Blue mountain resorts case study Essay

1076 Words Jan 18th, 2014 5 Pages
Blue Mountain resorts (Data collection)
1. Problem definition
Blue Mountain Resorts were first built in 1941, and it is the largest family-operated ski resort in Canada. The major problem in this case is that the CEO of the Blue Mountain Resorts has to decide whether to install facilitates or not for the night skiing in 1979-1980 winter skiing season. Maintaining comfortable capacity at ski resort is very important in this field of market. The capacity depends on the hill size, hill development, and lift facilities. Therefore, to provide the night skiing service, investing in hills and lifts are important factors. So, if the CEO decides to install the night skiing facilities, he needs to decide the price of the single-night lift ticket
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Among 2 intermediate levels, one advanced, and one beginner and intermediate level, one should be chosen. I suggest the intermediate level to be opened since the night ski uses would mostly intermediate-high level users rather than beginners, and advanced level at night would be somehow dangerous. The operating cost would be $1000 per night, adding seasonal allocation of $20,000 fixed cost, $7.75 liability insurance per 1000 skiers, and $5000 for promotional cost. Therefore, the cost of operating night skiing is, $1000*120days+$20,000+$5000+$7.75*30= $145,232.50 per year. $135,000+$145,232.50=$280,232.50. The frequency of night skiing in cross tabulation of pass holder status was mostly 1-10 times per year. They will come for two or more days. The profit calculation will be approximately 2days* 5 times* $5.50=$55.0 per people for a year. 30,000 people*30%*$55= $495,000 per year. This profit exceeds the cost, so the company should invest in facilitating the night skiing.
The next step is to decide the type of the season pass and the ticket price. It could offer the special night skiing season pass or combine it with the original day time season pass. For example, three types of the passes which are; day pass, night pass, or combined pass. On the night skiing survey, fair price showed to be $5 for midweek nights and $6 for weekend nights. Most people anticipated their skiing days a year to 1-5 or more than 20. Also, the

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