendous ripple effects over time. If wages don't keep up with the cost of living, we may see more and more workers communiting from towns further away such as Montrose & Cortez. We may see more vehicles on the already deteriorating roads which lead into and out of Telluride. However, with the cost of gas on the rise, local area businesses will have a difficult time providing wages which mitigate travel expense. Still, Telski can print up passess as if they had a license to print money in the basement of their headquarers ... so they may be more successful in luring regional workers who are interested in a pass.
Of course, all of the above scenarios assume the local economy will not implode, but I would argue there is a limit to how high Telski can raise the price of a season pass and not have virtually all of the dominoes knocked over. Crested Butte found itself in a quite a situation a few years back when something on the order of 18-21 businesses closed their doors over the course of a 12 month span. The underlying reasons may have been different, but the potential exists here in Telluride for a similar mass exodus of viable essential businesses.
It's interesting to note the National Forest Service will require impact studies (mostly environmental) with respect approving development activities within NFS boundaries; however, it seems Telski (as a current leasee and existing operator) is immune from current economic impact evaluations in terms of how their operational price points affect the local and regional economy. Should the NFS have oversight powers in perpetuity? This is somewhat of an ideological question, but I think it deserves consideration.
If you're gonna be a ski bum, you've got to have a pass. Receiving a season pass from an employer as part of a compensation package is a coveted benefit to those individuals who are seeking to "live the life" at a major ski resort. So, unless you get a pass from an employer, you're forced to buy it outright ($1,198 early bird or a whopping $1,850 after Nov. 1, 2008).
Last I checked (I could be wrong here), the merchant program offered by Telski was something to the effect of $700 (which would probably be $850 this year) for a merchant pass; however, it requires a substantial contribution to the local "airline guarantee program". I believe this contribution is somethere in the neighborhood of $500-$1000. There are price breaks for larger companies with more employees. I'll eventually obtain the exact figures and terms for a more detailed analysis. Nonetheless, it's safe to say most average sized merchants in town are forced to ante up at almost the full pass rate in order to obtain passess to hand out to their employees as a benefit.
On the other hand, Telski can virtually print out an unlimited number of passes to distribute to their employees as part of a compensation package. This fundamental dynamic provides Telski a significant competitive advantage over other merchants in so far as keeping overall expenses down. It follows that an increase in season pass rates translates into a greater advantage in so far as many local businesses being squeezed that much further to offer up a competitive compensation package. In an overall inflationary/recessionary environment, this advantage that Telski enjoys becomes even more pronounced.
So, what are local area businesses to do in order to hire and retain qualified employees? It seems their faced with one of two choices:
1.) Discontinue their involvment in the merchant pass program and let their employees purchase a pass independently. This option is somewhat risky in so far as possibly losing out on those employees who are using a pass as a "deal breaker" in terms of whether or not the job is worth taking. The employer can mitigate this by raising wages, but if the employee is smart they'll do the number crunch as applied over time. Assuming an employee will net 80% of gross earnings, one would have to gross $2,220 in wages to pocket that $1,850 for the pass. Moreover, the employer may also be shelling out an additional 10-20% in taxes on the backend. So, while it's true that many employers are willing to implement creative and innovative ways for their employees to get their hands on a pass, the numbers don't readily add up in regard to increasing wages.
2.) The other option would be to simply ante up more cash for season passes in order to remain competitive in the local employment sector. What does this do? It decreases the bottom line for the employer and tightens the already shrinking margins. It may also increase the cost of goods and services to the end consumer; contributing to inflationary pressures. Given the already high cost of living in Telluride, where many locals work multiple jobs and barely get by, we'll start to see even greater cost of living hardships. Many locals may find it difficult to continue to live in Town and move away.
The trickle down effect of Telski's pass rate increase will probably be incremental, it nonetheless will have tremendous ripple effects over time. If wages don't keep up with the cost of living, we may see more and more workers communiting from towns further away such as Montrose & Cortez. We may see more vehicles on the already deteriorating roads which lead into and out of Telluride. However, with the cost of gas on the rise, local area businesses will have a difficult time providing wages which mitigate travel expense. Still, Telski can print up passess as if they had a license to print money in the basement of their headquarers ... so they may be more successful in luring regional workers who are interested in a pass.
