Understanding the New Market: NSAA’s Millennial Study

2015 ISKINY – PSAA Expo Lake Placid Conference Center September 22nd, 2015 Before we begin, some ground rules. Don’t Confuse Societal Trends with Generational Trends Don’t Life Stage Differences for with Generational Differences And remember, this is more about us than them What’s all the fuss? The Birth of the Teenager in the 20th Century The 21st Century Brings the Concept of the “Emerging Adult”

Five Milestones: • Completing School • Leaving Home • Becoming Financially Independent • Marrying • Having a Child

In the recent past the majority had hit all of these goals by age 30, today very few have reached these goals by age 30, nor would some find it desirable to do so. Millennials: • Born after 1980. • Currently age 35 and under. • 18-35 year olds are 24.5% of population. Size of Age Range in 2004 vs. 2014 30 2004 Over 9M more people 25.5 25 2014 in this age category 23.0 than in 2004 21.7

20 17.9 17.9 15.9 15 12.4 13.2

10 Population (in (in millions) Population 5

0 18 to 20 21 to 24 25 to 29 30 to 35 Age Range: Size of Cohort Accounted for by Age Group and Percent Non- White, Non-hispanic within Age Group: 2014

50% 50% 44% 44% 45% 43% 42% 45%

40% 40% Percent of Current Cohort 35% Percent Non-White or Hispanic 33% 35% 30% 28% 30% Waiting for 2042 25% 23% 25%

20% 20%

17%

Percent Minority Percent Percent of Cohort of Percent 15% 15%

10% 10%

5% 5%

0% 0% 18 to 20 21 to 24 25 to 29 30 to 35 Age Group: Percent of Total Population in 2014 9% 8.0% 8% Overall 24.5% of Total U.S. Population

7% A sizable chunk 6.8% are hitting family 6% building years. 5.6% 5% 4.1% 4%

3%

2%

Percent of Total U.S. Population in 2014 in Population U.S. Total of Percent 1%

0% 18 to 20 21 to 24 25 to 29 30 to 35 Age Group: Some General Observations that Hold Up: Key Findings from Neilsen’s 2014 “Millennials – Breaking the Myths” Report

• Diverse, Expressive and Optimistic

• Driving a Social Movement Back to the Cities

• Struggling, But They Have an Entrepreneurial Spirit Some General Observations that Hold Up: Key Findings from Neilsen’s 2014 “Millennials – Breaking the Myths” Report

• Deal Shoppers and Desire Authenticity

• Connected and Want the Personal Touch

Link to the full report: http://www.nielsen.com/us/en/insights/reports/2014/millennials-breaking-the-myths.html Top Markets for Millennials vs. Boomers Greater Concentration of Millennials in the Western U.S. Wealth (Income Producing Assets) by Generation

Over 70% of high net worth individuals are baby boomers or silent generation. Top Markets for Wealthy Millennials vs. Boomers

The geography of wealth shows fewer age differences. Hold on, why do we care again? Number of Active Snowsports Participants by Age Cohort: 1996/97 to 2014/15 5,000 Millenials (15-33) Gen X (34-49) BB2 (50-59) BB1 (60-69) 4,500 Pre-boom (70+) 4,116 4,000

3,284 3,500 3,095 3,000

2,500 1,942 2,000

1,563 1,305 1,500 1,420

1,000 Number ofActive Participants thousands) (in 511 553 500 126 -

Season No significant change in the number of Millennials or Gen X participants in 6 seasons. Average Total Number of Days Skied/Snowboarded by Cohort: 1996/97 to 2014/15

Millenials (15-33) Gen X (34-49) BB2 (50-59) BB1 (60-69) 10.6 11.0 Pre-boom (70+) TOTAL

