Staffing at Ski Resorts: '21/'22

[marzNC]

@marzNC . is it staffing or housing? I only know my area. No shortage of potential employees, but a permanent and deal breaking housing shortage causing the staffing shortage.

The recruiting efforts I've noticed are for staff of all types. Meaning positions that require very little experience and only a high school diploma to positions that can only be filled by someone with experience in the ski industry, such as a lift mechanic. Whether or not housing is an issue depends on the region and location.

For instance, can see position descriptions for Alta and Snowbird on their websites. While some Alta positions include housing in the town of Alta, and have for years, presumably it's not that hard to find housing in SLC. I know employees are encouraged to ride the UTA bus and/or carpool.

Massanutten in northern VA has been recruiting on their FB Page for a while, but the last couple years the number of posts related to job openings has increased. Since it's a 4-season resort with a waterpark and an Adventure Park (high ropes, rope course for kids, etc.), they are always looking for seasonal staff.

What's different is that I've seen recruiting blurbs in emails from more than one destination resort this fall.

The fact that news articles started coming out a few months ago about pay raises and other benefits for staff at ski resorts is clearly a function of how the pandemic has shifted the employee situation in the past 18 months. I don't think the 2021-22 season is the "new normal" for the ski industry yet, especially for staffing. Decisions about whether or not vaccination would be required, closed international borders during the normal recruiting months for J-1 employees, and housing issues are a few of the unique factors caused by the on-going pandemic.

 

[RachelV]

it’s also smart business potentially for landlords. If you have 10 properties that you rent to travelers near a ski area, and you provide staff housing at 3… that means that you are supporting the means of income for the other 7…. No housing —> no staff —> no resort —> no/lower rental income?

We’re all connected…and the more we think about ourselves as part of a closed system, rather than some sort of mythical, infinite open system, the better we’ll be.

I agree conceptually with everything you wrote, but I would be pretty surprised if many landlords take advantage of this. I'm not sure of the economics of the area in question, but I'd be pretty shocked if a free season pass comes anywhere close to making up the difference between short and long term rental income. As much as I'd love it if more people made decisions with the welfare of others in mind, I just don't see that happening when you're asking people to give up (tens of?) thousands of dollars in exchange for a season pass worth maybe a thousand bucks.

If the staff issues this season actually do make a difference in guest experience and visitation levels then maaaaaaybe something like this can work in the future, but... I'm skeptical.

Related article in the Sun recently, that mentions some of what ski areas are doing re: housing. A-Basin is actually leasing housing and renting it at discounted rates to its employees, which, sadly seems like where we're at if you actually want enough housing for the staff you need.

Colorado ski resorts are in an uphill battle for workers amid the historic labor shortage

Colorado ski resorts are relying on J-1 workers, locals and retooled jobs at ski areas during labor, housing crisis

coloradosun.com

 

[marzNC]

Related article in the Sun recently, that mentions some of what ski areas are doing re: housing. A-Basin is actually leasing housing and renting it at discounted rates to its employees, which, sadly seems like where we're at if you actually want enough housing for the staff you need.

That reminds me of the issues with staff housing that North Country School, in Lake Placid, NY has had for years. NCS is primarily a boarding school for G4-9, less than 70 students. (I and my daughter attended NCS.). Like all ski towns that are also 4-season destinations, housing around LP is expensive. There are small faculty apartments on campus, including those for house parents responsible for boarders. But that's not enough. In recent decades, the school has actively worked to provide more staff housing, including renting nearby houses at times.

 

[snoWYmonkey]

Our county provides housing stipends for full blown experienced physicians and has for a long time as relocating to Jackson is so expensive. Good luck with lifties, etc...

The resort has quite a few rooms and apartments it owns, but far from enough.

 

[Iwannaski]

@RachelV … I hear you, but if they don’t ensure that the resorts are staffed, they may not have rental properties near resorts that are desirable destinations any more.

So, sure, they don’t have to give up the income on a fraction of properties. Real estate is a gamble, after all…

 

[Christy]

Stevens Pass had a "Tenants 4 Turns" program. I'm not sure if that has continued under Vail, and I can't know how successful it was. The idea was that landlords got a $100 season pass or a bunch of tickets in exchange for renting to SP employees. I too am skeptical this would do much, particularly in this era of short term rentals. A season pass costs less than what a landlord would earn renting their cabin for one weekend.

