Snow at Timeshare Resorts: A Double-Edged Sword
By: Gary Porter, FMP, RS, RRC, CPA August 2024
Snow, with its pristine white allure, can transform a landscape into a winter wonderland, attracting tourists seeking the quintessential winter experience. Timeshare resorts in snowy regions often capitalize on this seasonal charm, offering activities like skiing, snowboarding, and snowshoeing. However, while snow brings many opportunities, it also presents a series of challenges that resorts must navigate. From ensuring guest safety to managing increased operational costs, timeshare resorts must strike a balance between leveraging the benefits of snow and mitigating its potential downsides.
The Allure of Snow: A Winter Wonderland for Guests
For many, snow is synonymous with winter vacations. Timeshare resorts in areas like the Rocky Mountains, the Alps, or the Sierra Nevada often market themselves as winter escapes. The appeal is clear: snow-covered landscapes offer a variety of outdoor activities that attract tourists from all over the world. Skiing and snowboarding are the most popular, but activities like ice skating, sledding, and snowshoeing also draw visitors.
For example, a timeshare resort nestled in Colorado’s Aspen might see a surge in bookings during the winter months. The snow-capped peaks and well-maintained ski slopes make it a prime destination for skiing enthusiasts. Additionally, the ambiance of a cozy lodge with a roaring fireplace and snow gently falling outside creates a picture-perfect setting that many vacationers seek.
This winter demand allows timeshare resorts to charge premium rates during the peak season, thereby increasing revenue. Moreover, the seasonal influx of guests boosts the local economy as visitors spend money on dining, shopping, and entertainment. The snow, in this sense, becomes a key asset for the resort, enhancing its appeal and financial performance.
The Downside: Safety Hazards and Increased Liability
However, the presence of snow also brings significant risks. Icy paths, snow-covered roofs, and heavy snowfall can create hazardous conditions. For instance, a guest slipping on an icy walkway could lead to serious injury, and the resort may face legal and financial consequences. To mitigate these risks, timeshare resorts must invest in safety measures, such as regularly salting walkways, clearing snow from paths, and conducting frequent inspections of property grounds.
In one case, a resort in Vermont faced a lawsuit after a guest fell on an icy staircase. The resort had not adequately cleared the snow and ice, leading to the guest's injury. The resulting legal battle was costly, both in terms of financial settlements and damage to the resort’s reputation. This highlights the importance of rigorous snow management protocols to prevent accidents and reduce liability.
Additionally, snow accumulation on roofs can lead to structural damage. The weight of the snow can compromise the integrity of the building, leading to costly repairs or, in extreme cases, collapse. Resorts must regularly clear roofs of snow to prevent such damage, but this comes with its own set of risks, as workers tasked with clearing snow must be protected from potential falls or injuries. This necessitates specialized training and equipment, further increasing operational costs.
Financial Implications: Insurance, Housekeeping, and Maintenance
Snow can also drive up insurance costs for timeshare resorts. Properties in regions prone to heavy snowfall often face higher premiums due to the increased risk of weather-related incidents. Insurance companies may raise rates to cover the potential costs associated with snow damage, such as roof collapses, burst pipes from freezing temperatures, or even flood damage from melting snow.
Moreover, the operational costs associated with snow management are significant. Resorts must allocate budget for snow removal services, purchase de-icing agents, and maintain equipment like snowplows. Housekeeping staff may also need to work overtime to keep indoor areas dry and safe, as guests tracking in snow can create slippery conditions inside the resort. These additional costs can eat into profits, particularly if snowfall is heavier or more prolonged than expected.
For example, a timeshare resort in Lake Tahoe might experience unexpected heavy snowfall in early winter. While this initially brings in more guests eager to hit the slopes, the resort also incurs additional costs for round-the-clock snow removal, hiring extra staff, and purchasing more de-icing supplies. The financial burden of these unplanned expenses can be substantial, affecting the resort's bottom line.
Structural Integrity: The Hidden Costs of Snow
Snow’s impact on a resort’s structural integrity is another critical concern. Over time, the freeze-thaw cycle can cause significant damage to buildings. Water from melting snow can seep into cracks, and when temperatures drop again, the water freezes and expands, widening these cracks. This process, repeated over time, can weaken the structure of buildings, leading to costly repairs or renovations.
A timeshare resort in the Canadian Rockies might face ongoing maintenance challenges due to the harsh winter climate. The constant exposure to snow and freezing temperatures can cause gradual deterioration of the building's exterior. If not addressed promptly, this can lead to more serious issues, such as water damage, mold growth, or even foundational problems. Regular maintenance and timely repairs are essential to preserving the resort's structural integrity, but these efforts require significant investment.
To mitigate these issues, some resorts invest in advanced building materials designed to withstand harsh winter conditions. For example, using roofing materials that are resistant to ice dams or installing heated gutters can help prevent snow-related damage. Additionally, regular inspections and proactive maintenance can catch potential problems early, reducing the likelihood of costly repairs down the line.
Balancing Act: Leveraging Snow While Mitigating Risks
For timeshare resorts, the challenge lies in maximizing the benefits of snow while minimizing its negative impacts. Effective snow management strategies are crucial to achieving this balance. This includes not only removing snow and ice but also investing in infrastructure improvements, staff training, and safety protocols.
In regions where snow is a major attraction, resorts can also explore ways to extend the winter season and diversify their offerings. For example, a resort might develop indoor attractions, such as spas, fitness centers, or entertainment venues, that can generate revenue even when outdoor activities are limited by extreme weather. This approach not only mitigates the financial risks associated with snow but also enhances the resort’s appeal to a broader audience.
Conclusion: Navigating the Winter Wonderland
Snow can be both a blessing and a curse for timeshare resorts. On one hand, it enhances the guest experience, drawing visitors eager for winter adventures and allowing resorts to capitalize on the season’s unique appeal. On the other hand, it presents significant challenges in terms of safety, structural integrity, and increased operational costs.
For timeshare resorts, the key to success in snowy regions lies in careful planning and proactive management. By investing in safety measures, regular maintenance, and diversified offerings, resorts can navigate the challenges of winter while still reaping the benefits of the snow-covered landscape. In this way, snow remains an asset rather than a liability, helping to create memorable winter experiences for guests while ensuring the long-term viability of the resort.
Gary Porter, FMP, RS, RRC, CPA is the CEO of Facilities Advisors International and has prepared reserve studies for associations since 1982. As a Facilities Management Professional (FMP) he has training in all phases of facilities management. As a valuation expert he has testified at trial more than 50 times. As a CPA he also focuses on the numbers. Gary is the author of seven books on financial aspects of community associations totaling nearly 5,000 pages and is also the author of more than 400 articles. He has been published or quoted in The Wall Street Journal, Money Magazine, Kiplinger’s Personal Finance, The Practical Accountant, Common Ground, The Ledger Quarterly, Timesharing Today, Hawaii Building Trades, and The Florida Community Association Journal. Gary is a past president of CAI (1998) and was a founding member of the CAI California Channel Islands Chapter in 1979. 47 years as a CAI member. He resides in Las Vegas, NV. Facilities Advisors provides reserve study and maintenance planning services to associations nationwide.