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Colorado resorts expect next ski season to be pretty normal, but some coronavirus changes may stick around
Vail Resorts chief Rob Katz on Friday told passholders that the company is not planning to use its reservation system in the 2021-22 season.
A year ago this week, lift-served skiing was broken.
Ski areas around the planet ground to a sudden halt in a desperate effort to slow the spread of contagion. Operators were distributing food from spring-break-stocked coolers and figuring out what to do with jobless workers in employee housing, all while slashing budgets and planning for what would be a historic 2020-21 ski season, upended by the coronavirus pandemic.
After a year of refunds, irked skiers, wary workers, low snow, reservations, capacity caps and long lines, it appears the resort industry is about to return to normal. And as resort operators assess the damage of the last year, the wounds are, for some, surprisingly, superficial. That’s thanks largely to drive-up skiers escaping cities and aggressive cost-cutting by resorts.
And as resorts unveil prices and plans for the 2021-22 ski season, it looks like the resort experience will soon be back on track, with a few pandemic-adjustments sticking around — but not that advance-reservation business.
“It was an amazingly difficult year on our employees and an amazingly successful year when you consider the headwinds,” Alterra Mountain Co. chief Rusty Gregory said. “The fear that struck our hearts shortly after we closed down last March — and the fear we had really all summer —(the reality) was much better than the various catastrophic scenarios we had worked up.”
Alterra competitor Vail Resorts also emerged from the pandemic in better shape than expected, with earnings and revenues for the start of 2020-21 down 27% compared to the previous season. That was a smaller loss than projected and Wall Street responded favorably, with Vail Resorts’ stock at all-time highs for the last two weeks.
On Friday, Vail Resorts chief Rob Katz told passholders that after developing and installing a mandatory booking system across all its 34 North American resorts, reservations are being mothballed. The Vail Resorts reservation system likely will book more than 12 million skier days this season, considering visitation of 13.7 million and a roughly 8% decline so far in 2020-21.
“For anyone worried that the absence of a reservation system will lead to longer lift lines, we have extensive learnings from this season around lift loading efficiencies and are implementing new strategies to materially reduce wait times,” Katz wrote in his letter to pass holders.
Katz also announced plans to quadruple the company’s customer service staff after skiers were left waiting for updates on rebates and refunds this season. (In a December letter to pass holders, Katz apologized for “unacceptable” wait times for skiers calling in to the company’s overwhelmed representatives.)
It’s probably too early for resort operators to begin detailing changes that could — or should — linger post-COVID. But one thing is certain: In the depths of a once-a-century global pandemic, skiers might not fly, shop and après, but they will go skiing. Especially if they can drive to the slopes.
One change that isn’t just lingering for Alterra Mountain Co.’s 15 North American ski areas but “is accelerating as fast as we can put money and people power into it,” Gregory said, is the digital guest experience. Contact-free buying and mobile technology got a swift upgrade this season and will remain a big part of resort business plans.
Alterra had 40 eateries on a mobile app this winter, enabling skiers to not just book tables, but purchase food for ski-up pick-up.
“It worked unbelievably well and became a big part of our business this year,” Gregory said.
At the resort operator’s dozens of restaurants, rental shops, ticket windows and even lift lines, phone apps allowed for virtual queuing to reduce the crowding and the inconvenience of waiting in a line.
“Just trying to make sure we better match capacity available with the crowds,” Gregory said.
Arapahoe Basin last week revealed a change from lessons learned this season. In a first-ever tactic in the industry-shifting season pass war, the Summit County hill will restrict pass sales for the 2021-22 season, cutting sales by 10% from this season. And it will be capping daily lift tickets, which can only be bought online. The resort expects to sell out weekends next season. Before the pandemic, it was rare to hear about any resort ever turning away skiers.
Reducing available tickets is a significant detour from the industry’s relentless push to sell more passes. (Vail Resorts, for example, reported 1.4 million Epic Pass sales for 2020-21, a 20% increase from 2019-20.)
“We are actively working to reduce the number of skiers on weekends and holidays,” Arapahoe Basin boss Al Hencroth wrote in his blog post announcing the new pass plan. “We have learned so much since COVID forced us to hit a daily target of skier numbers.”
Like Vail Resorts’ shareholders, Arapahoe Basin’s owner is bullish on skiing. Canada’s Dream Unlimited Corp. last month reported the Summit County ski area generated $24.2 million in revenue in 2020, down 38% from the 2019. But Arapahoe Basin is surging this winter. The company last month told investors the resort is “producing impressive margins” with “strong pass sales” and “relatively consistent results” in yet another pandemic-addled season.