9.8 10.0 9.4 9.5 9.3 9.3 9.1 9.2 9.1 9.2 9.2 9.1 9.0 8.9 9.0 8.9 8.7 9.0 8.5 8.6 8.4 8.3 8.2 8.2 7.9 7.8 7.7 7.8 8.0 7.5 7.1 7.1 6.8 6.9 6.9 6.9 6.6 6.6 7.0 6.5 6.4 6.3 6.3 6.2 6.3 6.2 6.1 6.0 6.0 5.9 6.0 6.0 5.9 5.7 6.0 5.7 5.65.7 5.7 5.6 5.6 5.6 5.6 5.6 5.6 5.5 5.4 5.5 5.5 5.5 5.5 5.5 5.7 5.3 5.4 5.35.4 5.4 Average TotalDays Skied/Snowboarded 5.2 5.6 5.5 5.2 5.4 5.0 5.3 5.3 5.3 5.2 5.2 5.2 5.2 5.4 5.5 5.3 5.1 5.0 5.35.1 5.0 5.0 5.0 5.1 4.9 4.9 5.1 5.2 5.1 5.2 4.9 5.1 5.0 5.0 4.8 4.8 4.9 4.9 4.8 4.7 4.0

Season Millennials are / at significantly lower frequency than older generations. NSAA Millennial Study - 2015 A comprehensive examination on the state of the Millennial market in the U.S.

• Qualitative one-on-one interviews in select markets across the U.S.

• National in-depth surveys of both Millennial participants and non-participants, and families and singles.

NSAA Millennial Study – 2015 | n=2,215 Designed to provide statistically meaningful clusters of key potential visitor segments Key Respondent Characteristics by Snow Sports Status 70% Skier/Snowboarder 62% 60% Non-Skier/Snowboarder 57% 56% 50% 52% 50% 43% 40% 38% 38% 36% 34% 32% 30% 25% 21% Percent Responding Percent 20% 17% 14% 12% 9% 10% 5%

0% $150,000 $100,000 $50,000 Under Yes No 30 to 35 25 to 29 21 to 24 or above to to $50,000 $149,999 $99,999 What is your annual pre-tax household income? Children Present in Home? Age Group:

Millennials who currently tend to be more affluent and less likely to have kids. NSAA Millennial Study - 2015 Probed a variety of topics related to snow sports participation, travel, and demographics

Available Vacation Days by Age Group 40% 21 to 24 25 to 29 30 to 35 36% 35% 30% 30% 27% 26% 25% 24% 25% 25% 21% 20% 17% 18% 18%

15% 14% Percent Responding Percent

10% 8% 7%

5% 4%

0% None One week Two weeks Three weeks More than three weeks How many vacation days are you able to take during the calendar year? Vacation time available but among more affluent some reluctance to take it. NSAA Millennial Study - 2015 Also examined lifestyle and attitudinal information that could help craft meaningful strategies for outreach

Skier/Snowboarder Non-Skier/Snowboarder

Republican, Republican, 22.7% 26.0% Independent, Independent, 40.9% 45.3%

Democrat, Democrat, 32.0% 33.1%

Less affiliated with party politics than any generation. Percent Identifying with Descriptor (%8 through 10=Perfect Description of Me) by Participation in Skiing/Snowboarding

60% Skier/Snowboarder Not a Skier/Snowboarder 56%

49% 50% 50% 48% 47% 46% 43% 42% 41% 40% 39% 40% 36% 37% 32% 32% 31% 29% 28% 30% 27% 22% 20%

10% Percent Responding 8 to 10='Perfect Description Me' Description of 10='Perfect to 8 Percent Responding 0%

Source: 2015 NSAA Millennial Study

Millennial skiers are socially liberal, non-religious foodies with a concern for the environment. Profile: 27 year old Social media use… Employed Full time Profile: 24 year old Technology use… Employed Full time

Initial impressions of skiing from non- skiers/snowboarders Initial impressions of snowboarding from non- skiers/snowboarders Profile: 27 year old As a non-skier, what is your Employed Full time impression of skiing… Initial impressions of “resort” Initial impressions of “” Reaction to “resort”… If Child(ren) are of Age, Do They Ski or by Snow Sports Status 100%

