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SKIING IN THE ALPSSNOW SPORTS VACATIONS FOR NORTH AMERICAN FAMILIES — WINTER 2014

CONTENTSIntroduction ....................................................................................................................... 3

Executive Summary – North Americans and ski travel ...................................................... 4

A growing trend in popularity of skiing and snow sports .................................................. 5

The North American ski market

Skiers and snow sport enthusiasts have specific ski vacation demands ............................ 6

The popularity of international ski travel ........................................................................... 8

North America and beyond

The alpine ski experience

Why to choose an all-inclusive resort ............................................................................. 10

The appeal of an all-inclusive package

Distinguishing between all-inclusive offers

Pricing comparison: domestic versus international packages

Club Med is the all-inclusive ski resort leader ................................................................. 11

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INTRODUCTIONThis report provides insights into the family ski market and will address the rising popularity of international ski vacations among North American families, as well as the dramatic shift in their desires and expectations.

Commissioned by Club Med North America, the report highlights the growing consumer trend of desiring premium, international ski travel in scenic destinations with quality ski runs for skiers of all levels. It examines the demographics looking for these types of vacations, how much they are spending and their needs and desires once on vacation.

Club Med is a leading worldwide family vacation provider and the pioneer of the all-inclusive concept. Through comprehensive research, which was begun after seeing a 35 percent increase in Club Med ski destination travel, it was discovered North American families are traveling internationally to fulfill their ski experience expectations. It’s vital for hoteliers like Club Med to understand these consumer trends to meet this demand.

Our mission is to provide North Our mission is to provide North Americans

with our premium all-inclusive ski vacation

packages. There are a wealth of activities

both on and off the slopes – along with

complimentary access to winter sport lessons

by professional instructors from the Official

Ski Schools of Italy, Switzerland, and France.

You’ll find that our ski resorts have some

of the most luxurious accommodations in

our portfolio, along with wellness activities,

gourmet regional dining, and childcare

services. Air and transfers may also be

included in ski packages to ensure your

travel is wholly stress-free.”

– Xavier Mufraggi, CEO of Club Med North America

Unless otherwise noted, all figures are from original market and consumer research data provided by: US Skier and Ski traveler report – PhoCusWright’s (July 2013) 2014; International Report on Snow & Mountain Tourism (Laurent Vanat); Le Tourisme de Montagne: Tendances & Bonnes Pratiques en Amerique du Nord - Paul Arsenault - 8th Worldwide congress for Snow and Mountain Tourism (April 2014); Simmons OneView - Experian

REFERENCES

1 “Total active domestic skiers/snowboarders: 1996/97 to 2012/13.” NSAA. 2013.

2 “2008-2009 Canadian Skier and Snowboarder Facts and Stats.” Canadian Ski Council. 2009.

3 “The International Ski Market.” ISIA Ski Congress. May 2014. 

4 “The International Ski Market.” ISIA Ski Congress. May 2014.

5  “French Alps Ski Resorts.” www.peakretreats.co.uk. 2014. “Snow History.” www.sno.co.uk. 2012.

6 “Ski holiday trends 2013/2013.” TourismLink. December 2013.

7 “Ask Trip Coach: All-Inclusive Resorts.” Budget Travel. January 2010. 

8 “TripIndex Ski 2013/2014.” TripAdvisor. November 2013.

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EXECUTIVE SUMMARY NORTH AMERICANS AND SKI TRAVEL

• The North American ski market is substantial and continues to undergo exponential growth

• Skiers have multiple demands when it comes to a ski trip, including quality snow conditions with consistent snow fall, challenging ski runs, location scenery and ski instruction

• Ski travelers are also looking for an upscale experience, but affordability and convenience are important considerations

• Upscale hoteliers are offering an affordable, turn-key option for international ski vacations

The number of skiers vacationing

in the Alps climbed 6.1% from

2011/12 to 2012/13

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A GROWING TREND IN POPULARITY OF SKIING AND OTHER SNOW SPORTSThe North American ski market

In the U.S., there are approximately 23.3 million skiers, with an increase of 840,000 between 2011/12 and 2012/13.1 To the north, 2.5 million Canadians over the age of 12 ski and/or snowboard, with the percentage of Canadians on the trails increasing to more than 86 percent.2

Many of these North American ski enthusiasts are ski travelers, accounting for millions of annual visits to ski areas domestically and internationally. With the tendency to travel in groups, more than half of all ski trips include three or more people, and nearly one-third of travel parties are families with children younger than 18 years old.