Dream Unlimited chief Michael Cooper in February told investors that the 2019 decision to part ways with Vail Resorts as a partner on the Epic Pass was working well. Despite the capacity limits to prevent the spread of contagion, Arapahoe Basin earned more money in January 2021 than any previous January.
“And I think that this year, we’re likely to have probably our second-best year ever,” Cooper said of the ski area Dream Unlimited acquired in 1997.
While remote resort areas that rely on air traffic — like Aspen Snowmass and Whistler Blackcomb — endured painful declines in visitation, ski areas near urban areas, like Arapahoe Basin, are busy.
“Those drive-up areas that frankly have always been popular — they were very, very popular this season because they were things you do at the drop of a hat and get out of the city,” Gregory said, pointing to healthy traffic at Alterra’s close-in resorts like Winter Park, Southern California’s Big Bear and Snowshoe in West Virginia.
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Denver’s median home price is $575,000, $100,000 more than this time last year
Prices are up and open houses are making a comeback, according to the latest Denver Metro Association of Realtors Market Trends Report.
Housing costs are continuing to rise in the Denver market, the number of properties available is still low, and with warm weather and a loosening of COVID-19 restrictions, open houses are back and homebuyers are flooding in to compete on bids, according to the Denver Metro Association of Realtors monthly report.
The median closing price for homes — both attached and detached — was $575,000 in February. It was $475,000 this time last year. Single-unit homes are currently closing at a median price of $635,000, and attached units are selling at a median price of $405,000.
At the end of the month, there were only 853 detached units available — down 23.84% from this time last year. Things are even more competitive for people looking for attached residences. There were only 373 available at the end of the month, down 58.75 percent from this time last year. Cold comfort: They were up slightly from January.
The number of homes actually closing is down too: There were 3,201 last month, down 19.32% from this time in 2021.
Realtors continue to report people putting in bids well over asking price. Andrew Abrams, head of DMAR’s Market Trends Committee, wrote that he had seen bids go for $250,000 over the asking price, though he also saw a house close at $10,000 under the asking price. Typically, the better the condition, the higher the offer.
While COVID-19 put a kibosh on open houses, realtors have begun hosting them again and are reporting as many as 50 people coming to any given showing.
Abrams recommends that people waiting for housing prices to drop or more properties to hit the market to quit stalling if they can.
“With the continued demand and lack of inventory,” he said, “prices will increase and lead to another year of double-digit appreciation.”
Learn more on Denverite.
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5 Ways to Trick Yourself into Decluttering Your Home
While there are some people for whom a good decluttering session sparks joy, there are other people who need to tricked into tackling that unwieldy pile of papers or that overstuffed front-hall closet. This post is for the latter.
Here are five decluttering hacks for people who don’t like decluttering.
Invite Guests Over
My favorite decluttering hack is to invite guests over. It can be for any reason, but knowing people are coming to the house is all the motivation I need to flatten all of my Amazon packaging, sort and fold the clean laundry, and go through the mail, so I’m confident there’s some equivalent decluttering task that you will be inspired to do before your friends or family arrive.
P.S. If you have a junk room or closet where you usually throw all of this stuff when people are coming over, please don’t do that this time. The whole point of this hack is to help you declutter, not help you create a nagging nightmare down the hall.
Pretend You’re Moving
My father served in the U.S. Air Force for most of my childhood, so we moved every third June, ready or not! Our home stayed clutter-free in large part because of these frequent PCSes (permanent change of station). There’s nothing like having to wrap, pack, and label every little thing you own to make you want to burn it all in a dumpster!
Lucky for you, you probably don’t have to move in the middle of your high school career like my sister and I did. But you can use this concept, i.e. pretend you’re moving, to get rid of a lot of weird clutter you are holding on to. If you don’t love an item enough to wrap it up and carry it up and down the stairs, it’s time to say goodbye.
Take a Photo
Once it’s been there for a long time, clutter can become invisible. The secret to making it more visible? Take a photo and then go into another room, or even another building, and pull up the photo on as large a screen as you can find.
This removed point of view should give you a new perspective and increased objectivity. You may find yourself thinking, How did I not see this unsightly thing here before? and promptly getting rid of the offensive item.
Ask Your Type-A Friend to Help
If this photo trick feels too abstract for you, you may prefer this method: Ask your Type-A friend to help you declutter. You can tell them your objective and leave the room, or you can stay and help; either way, trust their fresh eyes.
If you’re nervous that they’ll get rid of something valuable, you can ask them to put anything they remove in a laundry basket for you to assess. It’s up to you if you want to move these items to a storage area or get rid of them.