Of course, all of the above scenarios assume the local economy will not implode, but I would argue there is a limit to how high Telski can raise the price of a season pass and not have virtually all of the dominoes knocked over. Crested Butte found itself in a quite a situation a few years back when something on the order of 18-21 businesses closed their doors over the course of a 12 month span. The underlying reasons may have been different, but the potential exists here in Telluride for a similar mass exodus of viable essential businesses.
It's interesting to note the National Forest Service will require impact studies (mostly environmental) with respect approving development activities within NFS boundaries; however, it seems Telski (as a current leasee and existing operator) is immune from current economic impact evaluations in terms of how their operational price points affect the local and regional economy. Should the NFS have oversight powers in perpetuity? This is somewhat of an ideological question, but I think it deserves consideration.
Wednesday, June 4, 2008
More On Season Pass Rate Hike
Nobody likes to pay more for what they've been used to receiving ... especially a significant rate increase (20%).
Although the ski company quietly released their price increase on a Friday (akin to how it's done in politics) and is overshadowed by the news of the Colorado Supreme Courts decision to allow the Town of Telluride to complete the eminent domain taking of the Valley Floor, they will undoubtedly receive some flak when this news gets back on the radar of the locals & businesses who purchase season passes in advance.
The ski company will probably cite several reasons as to justify a rate increase. My guesses are as follows:
1.) There has not been a significant rate increase in a number of years.
2.) Expansion of hike-to terrain up to Palmyra Peak and further access up the Gold Hill ridgeline; necessitating more avalanche control and additional patrol resources.
3.) The ski are will expand it's available terrain via Revelation Bowl with a new lift dropping into Bear Creek.
4.) New snowmaking and grooming equipment.
Most, if not all of the above possible reasons for a price increase reflects a more aggressive marketing posture for either increased future returns on ski area operations or with respect to the potential sale of the ski area to a new buyer down the road. Yet locals are being compelled to subsidize infrastructure build out and more aggressive marketing WITHOUT BEING ASKED. I do not recall receiving a ballot or questionaire as to my preferences? Nor, do I recall sitting on the chair lift and hearing about any visitors receiving the same (one can only wonder what the price of the single day lift ticket is going to be for next season?).
Let's not take our eye off the ball here: the ski area is essentially a steward of public lands via a lease of the majority of land within the ski area boundaries from the National Forrest Service.
Of course there's an inherent financial risk to being party to such a contract and the ski company ought to be able to have a certain degree of autonomy in so far as steering a course which is most economically viable; however, how far can they go?
more later ....
Although the ski company quietly released their price increase on a Friday (akin to how it's done in politics) and is overshadowed by the news of the Colorado Supreme Courts decision to allow the Town of Telluride to complete the eminent domain taking of the Valley Floor, they will undoubtedly receive some flak when this news gets back on the radar of the locals & businesses who purchase season passes in advance.
The ski company will probably cite several reasons as to justify a rate increase. My guesses are as follows:
1.) There has not been a significant rate increase in a number of years.
2.) Expansion of hike-to terrain up to Palmyra Peak and further access up the Gold Hill ridgeline; necessitating more avalanche control and additional patrol resources.
3.) The ski are will expand it's available terrain via Revelation Bowl with a new lift dropping into Bear Creek.
4.) New snowmaking and grooming equipment.
Most, if not all of the above possible reasons for a price increase reflects a more aggressive marketing posture for either increased future returns on ski area operations or with respect to the potential sale of the ski area to a new buyer down the road. Yet locals are being compelled to subsidize infrastructure build out and more aggressive marketing WITHOUT BEING ASKED. I do not recall receiving a ballot or questionaire as to my preferences? Nor, do I recall sitting on the chair lift and hearing about any visitors receiving the same (one can only wonder what the price of the single day lift ticket is going to be for next season?).
Let's not take our eye off the ball here: the ski area is essentially a steward of public lands via a lease of the majority of land within the ski area boundaries from the National Forrest Service.
Of course there's an inherent financial risk to being party to such a contract and the ski company ought to be able to have a certain degree of autonomy in so far as steering a course which is most economically viable; however, how far can they go?
more later ....
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