90% 86% 79% 80% Yes No

70% If they have a past history 60% of skiing/snowboarding, 50% when they have kids we get that family. 40%

Percent Responding Percent 30% 21% 20% 14% 10%

0% Skier/Snowboarder Non-Skier/Snowboarder Age at Which Child Introduced to Skiing/Snowboarding

16% 15% Interested in starting their kids young. Avg.=8.1 14% 12% 12% 11% 11% 11% 11% 10%

8% 7% 6% 6% 6% 5% 4% Percent Responding Percent 4%

2%

0% 4 5 6 7 8 9 10 11 12 13 14 years years years years years years years years years years years old old old old old old old old old old old or older On What Type of Equipment Did You Start Them? by Parent's Primary Equipment Type 100% What type of equipment did you start them on? 90% 86% What type of equipment did you start them on? Snowboard 80%

70% Most are starting 68% 67% 60% their kids on skis.

50%

40% 32% 33% Percent Responding Percent 30%

20% 14% 10%

0% Skier Snowboarder Overall Parent's Primary Equipment Type Type of Equipment Child Uses Today by Type of Equipment First Used 100% 90% Skis Snowboard

80% 75% 75% 70% These flows across 60% sports would indicate that snowboarding has 50% a very leaky bucket. 40% 30% 25% Percent Respondingg Percent 25% 20% 10% 0% Skis Snowboard What type of equipment did you start them on? Do you think in the future you might consider introducing your children to downhill skiing or snowboarding? by Snow Sports Status 100% 100%

90% Yes No 80% 67% 70% Even non- 60% skiers/snowboard 50% ers are interested in potentially 40% introducing their 33% 30% kids to the sport

Percent Responding Percent 20% 10% 0% Skier/Snowboarder Non-Skier/Snowboarder Things that Might Prevent You from Introducing Your Child to Skiing/Snowboarding by Snow Sports Status 60%

Skier/Snowboarder 50% Non-Skier/Snowboarder 50% 49% 45%

40% 36%36% 34% 35% 32% 30% 29% 30% 30% 28% 25%

23% Percent Responding Percent 20% 19% 16% 16%

9% 10% 9% 4%

0% Cost of lessons Cost of Live too far Lack of interest Lack of Lack of time Cost of Not familiar Child's school Child's equipment away from a on the part of necessary transportation with resorts obligations participation in rental resort the child apparel/gear to the resort nearby organized sports Among current participants, lack of interest and time pressures are the big barriers. For non-participants, lack of gear and cost are big. Among those who don’t intend to introduce their child to skiing/snowboarding, what are some of the reasons why? Non- Skier/Snowboarder , 44% Skier/Snowboarder , 56% Profile: 29 year old How much to you ski/snowboard? Software Engineer What do you like most about skiing/snowboarding? Profile: 28 year old What do you like the most about Employed Full time skiing/snowboarding? What do you like least about skiing/snowboarding? Profile: 29 year old What about the sport resonates with you? Software Engineer Which of the Following Best Describes How You Spend Your Days Skiing/Snowboarding During a Typical Winter? by Income

50% Day trips to mostly the same resort 45% Day trips to multiple resorts 45% 41% Overnight trips to resorts close to where I live 40% 40% Overnight trips to resorts out of state from me 35% 35% 35% 32% 30% 29% 30% 30% 30%

25% 20% 20% 20% 17% 17% Percent REsponding Percent 15% 14% 15% 13% 13% 13% 11% 10%

5%

0% Under $50,000 $50,000 to $100,000 to $150,000 or Overall $99,999 $149,999 above

Destination travel out of state only really climbs at $100K+. Profile: 26 year old Regional vs. overnight… Consultant Percent Strongly Agreeing With Statement 60% 55% Resort loyalty is 50% low among this 45% cohort. 43% 40%