 

[snoWYmonkey]

The resort could shut down and our national parks and favorable tax policies would still sustain real estate. Basically, we're a bit screwed housing wise. Skiing is not the main tourist draw.

 

[marzNC]

The resort could shut down and our national parks and favorable tax policies would still sustain real estate. Basically, we're a bit screwed housing wise. Skiing is not the main tourist draw.

Yep, when it come to real estate . . . location, location, location.

I remember that Jackson schools had problems when the Teton Pass is closed because of snow because so many teachers can't afford to live in Jackson so they are over in Idaho.

Lake Placid is similar being in the middle of the NY Adirondack Park. While there are people who make the drive to ski at Whiteface, there is far more demand for lodging during the summer and fall colors. The pandemic means more people are staying in their vacation home since they can WFH. Might not impact potential seasonal staff directly, but that means tourists are being pushed to lodging that might otherwise be available for someone interested in working at Whiteface this season.

 

[Iwannaski]

The broader issue of sustainable and affordable housing is a huge one across communities across the country. Why will you take a job that can’t let you live near where you work if your job requires physical presence? Only if you LOVE your job.

Larger/corporate employers will have to start considering policies and practices to support long term prospects sooner rather than later. Many of the larger employers in MKE are already doing this, because our upper Midwest location required some recruiting. But there are lots of other employers and industries that have been complacent and are going to get BURNED.

 

[Skivt2]

In Vermont it sure feels like a huge number of places got bought recently with the idea that they will be short term rentals all of the time of some of the time.

Some people may hate me for saying this. I have a degree in Economics and think about supply and demand a lot. I don’t believe skier visits are increasing substantially. And high energy costs often decreases skier visits because people don’t want to drive as much when gas is 4 per gallon but also because they have a lot less disposable income.

I can’t help but think we would have seen competition for renters if the demand for short term housing is fixed and the supply has increased substantially even without the added energy costs factoring in.

But the added cost of energy could actually decrease the demand for short term housing.

I am sorry but I am rooting for the investors in short term housing to get burned and a big way. I hope they lose their shirts.

Now that may not happen in the Rockies because when people can ski less and covid goes away they may have a higher demand to travel west to ski. But in a place where weekend trips via a car is the main way customers visit ski areas, my hope for an “amusement” in the viability of short term real estate as an investment may come true. Fingers crossed. Lol

 

[elemmac]

But the added cost of energy could actually decrease the demand for short term housing.

::devil's advocate speaking here::

An increase in energy cost could increase the demand for short term housing. Someone that travels 1+hrs to/from the mountain often does day trips. Do those people now decide that renting for a weekend is actually cheaper than the commute for two days of skiing?

 

[Iwannaski]

Related but side note… has anyone been following the Zillow speculation story?

 

[Christy]

In Vermont it sure feels like a huge number of places got bought recently with the idea that they will be short term rentals all of the time of some of the time.

Some people may hate me for saying this. I have a degree in Economics and think about supply and demand a lot. I don’t believe skier visits are increasing substantially. And high energy costs often decreases skier visits because people don’t want to drive as much when gas is 4 per gallon but also because they have a lot less disposable income.

I can’t help but think we would have seen competition for renters if the demand for short term housing is fixed and the supply has increased substantially even without the added energy costs factoring in.

But the added cost of energy could actually decrease the demand for short term housing.

I am sorry but I am rooting for the investors in short term housing to get burned and a big way. I hope they lose their shirts.

Now that may not happen in the Rockies because when people can ski less and covid goes away they may have a higher demand to travel west to ski. But in a place where weekend trips via a car is the main way customers visit ski areas, my hope for an “amusement” in the viability of short term real estate as an investment may come true. Fingers crossed. Lol

I like your spirit, but I don't think this tourism boom is going anywhere. I doubt increased gas costs deter many skiers, and I don't think we actually are seeing a decreasing in ski resort attendance. If there has been a decrease in skiers overall I think it may be because so many mom and pop places have closed, but the remaining resorts, where you find so many short term rentals, are busier than ever. And skiers only make up a part of any area's overall tourists. Even ski areas themselves are increasingly year round "resorts" or recreation areas. So I think the demand for STRs is there year round.

