THIS REPORT WAS UPDATED ON AUG. 14

SAM Magazine—Portland, Ore., Aug. 4—The role and impact of reciprocal pass agreements has been put in the spotlight as Indy Pass has requested its partner resorts terminate their reciprocal deals with Ski Cooper, Colo., whose large and growing roster of pass partnerships has put it in position to potentially compete with Indy Pass for sales to consumers, according to Indy Pass.

The issue emerged in July after Indy Pass asked several of its resorts partners to drop reciprocal arrangements with Ski Cooper, Colo., after Ski Cooper joined the Powder Alliance, expanding its extensive reciprocal network to 74 resorts. 

The move led Indy Pass to view Ski Cooper’s $379 season pass (a July sale price that has now increased to $479) as a competitor to its own $379 multi-resort pass product. “When Cooper added 22 high-profile Powder Alliance resorts on July 1, we had no choice but to bring the issue to light,” said Indy Pass founder Doug Fish.

The issue, as Fish sees it, is that "We saw a continuing trend with Ski Cooper selling what had become a national pass that was manipulating the intended purpose of reciprocals” by not simply offering Cooper passholders the chance to ski other resorts for free, but by encouraging consumers outside of Cooper's primary market area to purchase an inexpensive Cooper pass that undercuts the partners' own pass prices. Fish pointed to the pass partners map on Ski Cooper’s website as an illustration of the season pass’s nationwide scope.

For his part, Ski Cooper president and CEO Dan Torsell told SAM, “At this particular point in time, there is nothing that I would choose to add to any story dealing with Indy Pass’s recent business maneuvers. Perhaps after the dust settles, that may not be the case, as there needs to be correction and clarification of some previously published information. 

“I believe that ski area/resort operators are competent and intelligent business people who are capable of making responsible business decisions on their own, based on the individual circumstances within which each operates. Cooper is always happy to engage directly with our reciprocal partners, to share data and discuss ideas,” he added, echoing a statement he provided to The Storm Skiing Journal, which reported news of Indy’s intention to limit partners’ reciprocal deals with the ski area in July. 

While Ski Cooper’s season pass is not a multi-mountain revenue-sharing product like the Indy Pass, it has been identified by some media outlets in recent years as a pass that grants holders similar national access at a competitive price point. In joining the Powder Alliance this summer, Ski Cooper expanded its reciprocal footprint, which was already strong in the Rockies, Midwest and Northeast, to include nearly two dozen additional ski areas primarily in the North American West. 

Too Much of a Good Thing?

Reciprocal partners allow a resort to offer its own passholders the added value of access to the other resorts. That added value can help increase a resort's pass sales. But if a partner begins to sell a significant number of passes to a resort's own local customers, which siphons revenue from the resort, that would defeat the original purpose of the arrangement.

Indy’s concern about this potential abuse of the reciprocal system is encouraging some Indy partners to look at their reciprocal agreements more closely.

When asked whether he was worried about skiers and riders outside of Ski Cooper’s market purchasing the ski area’s season pass en masse, John McColly, Powder Alliance organizer and CMO of Mountain High, Calif., a Powder Alliance and Indy Pass partner, said, “While we’d like to think that joining the Alliance will help Cooper sell more passes, we don’t anticipate that there are going to be a lot of folks in, say, New Mexico buying a Ski Cooper pass to ski three days at Angel Fire [another Powder Alliance partner].”

Another Powder Alliance and Indy Pass member in the Rockies SAM spoke with was similarly unconcerned, and noted that they, too, had spent considerable time and energy building reciprocal partnerships as a way of adding value to their own season pass. Although, the operator acknowledged, the potential to game the reciprocal system was likely different from region to region, with distances between resorts in the West making it harder for folks to take advantage of reciprocal offers.

In the Midwest, for example, where ski areas are often (but not always) closer together, some operators who are both Indy Pass partners and had or have reciprocal deals with Ski Cooper (either individually or through the Freedom Pass coalition, of which Ski Cooper is a member) have reported seeing a surprising, if ultimately financially negligible, number of Ski Cooper passholders with local zip codes visiting their ski areas—suggesting that the pass may be attracting some of its partners’ market share. 

One such operator reported that three neighboring Midwest ski areas collectively saw roughly 100 visits from Ski Cooper passholders with local addresses, which “at that level, is not enough to damage revenue, and the added value of the reciprocals to our pass holders far outweighs the cost. But if that number grows, that could impact business and cause us to re-evaluate some of our reciprocal offerings.”

“This seems to be a case-by-case issue where some operators do have warranted concerns, but we closely track reciprocal use and we have not seen any issues with the reciprocal system” said John Melcher, CEO of Crystal Mountain, Mich., an Indy Pass partner that had a direct reciprocal arrangement with Ski Cooper last winter. “If anything, our passholders have used it the other way around.”

Partnerships Under the Microscope

In July, said Fish, “We had discussions with many Indy partners and built an overwhelming consensus that Indy needed to take a position: If an Indy resort wants to be on the Cooper pass, we are happy to support that choice—they just can't be on Indy at the same time.”