30% 24%

20% Percent Responding Percent

10%

0% I'm loyal to the resorts I I'm committed to I love introducing Friends/family ask my ski/snowboard skiing/snowboarding others to opinion about where to for life skiing/snowboarding go skiing/snowboarding Percent "Strongly Agree", "I'm committed to skiing/snowboarding for life" by Age and Presence of Children in Household 70% 63% 61% 60% 56% Presence of 50% 50% kids can diminish 42% 40% commitment levels. 30%

Percent Responding Percent 20%

10%

0% 21 to 25 26 to 29 30 to 35 No Kids Kids Level of Committment to Skiing/Snowboarding as a Lifelong Activity by Whether Dropped Out One or More Times Over Last Five Seasons 70% Yes No 60% 58% Dropping out for one season or more can 50% seriously reduce commitment levels.

40% 35% 29% 30% 28% 21% Percent Responding Percent 20% 12% 10% 8% 3% 3% 3% 0% Strongly Disagree Somewhat Disagree Neither Agree Nor Somewhat Agree Strongly Agree Disagree "I'm committed to skiing/snowboarding as a lifelong activity." Level of Committment to Skiing/Snowboarding as a Lifelong Activity by Whether or Not You Took a Lesson Your First Time Skiing/Snowboarding 70% 66% Yes No 61% 60% 57% 54% 50% 50% 50% 46% 43% 40% 39% 34%

30%

Percent Responding Percent 20%

10%

0% Strongly Disagree Somewhat Disagree Neither Agree Nor Somewhat Agree Strongly Agree Disagree "I'm committed to skiing/snowboarding as a lifelong activity."

Taking a lesson the first time correlates with increased commitment. Did You Introduce Any Friends to Skiing/Snowboarding this Winter by Whether or Not You Enjoy Doing So

100%

90% During this past winter (2014/15) did you introduce any friends to skiing or snowboarding? Yes

80% You might have brought a 70% 70% 62% friend, but you didn’t 60% necessarily like the experience. 55%

50%

40% 32% Percent Responding Percent 32% 30%

20%

10%

0% Strongly Disagree Somewhat Disagree Neither Agree Nor Somewhat Agree Strongly Agree Disagree I love introducing others to skiing/snowboarding Age When First Introduced to Skiing/Snowboarding 90% 82% 80% 18 or Under 79% 80% Collge 76% Post-College 70% 62% 60%

50%

40%

30% Percent Responding Percent

20%

10%

0% White, Non- White, Hispanic Non-White, Non- Non-White, Overall Hispanic Hispanic Hispanic Avg. = 13.1

Not everyone starts young, especially true for emerging markets. Percent Indicating They Introduced Themselves to Skiing/Snowboarding 25%

Significant number of non-whites 21% 20% introduce themselves to the sport. 18%

15%

10%

10% Percent Responding Percent

5% 4%

0% White, Non-Hispanic White, Hispanic Non-White, Non- Non-White, Hispanic Hispanic If Someone Else Introduced You, Who? 60% 55% Parents Siblings Friends A club/group/other

50% 47%

40% 36% 35%

30% 29% 30% 26% 25% 24% 19%

Percent Responding Percent 20%

13% 12% 10% 10% 9% 10% 3%

0% White, Non-Hispanic White, Hispanic Non-White, Non- Non-White, Hispanic Hispanic Only for white participants are parents the primary vector for exposure to the sport. Profile: 32 year old On unconventional trial… Professional Motives for Trial by Age of First Exposure 60% Tried Prior to 21 Tried at 21 or Older 50%

40%

30%

Percent Responding Percent 20%

10%

0% Profile: 25 year old On skiing/snowboarding as a prestige sport… Law student Information Sources Used to Plan Skiing/Snowboarding Trip

80% 72% 70% Word of mouth a key 60% 53% information source. 50% 44%

40% 34% 32% 30% 28% 30% 24% 19%

20% Percent Responding Percent 10% 8% 0% Profile: 34 year old What information sources do you use… Parent Percent Seeking Skiing/Snowboarding Destination Attribute by Gender 90% 84% 79% Male 80% 74% 71% Female 70% 70% 65% 66% 60% 57% 58% 53% 50% 50% 47% 43% 40% 37%

