More snow hit the alps this week, but many ski operators’ minds will be on next winter. With contracting and brochure production in full swing operators are faced with tough decisions. If they set their currency for next winter now, it will be hard to avoid price increases for 2009-10 of less than 30%. If they gamble on the strength of sterling, they are gambling on the future of their business. How many will be able to sustain 30% price hikes in the current climate?
It truly is a lose-lose situation. If they set the currency now and sterling increases in value, clients will be tempted to go direct to hotels next winter in order to find better value. If they set now and sterling declines further, clients are still faced with more expensive holidays. Unfortunately for ski operators, almost all sales are against the euro or the dollar, both of which are now strong against sterling, so there is little chance of switch selling to stronger areas.
It’s a chilling scenario and it many ski operators will have to make tough choices in order to survive another 18 months, but at the moment they will be striving to squeeze every possible cent out of their suppliers for next winter.
