The Four-Season Management Strategy of Xiling Snow Mountain Resort
-- Exclusive Interview with Yan Cheng, Executive Vice President of Xiling Snow Mountain Ski Resort
On October 17, 2018, the CISIF (2018) Second China International Ice and Snow Industry Conference was held in Beijing. The conference focused on the current state of the ice and snow industry in southern China, with the theme “Breakthrough in the North, Expansion in the South.” It emphasized exploring strategies for upgrading and transforming the northern ice and snow industry as well as new approaches to developing the southern ice and snow market, aiming to jointly advance the growth of the ice and snow industry.
The skiing industry in northern China started earlier, and the northern skiing market is relatively mature. From the overall development trend of China’s skiing industry, the successful bid for the Winter Olympics has provided an accelerated growth opportunity for the domestic skiing market.
In the earlier period, ski resorts in the north, including those like Yabuli and Beidahu, began to face operational bottlenecks. However, as the skiing market continued to develop and public awareness of skiing gradually increased, China’s skiing industry underwent a shift from quantitative to qualitative growth.
Ice and snow resources are scarce in the south. Due to seasonal and climatic constraints, the operating seasons of southern ski resorts are relatively short. As a result, southern ski resorts tend to focus more on experience-based activities—offering snow play or simple events. Additionally, the southern customer base has limited awareness of skiing. Unlike the north, where there are many enthusiasts seeking deep skiing experiences, southern visitors typically do not choose to visit multiple ski resorts to explore different skiing environments.
The shorter skiing season and scarcity of ice and snow resources in the south make ski resorts more attractive to visitors, leading to high carrying capacity in a short time. Southern ski resorts must not only meet market demand but also satisfy the need to make these resources accessible to the public.
Southern ski resorts are also relatively scarce. For example, Sichuan has only about seven or eight ski resorts, with perhaps just two or three around Chengdu. As a result, during the short winter period, southern ski resorts often experience a surge in visitor traffic. This phenomenon differs slightly from that in the north and is a unique characteristic common to southern ski resorts.
The acceptance of skiing varies between northern and southern visitors. Most people in the south engage in skiing or snow play primarily for the experience, and their needs differ from those of their northern counterparts. Due to the scarcity of ice and snow resources in the south, children’s fondness for snow determines that most visitors come in family groups. These family trips are usually organized among relatives and friends, often involving three or five families traveling together. This is another distinctive feature of the southern visitor demographic. During winter, when friends from other provinces visit Chengdu, locals often recommend ski resorts as the top winter destination.
From a market perspective, southern ski resorts must consider visitor acceptance levels. Regardless of whether guests come to ski or not, they must be welcomed. On its busiest day, Xiling can accommodate nearly 30,000 visitors entering the resort. Of these, about 5,000–6,000 try skiing, while over 10,000 engage in snow play. Through visitor analysis, Xiling adopts a high-turnover model. In terms of controlling investment, the main focus is on transportation infrastructure, including cable cars for accessing ski areas and facilities that ensure visitors can quickly enjoy snow viewing and snow play.
To improve competitiveness and attract more visitors, Xiling Snow Mountain Resort must focus on two key aspects: First, winter is a crucial period. Xiling Snow Mountain Resort has certain geographical and market advantages, along with a brand influence built over 20 years of operation. By enhancing services and implementing effective marketing strategies, Xiling ensures that all losses and profits of the resort align with the annual financial performance, achieving break-even or even profitability for the entire year.
The second aspect is to develop four-season operations. Around 80% of ski resorts in the south are built upon existing tourist areas, which have unique environments that naturally lend themselves to year-round operations. For example, in spring, due to the high-altitude climate, alpine flowers bloom later than those on the Chengdu Plain or even across Sichuan, and the types of flowers are also different. Therefore, in May and June, we emphasize spring flower appreciation. Southern ski resorts are generally located at elevations of 1,800 to over 2,000 meters, with some reaching up to 3,000 meters. When temperatures in the plains reach around 40°C in midsummer, temperatures at the ski resorts are around 20–21°C, providing a natural advantage for summer retreats. In the current late autumn season, a “one mountain, two scenes” concept can be implemented. For instance, at altitudes above 3,000 meters accessible by cable car, early snowfall creates snow scenery, while at around 2,500 meters, visitors can enjoy the rich and layered mountain vegetation of Sichuan, featuring colorful forests and red leaves. All of these can be viewed within a single cable car ride, showcasing three or more different seasonal landscapes. Thus, establishing a four-season tourism framework is essential.
The structure of southern and northern ski resorts differs, as do their four-season operational costs. For ski resorts, overall project depreciation, site investments, and long-term operational labor costs have already been incurred. The additional capital required for four-season operations in southern ski resorts mainly involves minimal energy consumption increases. The revenue generated during this period offers higher value-added returns. In terms of profitability, both the profit structure and profit margins are higher compared to winter. Xiling’s revenue during other seasons reaches 30–40 million yuan, with net profits exceeding 60%. This is a key factor behind Xiling’s operational success.
With the approaching Winter Olympics, the nation’s ice and snow industry is thriving. Relying on its unique resources and regional advantages, Xiling Snow Mountain Ski Resort will enhance comprehensive service levels and contribute to the development of China’s ice and snow industry.