2011/12 2012/13

23.3 million 22.4 million

86%

U.S. Ski Market Canadians who ski & snowboard

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Excellent quality of snow

Short distance to slopes

Various advanced/ expert trails

Vast number of lifts

Attractive scenery

MOST IMPORTANT FACTORS FOR SKIERS

84% 65% 55% 53% 41%

SKIERS AND SNOW SPORT ENTHUSIASTS HAVE SPECIFIC DEMANDSWhen planning a vacation, ski travelers must take a lot into consideration. With nearly half of ski travelers agreeing the sport is an important part of their lifestyles, there are a number of things they expect when on a ski trip. They want premium destinations that include exceptional skiing conditions and offerings, including quality snow conditions, short distances between lodging and ski slopes, a vast number of advanced trails and attractive scenery.

One of the main trials ski travelers have faced in recent years has been the quality of ski conditions. With inconsistent and undependable snowfall in the U.S., skiers are faced with the challenge of locating a ski resort that consistently meets or exceeds the snow quality they expect.

Because most avid ski enthusiasts who go on ski vacations are more likely to rate themselves as advanced or expert skiers, they need to find destinations to accommodate their skill level. Finding a destination that offers quality ski instruction could be a major factor for advanced skiers looking to further hone their skills, as well as the 31 percent who take ski trips with their children and want their kids to have instruction to help them master the sport, too.

Beyond skiing, when vacationing, these individuals and families want to have the authentic experience of international travel. This includes sightseeing and shopping in quaint villages, visiting local attractions, and enjoying the regional cuisine.

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65% of skiers agree that a

short distance to the slopes

is most important

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THE POPULARITY OF INTERNATIONAL SKI TRAVELNorth America and beyond

Each year, more than 400 million ski trips are taken worldwide, with 21 percent taken in North America.3 For U.S. skiers, Colorado, Vermont, California and Canada are the most popular ski sites. While these domestic locations are still top choices for North American skiers, international ski travel is an increasingly attractive option for a variety of reasons.

Part of this could be the number of ski lifts and trails in the Alps, which have such great accessibility and diversity of runs.

For instance, the largest interconnected ski resort in the U.S. has about 30 lifts, which doesn’t compare to the 170 lifts linking 400 miles of diverse ski trails at Les Trois Vallées, one of the largest linked ski resorts in France. In fact, the French Alps are home to the three largest ski areas in the world.

The alpine ski experience

Because of the consistently better ski experience, international travel to the European Alps is on the rise for North Americans and skiers around the world. In fact, the Alps have the most internationally visited ski domains in the world, accounting for 45 percent of total skier visits, with the number of skier visits having climbed 6.1 percent from 2011/12 to 2012/13. 4

Apart from the authentic regional experiences found in the European Alps, skiers have miles of untracked, powdered snow to enjoy. When comparing destinations in North American to those in the Alps, the diversity in challenging runs is superior in the latter.

The Alps are home to some of the most beautiful ski areas on the planet, with mountain views that are nothing short of awe-inspiring. Regional sightseeing abounds, from storybook villages

with rustic alpine architecture to horse-drawn carriages, charming boutiques, and museums with fascinating collections of art, crafts, and alpine history — unique scenery you won’t find anywhere else in the world.

Whether you’re taking in the breathtaking view from the Aiguille du Midi, a French cable car with the highest vertical ascent in the world (from 3,397 feet to 12,605 feet), or skiing down the endless runs and diverse terrain that hosted many famous Olympic events, the Alps provide dramatic landscapes that everyone from novice to expert skier will appreciate.

Side-by-side Comparison of French Alps to ColoradoCHALLENGING SKIING:

SKI LEVEL

Beginner

Intermediate

Advanced

Expert

Vail, Colorado Val Thorens, France

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28

67

6

68

104

110

35

8

Chamonix, Mont-Blanc, 95”

Tignes Val Claret, 65”Peisey-Vallandry, 62”

Valmorel, 53”

Val d’Isere, 65”

Val Thorens Sensations, 58” Méribel l’Antares, 53”

Pragelato Vialattea, 48”

The Alps have the most

internationally visited ski

domains in the world.

������������ ��������������������������(in inches)

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WHY CHOOSE AN ALL-INCLUSIVE RESORT The appeal of an all-inclusive package

As people are traveling farther and in larger groups to reach premium ski destinations such as the Alps, they increasingly opt for all-inclusive packages that are seamless and stress-free.

While price-conscious, ski travelers are willing to pay more for better services and amenities such as upscale accommodations, gourmet food, a wide variety of activities and family-friendly activities, at superior ski destinations.6

As ski travelers desire the convenience of more turn-key vacations, upscale ski resorts have taken it upon themselves to offer more comprehensive packages that meet these expectations.

Distinguishing between all-inclusive offers

When choosing an all-inclusive ski resort, visitors should know what their package includes. While there are many interpretations, at bare minimum, an all-inclusive package consists of accommodations, three meals a day and some on-site activities.

There are many all-inclusive resorts that do not go above this, leaving visitors with added costs. Airfare, transfers to and from the airport, ski lift tickets and gear, ski instruction from certified professionals, off-site amenities, childcare and wellness services are not typically offered in the base price.7

Few hoteliers offer such services and amenities, but those that do are leading the industry as the market becomes increasingly competitive.

