Yield management for ski schools and resorts: is it really a thing? Why and how.

Is yield management applicable to snowsports operators selling lessons or lift pass tickets? Yes, it is.

What is yield management?

Yield management uses the strategy of offering the right product, at the right time, to the right customer, at the right price, each of which involves specific tactics to be effective. When implemented well, yield management narrows the gap between the amount of revenue your business could bring in and the amount of revenue it actually brings in. The result is ‘yield efficiency’. Yield management has been successfully applied to several industries and it has completely revolutionized the way people perceive goods or services.

Look at flight tickets: there is a long list of factors contributing to the price of a single ticket; several are related to the available inventory.  Yield efficiency regulates exactly this: it defines price fluctuations based on the (expected) demand of a good so better meet the demand and increase margins. Essentially, this is why when you buy a flight ticket, its price is higher when purchased towards the date of the flight itself.

Can yield management be applied to snowsports lessons?

Yield management can be applied to any product or service that is impermanent and has limited inventory. Ski or snowboard lessons are limited by the number of instructors available for the lesson – also if they are not taking a lesson at a given point in time, the lesson decays and it would never be available anymore in the future. So – good news! – YES, yield management can be applied to snowsports lessons too.

Why the snowsports lesson industry needs yield management:

  • Up to 85% higher margin on each lesson sold (Industry leaders experienced that the consumer price of a good can almost double based on when the product / good is purchased).
  • Better know your clientele (How much your clients are willing to spend for a lesson? Some buy in advance some hold off. As long as you know their requirements you d also be able to pick the right price point for your lesson).
  • Improve conversion (Inventory is limited and communicating this is important. By communicating a limited supply of product at a particular price, the consumer is encouraged to buy now).


Obviously more or less complex yield strategies can be applied to your business. Below 3 easy steps to approach and implement a basic yield model for your snowsports school or resort:

  • Question your clients (How much are they willing to spend for your lessons?).
  • Set up a tiered pricing (based on your availability for example: if someone books a lesson when all instructors are still available, price should be lower compared to when only few are available). At Skipodium we help schools and resorts around the world with pricing strategy and yield management. Check out our free software!
  • Stretch and play with the gap min price / max price (knowing the price extremes will help you redefine and improve your yield over time).





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