SkiStar operates the five largest ski resorts in the Nordic region and one destination in the Alps.
Strategic Product Areas
Alpine Skiing/Ski Lift/SkiPass
Alpine skiing is the Group’s core business. The majority of SkiStar’s profits are generated by SkiPass sales. The marginal revenue for each additional SkiPass that is sold is high. SkiPass sales during the 2019/20 financial year totalled SEK 1,231 million (1,393). The average price change was 3.1 percent.
The Group’s market share of SkiPass sales during the financial year in Sweden was 53 percent (50) and in Norway it was 29 percent (30). The market share in Scandinavia was 43 percent (41). The number of skier days in the Group amounted to 5,148,000 (5,800,000), a decline of 11.3 percent compared with the previous year. This decline is an effect of the previous destination closures in connection with the coronavirus outbreak.
To ensure the availability of accommodation in its operations, SkiStar needs control over the leasing of a large volume of beds at all its destinations. In this manner, the occupancy rate can be optimised, and possible weak sales can be adjusted at an early stage via proactive marketing efCont. The occupancy rate in cabins and apartments owned and mediated by the Group during the 2019/20 season (weeks 51–16) amounted to 68 percent (78). The number of mediated beds rose during the year. The decline in the occupancy rate is an effect of the previous destination closures in connection with the coronavirus outbreak. Income from accommodation amounted to SEK 260 million (303).
The equipment from SkiStar’s ski rental shops is prepared, waxed and correctly adjusted. To ensure that enough ski equipment is available for rental and that the equipment is of the equired quality, ski rental has been identified as a strategically important area for SkiStar. During the financial year, SkiStar operated a total of 29 ski rental outlets: nine in Sälen, nine in Åre, six in Vemdalen, two in Hemsedal and three in Trysil. Sales totalled SEK 163 million (188). This decline is an effect of the previous destination closures in connection with the coronavirus outbreak.
Ski school operations are strategically important for SkiStar, as a life-long interest in skiing is established and long-term contacts are forged between the destination, the skiing instructors and the guests. Children and youngsters who learn to ski early in life often develop a lasting interest in the sport, which they, in turn, pass on to their children. SkiStar has a unique ski school brand, Valle’s Ski School, which is aimed at the 3–9 age group. Net sales for the ski schools amounted to SEK 50 million (57) during the financial year. The number of learners at SkiStar’s wholly owned ski schools totalled 69,293. This figure excludes St. Johann and Trysil’s ski schools, in which SkiStar only has a participating interest. This decline is an effect of the previous destination closures in connection with the coronavirus outbreak.
Other Product Areas
SkiStarshop and skistarshop.com
SkiStar sells alpine sports goods in stores and online. The company operates its own SkiStar shops in Åre and Hemsedal, and there are two stores in Sälen and Vemdalen. All the Group’s ski rental outlets also sell sporting goods related to alpine skiing. Skistarshop.com is an online store stocking the market’s strongest alpine sports brands. The e-store is fully integrated into the flow of bookings of other products and services on skistar.com, which means that customers can buy a ski jacket while topping up their SkiPass. Customers can then choose to have the goods delivered to their home or pick them up from any of our SkiStarShop Concept Stores. In the 2019/20 financial year, the Group’s sporting goods operations generated sales of SEK 179 million (171). E-commerce continued to grow during the year.
The property services product area is made up of building superintendents, carpenters, electricians, janitors and other service personnel. Revenues within property services comprise rental income for the business premises and remuneration for cabin service and cleaning. During the financial year, revenues totalled SEK 102 million (109). This decline is an effect of the previous destination closures in connection with the coronavirus outbreak.
Other revenue includes income from events, advertising sales, kiosks, selling Ski*Direct cards (the plastic card for the electronic SkiPass) and received grants. Other income during the financial year amounted to SEK 199 million (226).
SkiStar works actively on business development to generate further growth and profitability. This involves developing new revenue streams based on the brand, existing assets and the customer database. Efforts relating to business development also involve meeting customers’ future expectations in terms of products and concept. This work follows a structured SkiStar model based on (1) Idea, Feasibility Study & Analysis, (2) Project Phase, (3) Test Phase and (4) Implementation and Launch. Business development is conducted in projects and is organised under Commercial. Today, business development is one of the company’s six main strategies.