Fifteen of 16 ski areas elected to remain on the Indy Pass, “and get paid for their visits,” said Fish, adding, “Independent resorts like to make their own choices, and that's what they did.” 

Of the 15 resorts, two, Caberfae Peaks and Crystal Mountain, Mich., ended their individual reciprocal agreements with Ski Cooper but joined the Freedom Pass, keeping Ski Cooper as a reciprocal partner through that coalition. Seven Oaks, Ind., opted to keep its reciprocal agreement with Ski Cooper and leave Indy Pass.

Right now, Indy is not drawing a line when it comes to its partners’ other reciprocal agreements, such as the Freedom Pass and Powder Alliance. The specific issue with Cooper seems to be focused at least in part on pricing. Cooper’s competitive sale price and large reciprocal program make it a tempting product for folks outside of Cooper’s market who are willing to string their season together with visits to multiple resorts—the same market Indy courts. Although, as Indy Pass brass will point out, they pay participating ski areas for visits redeemed on their product while Cooper does not.  

“Ski Cooper’s sale price may not be sustainable for reciprocal partners,” observed McColly, who added that Powder Alliance is discussing what a fair and acceptable base price for coalition members might be going forward “to keep everybody on the same playing field.” 

Freedom Pass has a floor for the price at which member ski areas can sell season passes with reciprocal benefits, and more than one operator with a reciprocal arrangement with Ski Cooper found the ski area’s season pass sale price to be within reason.

The anonymous Midwest operator SAM spoke with echoed a desire to ensure pricing integrity among reciprocal partners: “We used to court reciprocals without much oversight. Now, we are paying more attention to the pricing of our reciprocal partners.” 

While that increased scrutiny is probably a healthy outcome of Indy Pass's actions, some Indy Pass partners have expressed dissatisfaction with the way things have played out. “The current Indy Pass Agreement specifically allows reciprocals, so their sudden change of position mid-contract was disheartening,” Caberfae Peaks co-owner and GM Pete Meyer told The Storm. “Not to mention Indy Pass had already sold out for the 2023-24 season, which made the timing of the ultimatum that much more perplexing.”

While Indy Pass suspended sales in April after renewals and new purchases exceeded expectations, Fish said that sales for add-on passes will resume, and that the company is considering reopening limited sales to the general public in the fall.

It's All About Value

Many of the operators who spoke to SAM see value in both Indy Pass participation and reciprocal programs. “The Indy Pass works well for us, and the reciprocals work well,” said Melcher.

Operators calculated that reciprocal deals, despite the potential for abuse, increase the value of their passes and help generate additional sales.

Indy Pass, of course, also increases a resort's revenue. Indy Pass says its average payout to resort partners is $81,000, and that the mean payout is not far off that. Although, not every Indy Pass resort is big enough or in the right location to command much revenue through the revenue-sharing multi-mountain pass model. 

“We love receiving two large checks from Indy each season,” said Paul Alden, GM of Solider Mountain, Idaho, which ended its reciprocal arrangement with Ski Cooper per Indy Pass this July. “[Winter] 2023-24 will be our third season with Indy, and their numbers of guests has increased substantially each season,” he added, noting that the former reciprocal agreement with Ski Cooper delivered only a few guests and didn’t pay dividends.

The sentiment was echoed by Nate Birr, COO of Buck Hill, Ohio, which also dropped Ski Cooper in July. “We also get significantly more visitations of guests utilizing the Indy Pass when compared to the Ski Cooper pass.” Although, he added, “Our relationship and arrangement with Ski Cooper had been in place for a number of years and long before we were part of the Indy Pass program. We have always felt like it was a great relationship and a great value add for our season pass holders to give them access to a resort out west.”

Other, less tangible benefits also factor into the value proposition for some operators. For example, when it comes to reciprocal deals, said Ross Boisvert owner and GM of McIntyre, N.H., a Freedom Pass partner and Indy Allied Resort, “For a small ski area like us, I think it is important for our passholders and people in our learn-to programs to have free and discounted opportunities to go to other, bigger resorts and experience that; it helps us grow the sport. Reciprocals are also a chance to build relationships with other operators.”

“The deals should be fair for everyone involved,” cautioned Boisvert, who helped launch the Freedom Pass more than a decade ago. “But with all the different programs out there, I think people forget we are all in this together to grow the sport,” he added. “There is enough market share for everyone.”

“Despite the tabloid noise,” said Fish, “Indy is not at ‘war’ with anyone. Our stance on the Ski Cooper pass directly supports our core mission of supporting independent areas.”

As for Ski Cooper, “While we wait for the dust to settle, it is business as usual for us here,” said Torsell.

Ed. Note: SAM will continue to follow this story as new details emerge. While SAM spoke to a number of operators for this report who are partners on the Indy Pass, reciprocal partners of Ski Cooper, and/or part of reciprocal coalitions like Freedom Pass and Powder Alliance, we would be interested in hearing from more operators (on or off the record) who may want to share insights, concerns, or ideas about what some are describing as the "growing pains" that come with the success experienced in the last few years by passes and reciprocal programs aimed at bolstering independent ski areas. Email us at news@saminfo.com.