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The economics of skiing

Together, we go skiing once every few years now since the children have left the house.  It used to be a ritual during the winter break to go away skiing for a week in the Alps.  Usually, we would rent a chalet either in France or in Austria.  When we were young we would drive but as the children grew older the plane became much more convenient.

This year, it was a last-minute decision, and also an opportunity.  I mentioned to Peter (ex-colleague) that we were thinking of going skiing when he suggested that I contact a common friend, I will call him Jack,  about renting his place in Vail. Peter, Jack and I were all colleagues at my ex-firm as juniors all these years ago.

What happened next was unexpected, Jack was already planning on going skiing with his wife, that very week so he invited us to join.  He then said that they were flying out of a small airport called San Rafael on a private aircraft.  We would take off Tuesday morning around 11 am, and be there for a late lunch.  When I told him we were staying in Mill Valley, he said, It's 15 minutes away.  

Skiing is a strange industry because it is one of the few sports that is dependent on the weather.  Vail is one of America's favourite ski resorts offering great restaurants and accommodations and a variety of skiing conditions.  Looking at the European ski scene, there is certain to be trouble ahead.  This is the second year in a row that the snow didn't show up.  We are already in mid-January and most resorts are still operating with less than 1 meter of total snow accumulation (in some places it's much less).  

At the Vail village, the total so far this year is 1.5 meters of snow, and up on the mountain, it's nearly 4 meters.  Nothing compared to last year's record snow accumulation.  Still, more than enough for us intermediate skiers.  It is hard for resorts to survive one year with little snow, but in two or three it becomes impossible.

We looked everywhere in Europe, from Switzerland to Italy, and the snow conditions were terrible.  We even considered Zermatt, where I had skied years ago, but both because of the lack of snow, and the eye-watering prices, it just didn't cut it.  Europe's 2024 ski season looks to be another disappointment. 

I would hate to be an investor in a European ski resort right now!

Note:  BTW, we know Jack's apartment rental rate, and we are paying it to them.  I told Jack he could do what he wanted with the money, but it's non-negotiable.  They are already giving us a lift to Vail.  I had not seen Jack for nearly a decade and had never met his wife.  It really is the least we could do.  

Note2:  For those who are curious we are flying in a 1973 Learjet 25B.  It's still nearly a two-hour flight.  The aircraft is nearly as old as I am, and Jack will be the Pilot...


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