strategy implementation on the (1) promotion of skiing opera tions, because those operations have been the greatest profit contributor, and (2) competing for local day skiers, because this customer group contributes directly to what appears on the surface to be the resort's high profit operation skiing. As opposed to past strategies, a strategy is required which effec tively enables the resort to fulfill its mission of providing high quality, high value complete ski resort facilities and services for both individual and group destination skiers, which will, in turn, lead to (1) improved overall profit per formance, with the goal being an overall profit, as opposed to an overall loss, (2) an improved profit ratio on lodging, (3) improved profit performance on food/beverage service, with the goal being the breakeven point as a minimum, and (4) a
decreased reliance on the local area skier, and skiing opera tions generally for both revenue generation and profitability.
The strategies which must be implemented by Big Sky in the pursuit of its mission to provide high quality, high value com plete ski resort facilities and services for both individual and group destination skiers must address, among other factors, pricing. As pricing decisions are the focus of this case analysis, the strategy alternatives discussed herein deal with the pricing of skiing, lodging, and food/beverage services. It is recognized, however, that the complete strategy developed and implemented by the resort will address other relevant fac tors in addition to pricing.
The pricing strategy adopted by Big Sky must integrate price levels and policies for skiing, lodging, and food/bever age service. As there are a variety of options related to each of these three operational areas, the number of available alternatives combining policies for the three operational areas is quite large. For purposes of efficiency, these many alter natives have been winnowed do...