 

[liquidfeet]

Related but side note… has anyone been following the Zillow speculation story?

I'm curious.
Just looked. There's a ton of stuff online about this.

 

[Christy]

Related but side note… has anyone been following the Zillow speculation story?

Yes. I'm glad to see it's not going well--with their goal of buying 5000 houses per month, how is a regular person ever supposed to get a home? But it also sounds like, as with so many tech companies, that making money now it's that important, and they will soldier on.

 

[NYSnowflake]

Interesting. Killington had a sizable staff of instructors that are temporary and used to commit to teach for 5 days in exchange for some discounts and a lift ticket to use or give a friend for every day they teach plus the couple of training days. So you would teach MLK and 3 days Xmas week or a British holiday week and you were good. You could teach more than 5 if you wanted and keep getting tickets. Yo7 got paid lik3 $12/hr for the lesson time only. But it was kind of cool. My husband did it a couple years but skipped last year because of the virus mostly but he is in nursing school too. This year they made the minimum commitment 10 days and insisted that everyon3 teach a british holiday week. That made it impossible for my husband because he can’t miss a week of school. One of my best friends also was doing that. She teaches high school calculus so she had to quit being a temp for Killington this year too. Seems they shot themselves in the floot. Most of the temps are adults with housing. im sure they just lost many of the temps because they made it impossible for many.

Mr. Snowflake spoke with someone at Killington about being an instructor recently and they told him he had to work a minimum of 24 days this season to teach at Killington.

 

[ski diva]

Mr. Snowflake spoke with someone at Killington about being an instructor recently and they told him he had to work a minimum of 24 days this season to teach at Killington.

Yes, that's the case at Killington, and at a lot of other resorts, as well. But Killington takes on additional instructors during British vacation week (I thought about doing it one year). They just don't offer the same benefits that they do for regular instructors.

 

[BackCountryGirl]

In quite a few coastal Maine communities where housing costs have gone nuts, there are ordinances limiting short-term rentals, regulating who can offer properties, and requiring registration and licensure. I haven't heard of too many successful efforts like that in ski towns, but there was an effort to restrict short-term rentals in Bethel that failed. Many of the realtors also do short-term leases and they banded together to fight the effort.

Maine’s coastal communities seek short-term rental regulations ahead of tourist season

Proponents of rental regulations argue short-term rentals can take business away from hotels and motels and can drive up housing costs.

bangordailynews.com

 

[Skivt2]

They still have a temp program. You don’t get a pass. Now they expect a minimum of 10 days and 5 of them need to be a Brit week. The perks are less good as well but I won’t air and dirty laundry about that here. To be a part time instructor and get a pass you need 24 days.

 

[Skivt2]

I see several comments about demand not going away for STR’s. Even some speculation that staying overnight would increase with higher fuel costs.

But what about supply? In the past we have seen lots of places sit empty and people complain that they could not cover their expenses with STR’s.

I think part of that was an issue of too much supply of STR’s chasing too few renters.

In the short term demand for everything seems excessive and STR’s are no exception. But will that last with inflation taking such a big chunk of disposable income and the cost of STR ownership increasing significantly all the while the supply of STR’s available for rent has increased exponentially.

What happens if STR investors start to have trouble getting their occupancy high enough to cover their expenses?

In simple terms if there are 15 STRs available and 15 renters per week great. But if suddenly there are 30 STR’s and their are still 15 renters? Then what? 15 STR’s are empty.

So maybe the STR only needs to be rented 100 days to cover cost so being empty 265 days is the break even point. Great. Now let’s say it suddenly takes 180 days to cover costs. But the occupancy is below that because of completion from all the new STR’s.

I have heard over and over again skier visits are flat year over year on average. Why would that change over the next 10 years. So if supply of places to rent as STR’s goes up and not enough increase occurs in rentals then what?

thos is why we have seen boom and bust cycles before and why we are likely to see one again. Real estate in VT has more than tripled. The place we rented quadrupled in two years. Is that going make sense when the chips fall?