Pricing comparison: do-it-yourself versus international packages

It is a common mistake for people to think traveling abroad for an all-inclusive ski trip is more expensive than taking a domestic do-it-yourself vacation to the slopes. In truth, traveling without an all-inclusive package could be up to four times more expensive than an all-inclusive trip abroad.8 In fact, staying one day in Vail, Colorado, costs $783, which is equivalent to traveling to the Alps and experiencing premiere skiing at an all-inclusive resort for four full days!

DESTINATION Club Med Val d’IsèreIn the French Alps

“Do-It-Yourself”Aspen, Colorado

Roundtrip airfare INCLUDED $1,192 ($596/person) 1

Roundtrip private transfer to resort

INCLUDED $50

Accommodations (7 nights) INCLUDED $4,106 2

Lunch and dinner INCLUDED $1,400 ($100/person/day)

Alcoholic/non-alcoholic beverages

INCLUDED $350 ($25/person/day)

Lift tickets (6-day pass) INCLUDED $1,308 ($654/person) 3

Ski/Snowboard lessons and guide (5 days)

INCLUDED $1,490 ($745/person) 4

Tipping (15%) INCLUDED $154

Price per couple $6,500* $10,050

Price per adult $3,250* $5,025

Gourmet regional dining

Wellness amenities

Professional ski instruction

1 Sample flights for travel January 18 to January 25, 2015 from New York (LGA) to Aspen, CO (ASE). 2 Price from Tripadvisor’s “TripIndex Ski: Winter 2013-14” with 2% inflation applied. Inflation figures from Kiplinger’s Economic Outlooks August 2014. 3 Prices from www.aspensnowmass.com. 4 Prices from www.aspensnowmass.com for 5-day adult group lesson. * Price is per adult of 12 years and older, based on double occupancy in a Club Room for a 7-night stay. Round-Trip flight included from New York (JFK) to Geneva (GVA) based on travel January 18 to January 25, 2015. Membership fee not included. General Conditions: Blackout dates apply, including holidays and other dates. Club Med Membership fees of $60 per adult and $30 per child are additional. Other restrictions apply including brochure terms and cancellation/change fees. Not responsible for errors or omissions. Void where prohibited or restricted by law.

Val d’Isere, French Alps

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CLUB MED IS THE ALL-INCLUSIVE SKI RESORT LEADERFrom the time Club Med opened its first all-inclusive ski resort almost 60 years ago, it has been dedicated to crafting the highest-quality resorts in outstanding destinations. Of its 65 all-inclusive resorts worldwide, Club Med boasts 22 ski resorts in the Alps alone.

Club Med offers the most incredible ski resort destinations in world-renowned ski domains at prices as low as $199 per night per person; and at family resorts, kids under 4 years old stay free.* Unlike other resorts, Club Med offers a truly all-inclusive ski experience. Airfare, transfers, spacious accommodations, lift tickets, childcare for most age groups, wellness amenities, premium beverages and gourmet cuisine prepared by professional chefs are typically included in ski packages.

Additionally, expert snow sport lessons taught by certified professionals are included in every all-inclusive ski package at Club Med. Depending

on the country, guests of all ages and levels may train with expert instructors from the corresponding Official Ski Schools of France, Italy, or Switzerland.

When it comes to planning for a premium skiing vacation, Val Thorens, France, is the ultimate destination. Ranked the World’s Best Ski Resort Area in the 2013 World Ski Awards, Val Thorens offers 373 miles of powdery ski runs. This chic and modern resort immerses guests in European culture with plenty of sightseeing, great nightlife, and fabulous restaurants and bars with gourmet regional dining (one of which includes a menu designed by a 2-star Michelin Chef).

For families traveling with kids, childcare services are included for kids 4-17 years old at family resorts. Club Med resorts such as Valmorel, France and Pragelato Vialattea, Italy are renowned for their superior kids clubs and diverse range of activities for children.

Catering to guests’ demands for refined appointments, Club Med offers luxury accommodations at select resorts, including Val d’Isère and Valmorel, both of which are in the French Alps. Along with posh suites with premium views, guests of luxury spaces access exclusive bar-lounges and ski lockers, and they also enjoy private parties, in-room breakfast services and special concierge services. The

Chalet-apartments of Valmorel, France even offer a personal butler and private chef.

To meet North American travelers’ desire for turn-key international travel, Club Med recently launched a new “City Stop” program to give guests a seamless stay in Paris before or after ski resort stay. Everything is taken care of – flights, transfers, even the hotel stay.

* Blackout dates and restrictions apply; see website for Terms and Conditions.

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For further information or copies of this report, please contact Club Med North America, 6505 Blue Lagoon Drive Miami, FL 33126

For interviews or press information, please contact: Tanya Ansaldi, Public Relations Manager Tanya.Ansaldi@clubmed.com

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