Parts 1 and 2 of this three-part series laid the foundation for successful strategies to hedge against today’s high construction costs, particularly in resort locations where labor shortages and on-mountain construction further augment the cost of doing business. Savvy preparation and smart design are critical first steps in saving real money over the life of a project. These are largely defensive steps, however, based on empirical models and/or best practices established by others. With revenue, on the other hand, you can go on the offensive to move the needle into the green zone.

Revenue is a straightforward concept. For every dollar spent, you hope to see that dollar again (and then some) as a return on investment. The bigger the spread, the better.

But if the goal is to turn straw into gold, there is a still the reality of supply and demand. Straw, by nature, is a commodity; the more ubiquitous your product or service, the more difficult it becomes to raise top-line revenue above costs. A bit of alchemy is required to transform a 25-cent cup of coffee into a Starbucks latte, say. 

Set your Time clocks

Given the cost of construction, new or renovated facilities will need to wring out every dollar, all day and every day, throughout their 20- to 30-year lifespan. To maximize revenue, we suggest using three simple tools to move beyond commodified expectation. We call these tools “Revenue Time Clocks.” 

24/7 time. The first, a 24/7 time clock, can be used to determine how a building can generate income morning, noon, and night, ideally 24 hours a day, seven days a week. With an expensive building, consider how and when that building can drive revenue. 

For example, a small café positioned near the restrooms can serve a quick breakfast or snack to arriving guests without having to open the entire food service operation. Throughout the day, the café can serve hot beverages and grab-and-go items to guests coming in for a quick break. At the end of the day, it can become a place to grab a snack for the ride home. 

Other considerations: How will the bar and outdoor deck areas promote après ski? Where does the band play? Are there further opportunities to host private parties and special events?

Four seasons. The “Four-Season” time clock acknowledges the advantage of spreading the cost of a building over multiple seasons. It is very difficult today to justify the cost of a new building that is used little more than 100 days per year. 

Already, many resorts pursue summer programs, weddings, and other special events. Nevertheless, the quest for multi-season use becomes more challenging when a resort juggles numerous on mountain assets. And the spring and fall shoulder seasons are always difficult to program. 

That makes it important to ask the right questions and explore for viable solutions based on a facility’s location, setting, and fundamental attributes. An example: Given Bretton Woods’ proximity to the historic Mount Washington Hotel in New Hampshire, Omni Resorts designed its mountaintop Rosebrook Lodge not only for skiers and riders, but also to serve as a year-round, experiential-based dining option for its hotel guests. The facility also provides the resort additional meeting and conference space; the ski lodge was named the “Best New Conference Facility” by Hospitality Design in 2023.

In Utah, Sundance Mountain Resort offers art programs and summer theater to supplement more typical summer operations. These offerings fill rooms during the shoulder season and underscore Sundance as a place for art and culture in addition to mountain sports.

Adult learning camps also represent a hospitality trend, where individuals pursue interests in pottery, plein-air painting, stargazing, and botany. Another idea: a mid-mountain lodge can serve as the food and beverage hub for a summer glamping operation.

The time clocks are tools to help operators maximize the revenue potential of a new or renovated facility.

Bridging the generations. The recent trend toward multi-generational travel is well established. In mountain locations specializing in outdoor activities, though, this can prove a mixed bag. If your operation is not careful, grandparents will be all too happy to claim prime dining-room real estate to stay warm, read a book, or to watch their family members and other folks ski. 

To prevent this, several resorts have experimented with “Elder Programs” to address individual needs and get all three generations to open their wallets. Ideas include designating off-peak viewing areas, including food and beverage options, and circulating wait staff. Retail bundles and free shipping programs encourage seniors to stock up on logo wear for friends and family members who may or may not be on site. “Never Too Late” learning programs are another way to engage non-skiers and offer benefits for health and well-being. 

Industry statistics suggest that as much as 7 percent of your winter guests may be non-skiers or -boarders. They are at the same time largely healthy, curious, and looking for something to do. The multi-generational time clock is a reminder to provide a service or special amenity for everybody. 

Technology, Operations, and Labor: Revenue- Enhancing Trends

Many resorts, in an effort to counteract labor shortages and high costs, are increasingly turning to emerging technologies to serve guests. Many are also looking at minimizing on-site production of goods and services for the same reason. The following suggestions highlight some current trends that we are seeing, in no particular order. 

The march of technology. Despite some early fits and starts, new technology to facilitate purchasing is quickly transforming the industry. This is particularly true in food and beverage, where apps, QR codes, and ordering kiosks are replacing the traditional food hall model where you wait in line to pay. 

Limited menus. A targeted return on investment often means a strategic approach to what you offer, especially when it comes to food and beverage options. It may be time to retire the generic, non-branded food hall, or at least end the habit of offering the same menus in each individual venue.

Yes, you will always need to sell burgers, chicken fingers, and French fries—they are the big sellers. Vegetarian and vegan options are also a must. But expansive menus and multiple food offerings require additional food stations, additional staff, and the need to manage the quality and preparation of every offering. There is also more food inventory and potential waste.

Rather than expanding options, we see more new menus are branded and thematic. There is considerable overlap between proteins and other fundamental ingredients between items. You pay up front, Chipotle style, thereby eliminating the need for scramble space and check-out cashiers.                    

