Tourism Whistler says the resort can’t afford to rest on its laurels
Now is the time to take a careful look at pricing strategies and to be extra sensitive to the needs of our guests, because "newness" and first-time trials will not sustain Whistler’s growth.
This is one of the messages to come out of the Tourism Whistler business plan for 2001 which was presented at the organization’s third annual open house, held Thursday, Feb. 15.
"There is growing concern regarding the overall sustainability of Whistler’s success," reads the business plan summary. "Whistler is reaching a point in its evolution where it must become more sensitive to the guest experience."
Simply put, the resort can no longer rest on its laurels.
A couple of factors led the tourism organization to this conclusion: There is growing and fierce competition coming from Colorado, which wants to re-capture its share of the skier pie. There is increased competition from Utah resorts, which now have the added allure of being 2002 Winter Olympic venues. And, in addition to the Games cachet, Utah resorts are garnering increasing consumer interest through improved infrastructure and competitive pricing strategies.
According to the Tourism Whistler report, this heightened competition presents even more of a challenge when combined with a local room inventory that has grown exponentially over the last seven years – one that seems to be outstripping the annual increases in the number of guests leading to a flat, or declining occupancy levels.
For example, there were 3,059 rooms available in 1995 compared to 5,355 in 2000 and a projected 5,460 for 2001.
On top of that, Whistler is losing its price advantage.
To mitigate the financial effects of decreased occupancy levels, room rates have climbed and Tourism Whistler says care must now be taken to offset any market backlash arising from these increases, particularly in the shoulder seasons of May through June and October through November.
A trend in late bookings is also appearing in most markets.
This all comes against a backdrop of global economic uncertainty and the associated exchange rate fluctuations have caused a softening of several of Whistler’s traditional markets. There is concern over a weakening U.S. economy and the U.K. economy is flattening after years of buoyant growth. Canada’s exchange rate advantage in both the German and Australian markets has also softened. This, "combined with strong average rate increases has, in some cases, compromised Whistler’s advantage relative to U.S. resorts."
Tourism Whistler itself is also faced with growing expectations from members and limited funding. According to the report, member fees will stabilize in the next two to three years as the construction of new accommodation grinds to a halt. "Consequently, alternative sources of funding must be secured to permit Tourism Whistler to make the needed investments to generate growth for the resort. "Historically, there has been a clear and immediate payback from investment in marketing and other promotion in targeted markets. If this funding is not accessed, Tourism Whistler’s ability to generate incremental growth will be limited."
To offset some of these challenges Tourism Whistler has come up with a set of strategies. Among them is recognition of a "crucial" need to maintain a balanced portfolio of markets to manage risk and weather economic fluctuations.
To combat potential negative spin-offs from inflated prices, the organization has established a task force of directors who will be convening a forum for all members this years to address the issue. Tourism Whistler will provide research and analysis to members in a way that helps them make educated yield decisions for individual businesses. As the report states: "Double digit advances in average room rates have not necessarily been accompanied by a corresponding increase in value to the guest. The value equation must be considered before any potential downturn in business arises."
For 2001 and beyond, Tourism Whistler will work on fostering marketing and funding partnerships. This means regular meetings with the large accommodation properties, Whistler-Blackcomb and the municipality to identify "leverage" opportunities.
In addition to courting meeting planners, incentive buyers and conference organizers, Tourism Whistler will also cosy up to the airlines in particular.
Traditional winter markets will be nurtured, softening markets will be coaxed back and continued, selective investment in high-potential, emerging markets – such as the Netherlands and Mexico – will be identified and steps taken toward building relationships.
Tourism Whistler will also be looking for funding agreements with the RMOW and other partners for the estimated $7.9 million conference centre renovations.
According to the report, the conference, meetings and incentive business represents Whistler’s single greatest opportunity to improve shoulder season results. A consultant’s study shows the improved conference facility could generate $49 million annually in delegate spending – an increase of $30 million per year.
Investment in Tourism Whistler’s other revenue-producing asset, the golf course, is also expected to start paying off. The Whistler Golf Course renovations are complete and the facility is expected to draw a high-end destination golfer in peak season and local or Lower Mainland golfers primarily in the shoulder seasons.
Significant capital investment is also being made in technology for both the organization’s call centre and its electronic equivalent – the Internet.
The organization will also help to lobby the provincial government highlighting Whistler’s contribution to the B.C. economy and the need to keep this engine fuelled.
In addition to being sensitive to the guest experience, the resort needs to diversify its offerings. "Collectively as a resort we must expand our product offering to include more non-ski activities, family amenities and teen programs. Further, each existing and new product offering must be delivered with a level of service unsurpassed in the tourism industry," states the report.
"The grandeur of Whistler’s scenery and number one ranks are not sufficient to secure the loyalty of the return visitor."
One additional strategy was adopted by the board of directors at its annual retreat – one that represents a somewhat new direction for the organization.
"At its July meeting, the board of directors considered a ninth strategic priority for Tourism Whistler and decided that it was appropriate for the organization to play a more active role representing Whistler’s interests on a variety of issues such as liquor licensing, provincial funding and the value of Whistler to the provincial economy."
A modest growth rate of three to four per cent is the target for this year, compared to the six per cent goal for 2000.
This goal, states the report, is aggressive yet realistic in face of the challenges.
