Analysis of Target Markets Essay
Analysis of Target Markets
For this assignment I chose to use Vail Resorts as my publicly traded hospitality organization. The primary target market of Vail Resorts is explained in their annual report for 2007, on page 16 of the report this is what it says,The Companys Colorado ski resorts appeal to both day skiers and destination guests due to the resorts proximity to Colorados Front Range (Denver/Colorado Springs/Boulder metropolitan areas), accessibility from several airports, including Denver International Airport and Eagle County Regional Airport, and the wide range of amenities available at each resort. Colorado has approximately 26 ski areas, six of which are classified as Front Range Destination Resorts, including all of the Companys Colorado resorts, catering to both the Front Range and destination-skier markets. All Colorado ski resorts combined recorded approximately 12.6 million skier visits for the 2006/2007 ski season with skier visits at the Companys Colorado ski resorts totaling approximately 5.3 million, or approximately 42.3% of all Colorado skier visits for the 2006/2007 ski season(2007 Annual Report).
So according to this report Vail Resorts primary target market is day skiers or Colorados Front Range community. It also states this on page 19 in the 2007 annual report,In-State Visitation:The Colorado Front Range market, with a population of approximately 3.8 million, is within approximately 100 miles from each of the Companys Colorado resorts, with access via a major interstate highway. Additionally, Heavenly is proximate to two large California population centers, the Sacramento/Central Valley and the San Francisco Bay Area. These markets provide the Company with excellent opportunities to market its season pass products which provided approximately 25% of the Companys total lift revenues for the 2006/2007 ski season (2007 Annual Report).I fully agree with Vail Resorts on their primary target market being day skiers or Colorados Front Range community. I personally know many people in the Denver area that go skiing every weekend in the winter.
Vail Resorts gets a fraction of their revenue from season pass products which are purchased by the Front Range communities, so those people that buy these products are a huge market for Vail Resorts. So according to the report approximately 3.8 million people live within 100 miles of the five resorts that Vail Resorts runs in Colorado. That is a huge market of people for the resorts. When I verbally interviewed my friend Rachael Pagels she said, I believe that the people that live in and around Denver would be the primary target market because there are so many people and they live so close, so they would be able to visit the resorts more than out of town travelers.One of the largest secondary markets for Vail Resorts is destination guests. Destination guests are those individuals who seek a destination vacation.
Wikipedia states, another characteristic of a destination resort is that is offers food, drink, lodging, sports, entertainment, and shopping within the facility so that guests have no need to leave the facility throughout their stay (Resort). Vail Resorts has had all of their ski resorts in the top 10 list for many years, so people will come to the best. Vail Resorts markets to destination guests and has so much to offer for singles, families, and really just anyone that likes what Vail Resorts has to offer. Vail Resorts prides itself on its many offerings like lodging, restaurants, bars, clubs, and outdoor activities. Because Vail Resorts are so close to Denver International Airport and Eagle County Regional Airport they are very accessible to all types of people. Destination guests are the secondary target market because they have to travel in order to get to Vail Resorts, as well as they usually only come maybe for 1 week out of the season, compared to the Front Range communities.
When I asked a stranger, whose name was Ryan Sellers, what he thought would be a secondary target market he said, I think that all of the people who live in Denver and the other areas in Colorado would be the secondary market because the resorts know that they will already have those people coming to the resorts, so they dont really need to market to them as much as the people that come from out of town.
After hearing Ryans response to my question I could see his point of view, which would seem to make sense because most of the people who live in Colorado already know what the resorts have to offer so they dont need travel incentives to come to the resorts. When I finished thinking about this assignment and doing the research Ive realized that even though the annual report of Vail Resorts states who their primary and secondary target markets are, when asking people they will all have a different opinion on who they believe are the primary and secondary target markets.
“2007 Annual Report.” Vail Resorts. Oct. 2007. 27 Apr. 2008 .
Pagels, Rachael. Personal interview. 27 Apr. 2008.
“Resort.” Wikipedia. 28 Apr. 2008. 27 Apr. 2008 .
Sellers, Ryan. Personal interview. 27 Apr. 2008.