Snowsports - Focus & Challenges

Yesterday I had the pleasure of speaking on behalf of The Firebird Partnership on a Mountain Trade Network panel discussion looking into issues surrounding the start of the 2020/21 ski season.

Between us Charles Owen, Ella Robinson and I looked at how snowsports organisations might want to approach the challenges posed by Brexit, dealing with coronavirus and wider idustry issues.

Below is a summary of the key points I made in response to the questions posed by host James Gambrill. You can sign up to Mountain Trade Network and watch all recordings from the day here: mountaintradenetwork.com

What is the single most important message any snowsports organisation should be communicating right now?

• That they are listening to their customers and putting them first. 
• It is a time to build (or for some rebuild) understanding and trust. 
• Communications need to be outward looking, not inward looking. Customers have their own problems, and we shouldn’t expect many to care about ours! 
• Above all avoid gloom, stay calm and inspire confidence for the future. Not always easy at the moment, but worth the effort. 

How can a snowsports business prepare best for continued uncertainty?

• There has to be solid business modelling. You need to have different scenarios mapped out and know what they mean for your cash flow and future prospects.
• One of those scenarios might be mothballing and this definitely shouldn’t be viewed as your worst case scenario. For some it may even be the best option. 
• Communication flows also need to be kept up, with both customers and teams. 
• Know how wants and needs of your customers have shifted and think about how you can accommodate them now and in the future. 
• Cheesy though it sounds, you can’t hope for the best … unless you are also prepared for the worst.

Should snowsports organisations continue to spend on marketing even if some target markets are unable to travel?

• Yes, but very carefully and with a clear eye on current realities and what they want to get from any spend. 
• My focus would be on existing and previous customers. This is your most qualified audience and the most likley group to buy from you in the short to medium term.
• If you have the budget do spend some money on the 2021/22 dreamers / planners but only if you can capture who they are and have a plan on how to follow up and keep them engaged.  

How could snowsports organisations diversify to better manage the challenges ahead?

• I've thought about this a lot recently and don’t have a clear picture of how things will evolve. My gut feel is that there will be fewer organisations solely focused on snowsports. 
• Firms need to think about how they can use their skills to service different markets and different activities. Think along the lines of “What do we do really well?” and “What do our customers love?” and then, with a blank piece of paper, start figuring out how to marry up the two. 
• I think organisations should also think about how they can partner with other businesses that serve similar client bases, perhaps even going so far as to look at mergers or acquisitions. I believe that there is going to be a lot of consolidation in travel over the coming 18 months to three years. 

Are there operational options available to the industry that you feel have not yet been explored?

• I'm fairly confident that with the focus and perseverance I'm seeing, most options will have been explored by someone. How much of that is being shared across the sector I don’t know. Key is that blank piece of paper thinking and applying as much imagination as possible. 
• What is vital is to make sure that there is a genuine income stream behind any options being investigated. Nothing can be done purely for the sake of keeping going; it has to put money in the bank. 

North American resorts published their 2020/21 winter operating plans several months ago. Was that the right move?

• I don't know the US market well and I haven't studied any of the specific plans. However to me it makes sense to put information out as early as possible, even if you then need to modify it. 
• The challenge then is ensuring clear communications so that customers and staff know how things have changed. 
• I think one of the problems in Europe has been a lot of waiting for clarity before creating a plan, when there's no real potential for definitive information to materialise. 

To what extent are governments helping the snowsports industry, what more could they do and do they understand travel and snowsports? 

The UK government does not understand outbound tourism and barely understands inbound. It is unhelpful to have such a huge sector tucked away in DCMS with no strong voice in either the Cabinet or Whitehall. It is worth remembering that outbound tourism is going to be seen as an import in economic terms. 

In terms of support there has been both a lot and not a lot. For UK based businesses furlough and loans have prevented many from folding. There is nothing sector specific that recognises some of the unique challenges faced in travel though. Couple this with pressure for a move towards trust accounts etc and there is a real need for a seat at the policy table. 

Two questions I wasn’t asked but had thought about prior to yesterday were (with my responses) as below: 

What does a good result for a snowsports business look like for the 2020/21 winter?

• Survival with you and your team’s mental and physical health intact. 
• No or minimal deterioration in cash position.
• A customer base and team that remain engaged with the organisation.
• A clear strategy for 2021/22 and beyond that takes into account shifts in the market.

How do the challenges the snowsports industry face now compare to previous challenges?

• It’s beyond comparison, there is the double whammy of COVID and Brexit for many firms.
• One shouldn’t underestimate the knock on role now being played by third party stakeholders such as: Regulators, Merchant Services Companies, Insurers and Banks.