Reflecting on the changing ski industry

Rob Kautz has spent nearly 40 years at Sugar Bowl, with the last 27 years as its CEO. Following his recent retirement, Kautz sat down with Tahoe Powder to discuss the future of skiing in Tahoe and particularly at Sugar Bowl, one of the region’s iconic ski areas that opened in 1939.

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Kautz says that in his decades of experience he has seen the ski industry change from what California’s early ski pioneers first envisioned, evolving into the modern ski resort.

“As the Tahoe ski areas have become more corporate, consolidation and economies of scale have become more important,” he said.

Kautz has posed the question over and over again, “Can a medium-sized, independently owned ski resort survive in the corporate ski world?” He says, “Yes.”

“Sugar Bowl owners are all about skiing; they are passionate and looking for a ski experience. They are still looking to make money and that’s about being a very good business operation,” said Kautz.

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Sugar Bowl is one of the region’s iconic ski resorts, opening in 1939. Pictured here is the resort’s first chairlift, Disney, so named for Walt Disney, one of the resort’s original investors. | Courtesy Sugar Bowl

“In order to compete in the industry we need to forge strategic alliances. It is the key to success,” Kautz explained. Sugar Bowl has not only partnered with Squaw Valley to offer value-added benefits to passholders, but has also joined with Sun Valley and Grand Targhee and plans to continue those partnerships.

“We are in a new world in the industry,” Kautz offered.

“There is a sea change in the ski business. Fixed grip lifts to high capacity lifts, which are three times faster then conventional chairs, increased and better snow surface has changed dramatically with old rollers to tillers, to sophisticated grooming machines that can groom steeper terrain, and the changes in technology with improved ski equipment.

“People are skiing well into their 70s and 80s these days. Skiing off-piste used to be impossible and now with camber skis it’s possible for intermediate skiers to get off-piste.”

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Kautz attributes much of Sugar Bowl’s success and future to broader appeal and longevity of skiers and boarders. He reminds us that 40 years ago the term corduroy didn’t exist.

The philosophy at Sugar Bowl on snow days when most people are looking for powder is that they don’t groom all of their runs on storm days.

“We provide groomed runs for everyone, but on storm days we make more runs available for powder days,” he says.

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Skiers enjoy a powder day at Sugar Bowl on terrain on Crow’s Peak. The resort opened the Crow’s Peak lift in 2014, adding an additional 1,000 feet of top-to-bottom skiing giving access to more back country that the resort is renowned for. | Grant Barta, Sugar Bowl

Meeting the needs of the future
When Sugar Bowl opened the Judah Lodge in 1994 and expanded its services to day skiers, this offered more intermediate terrain and opened the mountain to all levels of skiers.

The big investments have paid off. Since 1998, Sugar Bowl has invested more than $60 million in upgrades and amenities. The resort currently spins seven chairlifts and opened Crow’s Peak in 2014, adding an additional 1,000 feet of top-to-bottom skiing giving access to more back country that the resort is renowned for.

“It’s all about state-of-the-art awesome skiing,” Kautz says. “We’re the closets major resort coming from the West. Eighty-five percent of Sugar Bowl skiers are from the Sacramento and Bay Area.”

Needless to say, the recent drought has impacted and stressed many Tahoe resorts. But Kautz believes it will change. He studied the records kept by the Central Pacific railroad since 1870 and says that over 140 years there have been other periods of drought. He thinks of himself as a glass-half-full kind of guy. The weather in Tahoe is cyclical.

“There have been numerous periods where droughts lasted four to six years and that is not uncommon to California. We’ve been fortunate in the last 40 years not to have had more droughts,” said Kautz.

Back-country skiers growing market
Sugar Bowl is one of the only ski resorts in the Tahoe area with an open boundary policy offering some of the best back-country access. (See feature on Page 10.)

“Alpine Skills International is an incredible partner and offers a phenomenal back-country ski experience. We are all about skiing and boarding,” Kautz says. ASI offers back-country training, clinics and guided tours out of the ski resort.

One of the key elements to the future of skiing is back-country skiing, says John Monson, director of marketing at Sugar Bowl. The sales of back-country ski equipment has increased over the last few years, with Snowsports Industries America reporting a 12 percent growth in the sales of back-country skiing accessories in the last year alone. SIA reports that sales of back-country gear have been steadily increasing over the past five years. Recognizing the growing user segment, Sugar Bowl offers educational programs to help facilitate the back-country ski experience.

“Back-country gear represents the No. 1 growth category in retail sales, and Sugar Bowl provides the ideal resort to try it all out. We have fantastic in-bounds skiing and riding coupled with an open boundary policy for unrivaled back-country access, Tahoe’s only in-bounds uphill skinning program, and a dedicated Backcountry Adventure Center focused on education and survival skills,” Monson says.

For Sugar Bowl, Kautz says that the future of skiing lies in its continued focus on the alpine experience.

“We focus on skiing, education, cross-country skiing and back-country skiing. If you are a serious outdoor enthusiast, we have what you are looking for. We are not about shopping. We have a idyllic mountain village and look to enhance that experience,” Kautz said.