30% 28% Percent Responding Percent 20% 13% 10%

0%

Skiing/Snowboarding Destination Attribute Everyone is seeking economical destinations, but important gender differences. Dream Resort for Skiing/Snowboarding Trip by Age Group 18% 16% 16% 15% 21 to 24 25 to 29 30 to 35

14%

12% 12% 11% 10% 10% 9% 8% 8% 7% 7% 6% 6%

6% 5% 5% 5% Percent Responding Percent 4% 4%4% 4% 4% 4% 4% 3% 3% 3% 2% 2% 3% 2% 2% 1% 1%

0% Profile: 26 year old What are you looking for in a destination? Consultant Profile: 29 year old What are you looking for in a destination? Software Engineer Profile: 34 year old What are you looking for in a destination? Parent Top Ten Most Cited Negative Impacts on Frequency of Skiing/Snowboarding by Presence of Children in Household 45% 42%

40% No Children Children 35%

30% Beyond snow, cost of ticket/pass the most significant 25% 25% barrier to participation, especially for young families.

20% 14% 15% Percent Responding Percent 12% 11% 10% 10% 8% 6% 5% 4% 5% 4% 4% 4% 5% 3% 3% 3% 2% 2% 1% 0% Reasons friends cite for NOT skiing/snowboarding? Profile: 30 year old Why don’t your friends ski/snowboard… Software Engineer Overnight leisure/vacation trips taken during the winter of 2014/15 by Snow Sports Participation Status

52% Visit with family or friends 41%

7% Skiing/snowboarding vacation 67%

29% Beach destination 36%

34% City vacation 31%

23% Amusement park / theme park 16% For families, amusement park destinations a strong competitor Travel abroad 11% 20% for winter vacation time. 14% Casino trip 14% Historical/cultural vacation 10% 9% Not a Skier/Snowboarder 5% Cruise vacation 8% Skier/Snowboarder

7% Other tourist destination: 7%

0% 20% 40% 60% 80% Percent Responding Lodging Booking Method for Leisure Travel by Snow Sports Status 45% 42% Skier/Snowboarder Not a Skier/Snowboarder 40% 38%

35%

30% 28% OTAs dominate, but 26% AirBnB/VRBO prominent 25% 22% for more affluent. 20%

15%

Percent Responding Percent 12% 10% 7% 5% 4% 5% 4% 3% 3% 2% 1% 0% Online travel Directly with Not Tend not to Private party Travel Resort's agency hotel/lodge applicable - make website agent/tour Central typically stay advance (AirBnB, company Reservations with friends reservations VRBO) or family Booking Method: Profile: 29 year old How do you book your accommodations… Employed Full time Barriers that Prevent You From Trying Skiing/Snowboarding by Presence of Children in Household 35%

30% No Children Children

25%

20%

15%

Percent Responding Percent 10%

5%

0%

Fear of injury dominates as a reason for not trying the sport. What non-skiers/snowboarders think they might like. What non-skiers/snowboarders think they might dislike. Affordability of Skiing/Snowboarding Relative to Comparable Recreational Activities 90% 82% Skier/Snowboarder Not a Skier/Snowboarder 80%

70% 65% Most view 60% skiing/snowboarding as 50% more expensive than comparable activities. 40%

30% Percent Responding Percent 20% 20% 15% 15%

10% 8%

0% Less Affordable About the Same More Affordable Initial Conclusions

• This generation is far too important to be dealt with monolithically. • There are commonalities, but young families in their 30s are very different from singles in their 20s. • The parent’s past history of skiing/snowboarding doesn’t guarantee the children will take up the sport. • Appealing to young people who haven’t yet tried the sport has its challenges, but clear opportunities. • The communication method and message matter. • Which segment your area appeals to has a fair amount of specificity. • Don’t underestimate their sophistication or potential.