Killington Town Hall Sign

Killington Town Hall Sign

At a meeting last night in the Killington town offices, executives from Powdr Corp, Chris Nyberg, and SP Land LLC, Steve Selbo, met with the Killington Board of Selectmen to discuss their views on the operations of the Killington Resort. According to people directly involved in the meeting, the overall presentation indicated that the resort would be operated with more focus, aimed at improving overall profitability of ski operations.

A note widely circulated around town this morning from a meeting attendee, and quoted with permission below, commented that Powdr Corp plans discussed last evening included the following:

1. Powdr will make modest capital investments next year, in areas that will not be totally evident to most people. (Note from Bill.. In prior public statements, Powdr had stated that they will be spending much of their time and initial development dollars improving resort infrastructure to enhance the guest experience. But many of the improvements would, by their nature, be invisible to resort guests.)

2. Skier visits will probably drop, as a reaction to higher prices and fewer give aways. All programs involving free skiing, including programs involving local students will be reexamined.

3. Powdr's emphasis will be on higher margins from fewer skier visits, resulting in more profits(higher yield per skier).

4. Future capital investment will be funded from profits/cash flow. Funding will be at a maintenance level until profits make more possible.

5. Major lift improvements will wait for profits. Adjustments might occur in lifts where it makes sense to accomodate/enhance skier traffic and improvement of skier enjoyment.

6. Marketing will be done by a small group of highly skilled people. The effectiveness of marketing dollars will be closely monitored and scutinized to assure payback to the ski resort.

7. Internally managed and run programs will be favored over outsourced/local contracts.

8. Emphasis will be on winter, not summer guest traffic.

9. The interconnect is probably at least five years away, more likely 10 years , based on profitability/turnaround/ real estate sales.

10. Impact of lower skier traffic will not be the primary concern. More emphasis will be placed on higher margin busines with fewer guests. Fewer guests will not mean that less emphasis will be placed on real estate development. Real estate development may be focused on high end real estate/ high margin business.

11. Real estate development is a 25 year project. A lot needs to be done to get it started. Partners wil be considered in high risk investments.

12. Powdr and SP Land have minority investments in each others business..

From the perspective as a Killington business owner, it is too early to tell what this all means. On the one hand, I totally understand the need to drive the resort to profitability. That is the only way, long term, for a business to sustain itself. I also appreciate the need to immediately improve segments of the resort operations which may not be directly visible to resort guests, provided that the net effect is to improve the overall guest experience.

It is hard to react to the comments concerning skier visits and marketing, as both have been declining in recent years under previous resort management. In recent years, with the advent of a variety of very low cost seasons passes, ASC had changed the nature of the resort, resulting in an increase in day skier traffic and a decline in long term visitors. Those changes did not improve the resort. In my opinion, as an innkeeper, re-aiming the resort to providing a quality experience for people spending multiple days visiting the resort is a good thing, if that is the message Powdr is trying to give. Only time will tell...So it goes.

P.S. Don't forget your sunscreen.