Turn Off Phone Notifications (and Set a Timer)
I like to believe I’m pretty focused and good at finishing what I start. But let me tell you something: I am no match for pretty pictures on Instagram or a juicy text from a friend! Turning off phone notifications helps me to do everything faster, including decluttering.
When you’re not distracted, projects take so much less time than predicted. Don’t believe me? Set a timer for 10-15 minutes and see how much you’re able to get done.
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Turnkey Home vs. Fixer-Upper: Which Is Best for Investors?
Investing in the real estate market by buying and renting homes is one of the best ways you can grow your income on the side. However, buying a new home can be daunting even if you’re not planning to move into it.
If you’re thinking about investing in your first rental home, you may be wondering what kind of property makes the most sense for you. Here are seven tips to help you decide whether a turnkey home or a fixer-upper is best for you.
Personal Goals
Although there are many factors to consider, it’s important to start by clarifying your goals for this project. Take some time to consider why you want to be a landlord. What goals are you trying to achieve? How will this step change your life?
Once you’re clear on your goals, you’ll have a roadmap that can help you evaluate the pros and cons of turnkey homes versus fixer-uppers. Write down your goals and keep them in a prominent place so they’re fresh in your mind for the rest of the decision-making process.
Total Costs
Cost will be a major factor for which kind of home is right for you. Although real estate prices vary by location, turnkey homes are generally more expensive to purchase than fixer-uppers. The high cost is a trade-off for having less work to do before you can start renting.
Many homeowners who want to rent start with a fixer-upper and invest in it before they start renting. Both methods can be profitable, but which is most profitable depends on many different factors. Before making a decision, you should do extensive calculations and research to ensure you’ll make a profit.
Financial Aid
Most homeowners who want to rent don’t have the means to purchase a rental property outright. For turnkey properties, you can apply for a typical mortgage loan. There are many loan options available for turnkey properties, including 15-year fixed and 30-year FHA loans. After you’ve completed the purchase, rent payments should more than cover the mortgage cost.
You can also apply for a conventional mortgage to help you purchase a fixer-upper. However, most people who buy fixer-uppers prefer loans that cover both mortgage and renovation costs. These loans may have restrictions on how renovations are done, but they make the process more affordable for homeowners.
Sweat Equity
Turnkey homes get that name because they’re completely finished–all you have to do is turn the key and walk in. Since any remodeling or updates are done before you buy the property, this kind of rental requires very little work from you. Additionally, the work of finding renters and handling daily issues is usually done by a managing company that you partner with.
In contrast, fixer-uppers are a lot of work. Older homes may be missing important modern amenities, and they may contain toxic materials that you’ll need to hire professionals to handle. To streamline the process, find a trustworthy contractor who can reduce your workload.
Tricky Timing
Timing is another factor to consider before you decide which type of property is best for you. Since turnkey homes are ready to go when you buy them, you can start renting and earning income very quickly after you complete your purchase.
However, fixing up a home typically takes anywhere from three to nine months, depending on how much work you need to do and how much time you have available to spend on the project. If you’re working a full-time job, it may take longer to complete the renovations, find a renter and start making an income.
Market Impact
The housing market is always fluctuating, and it will affect the cost and availability of what’s on the market. As of February 2022, the U.S. has been experiencing a seller’s market for several years. This means the supply of homes is low, demand is high and sellers have the upper hand in transactions.
In a seller’s market, turnkey properties are more expensive than usual. Many homeowners are turning to fixer-uppers as a cost-effective option in the current market. However, supply chain issues also mean lumber and other building supplies are costly and sometimes unavailable. You should consider the market and supply availability in your area before committing to a project.
Phase of Life
Don’t forget to consider your phase of life. Think about your current responsibilities and whether flipping a house makes sense for your life right now. If you're working a full-time job and raising kids, a turnkey option might be better for you.
It’s easy to romanticize fixer-uppers, and it feels good to restore the value of something that’s run-down. However, fixer-uppers are a lot of work, and it’s important to be realistic about whether that’s where you want to spend your time. On the other hand, if you’ve weighed the cost and are still interested, flipping a home may be the perfect way to reach your goals.
Consider Your Options
Choosing the right property for your goals isn’t a one-size-fits-all approach. If you’ve got the time and can afford to wait on rent, a fixer-upper may be best for you. Conversely, a turnkey property is ideal for those who want to be more hands-off.
Use the tips listed above to help you determine whether a turnkey property or a fixer-upper is the best way for you to start investing in real estate. Both types of properties are an opportunity for you to build your income and expand your experiences.
Keep reading on RISMedia.
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