Forget about fresh. A big food-and-beverage trend several years ago was all about fresh, locally sourced ingredients and products produced on site. Not anymore. On mountain real estate is too valuable (read: expensive), and many resorts have seen wage inflation over the last few years at close to 50 percent, a rate that exceeds construction inflation by quite a bit. The move away from fresh ingredients corresponds to the improved availability of quality frozen products. The pre-prepped product itself may prove a bit more expensive, but it can be much cheaper overall when considering the costs of labor and resort real estate.

Turn, baby, turn! For years, the assumption of 3 to 3.5 turns per seat has been the industry standard for a high-volume dining hall. Today, we are looking to increase the average turn to 4 or even 4.5. How are resorts doing so? By adjusting pricing models by the hour, providing varied seating, including stand-up options, and by more rigorously policing dining room real estate grabs and brown bagging. 

Do the math: a reduction of the need for 125 seats by increasing turns translates to a cost reduction of $1.875 million, assuming 15 square feet per seat and a construction cost of up to $1,000 per square foot. The operational focus can then move from seats to pushing volume and increasing revenue and profitability. 

Dine and dash. Another big trend: Expanded cafés and “general store” concepts that offer packaged items and good food to go. This approach not only saves labor (items can be prepared in advance and are often self-serve), it also minimizes the need for indoor seating at the tune of 15 square feet per seat. 

Plug-and-play construction. Off-site construction can play a role in revenue generation. At first blush, the trend appears to be more about saving money than revving up sales. But it represents what we see as an increasingly holistic view regarding construction that factors in a combination of scarce labor, the quality of the local subcontracting market, and the speed of construction. Look at it this way: a construction method that’s more expensive up front might be the better option if it means getting the job done quickly. The faster the completion date, the earlier one can generate income to earn a return. 

A post and beam, cross-laminated timber (CLT) structural system offers an example. While this is an expensive design option, there are advantages in off-site production, ease of assembly, and pre-finished interior wall and ceiling panels. Prefab wall and ceiling panels, railings, and purchased case goods versus custom millwork are other examples where a building can be “assembled” versus constructed on-site. 

Brand Forward/Brand New

For any planned construction project, it’s important to think beyond the building’s key functions—i.e., providing rentals and selling food—despite the likely high initial costs of thinking bigger. The magic happens when you add something special to increase the perceived value of your offering beyond the costs of doing business, including the fixed cost of a very expensive building. When you offer a good product and spin a good story, that can make the difference between profit and loss. 

Your brand is your mousetrap. Your brand is what separates you from your competitors and gives your guests a reason to choose your resort over someplace else. A strong brand, moreover, often allows you to deliver value to the customer while charging a premium. An expensive burger, for example, may be worth it when it is especially easy to order (convenient), tastes great (sensory), and is served with flair within a one-of-a-kind environment that is memorable and worth talking about (an Instagram moment). 

The Kanc 8 lift facility at Loon Mountain, N.H., which houses a top-of-the-line eight-place lift, reinforces the resort’s technology-forward brand and has added wow-factor.

Consider Loon Mountain, N.H., which is building its brand around the use of innovation and guest-friendly technology with the goal of becoming New England’s go-to destination, as outlined in the resort’s “Flight Path: 2030” 10-year growth plan. The resort’s Kanc 8 lift facility, new in 2020-21, with its sleek steel, glass, and timber structure, which houses a first-in-the-East Doppelmayr eight-passenger, high-speed, bubble D-Line chairlift, meets that brand standard. The unique design solution (a guest skis into the building to load) increases capacity and efficiency, driving fresh revenue growth, and the building itself has wow-factor, transforming it into an social media icon.

Or, at Sundance, the resort is reinforcing the Old West, “Butch Cassidy and the Sundance Kid” spirit lovingly nurtured by Robert Redford, the resort’s previous owner, with projects like the new Outlaw Express lift, the re-built Lookout dining facility, and a 56-unit inn, currently under construction. The inn’s low-scale massing echoes the one- and two-story buildings that comprise the existing village, and it is broken into three components, connected by a covered bridge crossing the resort’s signature creek, that maximize views. While this unconventional design is more costly than a simple, stacked box, the bet is that it will pay off in the long run by reinforcing Sundance’s commitment to living lightly on the land and supporting top-dollar room rates. 

Increasing Revenue Can Make the Difference

We began this series on construction costs by illustrating what we call the “Financial Pyramid” (at right). You must build a solid foundation that allows you to at least break even. Benchmarking, due diligence, best practices, and smart design are all part of a strong base. Revenue growth and associated profits, on the other hand, are a function of what makes you and your resort unique. They are the cherry on top.

Some of the elements that make a place magic are obvious. These can be interpreted cleverly at individual resorts for a somewhat different effect. Other elements are unique, proprietary in nature, and often bolster the bottom line beyond what is normally considered possible. 

With high construction costs likely here to stay, it’s crucial that you make the most from your secret sauce—and bake that something extra into all aspects of the guest experience. 

That’s the hard part, of course. 

So get creative and work on inventing what’s next. To work around the construction cost crunch, avoid commodification and the trap of trying to be all things to all people. Focus instead on revenue growth that will outpace the costs of your operation. It’s worth the climb. Plus, it’s the only way out given today’s high cost of doing business.  

John Ashworth, AIA, is an architect and principal at Bull Stockwell Allen, specializing in concepting, feasibility, and the realization of four-season destinations including lodges, hotels and resort residential projects. Bull Stockwell Allen has been involved in resort, recreation, and hospitality design and planning since the 1960s.