Wednesday, April 23, 2014

Snow sports Market Analysis, Size, Share, Growth, Trends and Forecast In UK April 2014: Global Business Survey

Market Survey On Snowsports Industry In UK April 2014: Global Emerging Opportunities, Trends, Size, Drivers, Strategies, Products And Competitive Landscape

Aside from growing the snowsports customer base as a whole, complimentary pre-season and post-season lessons in the UK could also aid brand loyalty by tying a customer in to a given brand’s ecosystem. Operators could take a more hands-on approach and have their own reps or instructors leading or contributing to lessons to customers in the UK, thereby creating a sense of uniformity and trust for both first-timers and experienced skiers.

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Table of Content

Introduction

Definition
Abbreviations

Executive Summary

The market
Snowsports market finally bottoms out and enjoys minor growth in 2012/13
Growth is expected to continue over the next five years…
Figure 1: Forecast volume of the UK snowsports market, 2007/08-2017/18
Figure 2: Forecast value of the UK snowsports market, 2007/08-2017/18
but a range of factors will limit the rate of recovery
Market factors
The Pound has performed well against key currencies
Poor snow conditions in Eastern Europe could harm reputation
French ski host ban could see demand shift to other destinations
Global warming poses a significant threat to low-elevation resorts
Sochi Winter Olympics expected to boost interest
Market share
Crystal cements pole position after merger with First Choice
Neilson acquisition should see the underperforming operator bounce back
Parent company TUI has increased its market share to 41%
Companies, brands and innovation
Crystal circumvents ski host ban by partnering with Evolution ski school
Club Med promises a 50% refund if half the pistes are closed
Ski resorts offer cash incentives to airlines and border crossings
Mountain Base offers to pay truancy fines
Intrawest Passport lift pass offers free skiing to under-12s
The consumer
A quarter have taken a snowsports holiday in the past
Figure 3: Snowsports holiday experience, January 2014
High demand for Switzerland contrasts with a low market share
Figure 4: Future snowsports destinations, January 2014
First-timers are key, but low repeat business is a challenge for the industry
Figure 5: Last snowsports holiday behaviour, January 2014
School and university trips are a key stepping stone for the industry
Impact of French ski host ban will be limited
Demand for warmth and relaxation provide a ceiling to future growth
Figure 6: Reasons for disinterest in snowsports holidays, January 2014
Natural landscape appeal could drive sales among older demographics
Figure 7: Attitudes towards snowsports holidays, January 2014
People recognise the need for insurance, but may be lacking sufficient cover
What we think

Issues and Insights

How can operators improve loyalty and encourage repeat business?
The facts
The implications
How can operators offset the impact of an ailing schools segment?
The facts
The implications

Trend Application

Trend: Nouveau Poor
Trend: Collective Intelligence
Mintel futures: Old Gold

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Market Drivers

Key points
The Pound has performed well against key currencies
Figure 8: Index of GBP performance against key snowsports destination currencies, January 2012-March 2014
Emerging Balkan ski resorts offer significant savings
Figure 9: Top five most expensive and five cheapest European ski resorts, 2013
North American resorts are far more expensive
Figure 10: Pricing survey of North American ski resorts, 2013
Poor snow conditions in Eastern Europe could harm reputation
French Ski host ban could see demand shift to other destinations
Global warming poses a significant threat to low-elevation resorts
Sochi Winter Olympics expected to boost interest

Who’s Innovating?

Key points
Crystal circumvents ski host ban by partnering with Evolution ski school
Club Med promises a 50% refund if half the pistes are closed
Ski resorts offer cash incentives to airlines and border crossings
Mountain Base offers to pay truancy fines
Intrawest Passport lift pass offers free skiing to under-12s

Market Size and Forecast

Key points
Snowsports market finally bottoms out and enjoys minor growth in 2012/13
Figure 11: Forecast volume and value of the UK snowsports market, 2007/08-2017/18
Growth is expected to continue over the next five years…
Figure 12: Forecast volume of the UK snowsports market, 2007/08-2017/18
but a range of factors will limit the rate of recovery
Figure 13: Forecast value of the UK snowsports market, 2007/08-2017/18
Forecast methodology

Segment Performance

Key points
Tour operators have maintained market share throughout the recession
Figure 14: Market share of snowsports market, by holiday type, 2007/08-2012/13
The schools market failed to enter recovery in 2012/13
France continues to dominate the market with a 35% share
Figure 15: Market share of snowsports market by destination, by number of holidaymakers, 2012/13
North American market could be boosted by no-frills, transatlantic airfares
Scandinavia offers significant opportunities for expansion
Eastern European and Balkan products will be a tough sell in 2014

Market Share

Key points
Crystal cements pole position after merger with First Choice
Figure 16: Market share of operator sales by brand, by number of holidaymakers, 2012/13
Neilson acquisition should see the underperforming operator bounce back
Parent company, TUI, has increased its market share to 41%

Companies and Products

TUI Travel
Crystal Ski
Thomson Ski
Hotelplan
Figure 17: Key financials for Hotelplan UK, 2011 and 2012
Inghams
Esprit
Ski Total
Neilson
Skiworld
Figure 18: Key financials for Skiworld Limited, 2012 and 2013
Ski Safari

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The Consumer – Snowsports Holiday Experience

Key points
A quarter have taken a snowsports holiday in the past
Figure 19: Snowsports holiday experience, January 2014
Snowsports remain an exclusive market with high barriers to entry

The Consumer – Future Snowsports Destinations

Key points
High demand for Switzerland contrasts with a low market share
Figure 20: Future snowsports destinations, January 2014
Downward pressure on airfares could boost the North American market
Interest in Eastern Europe is low, but cost savings could boost demand
Interest in domestic trips is high, particularly among seasoned skiers
Scandinavian market could enjoy boost from multi-activity demand

The Consumer – Last Snowsports Holiday Behaviour

Key points
First-timers are key, but low repeat business is a challenge for the industry
Figure 21: Last snowsports holiday behaviour, January 2014
School and university trips are a key stepping stone for the industry
Ski host ban will only have a muted impact among seasoned skiers
Young people are the most likely to have booked independently
Off-peak opportunities
Ski lessons key to boosting demand for packaged products

The Consumer – Reasons for Disinterest in Snowsports Holidays

Key points
Demand for warmth and relaxation limit growth potential
Figure 22: Reasons for disinterest in snowsports holidays, January 2014
Beginner packages not the only way to appeal to non-skiers/snowboarders
Grey gold sales hindered by fitness and age concerns
High costs are a barrier to entry
Schumacher accident could have fuelled concern over safety
Increase non-ski activities to boost perceptions of value for money

The Consumer – Attitudes towards Snowsports Holidays

Key points
Natural landscape appeal could drive sales among older demographics
Figure 23: Attitudes towards snowsports holidays, January 2014
Popularity of annual policies means may people lack sufficient cover
Off-slope activities provide an opportunity to differentiate
Significant demand for pre-season lessons in the UK
Demands for guaranteed snow will harm growth in emerging destinations


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