Growth strategy & goals
Skistar's future plans to 2030
In recent years SkiStar has transformed from being a winter company with a focus on lift and piste, to a company that creates memorable mountain experiences all year round. We are now taking an important step in our growth journey as we concretize our vision for the future.
SkiStar plans to further develop the company's mountain facilities in Sweden and Norway, including through brand new ski areas in Vemdalen and Hemsedal as well as new lifts in Åre, Sälen and Trysil.
Transformational Journey
In recent years SkiStar has transformed from being a winter company with a focus on lift and piste, to a company that creates memorable mountain experiences all year round. We are now taking an important step in our growth journey as we concretize our vision for the future.
SkiStar plans to further develop the company's mountain facilities in Sweden and Norway, including through brand new ski areas in Vemdalen and Hemsedal as well as new lifts in Åre, Sälen and Trysil.
Sälen
In Lindvallen, the plan is to develop, among other things, the lift and piste area around Söderåsen and at Experium. At Norrbackarna in eastern Tandådalen there are plans to develop a new area with lifts, descents and accommodation and next to Trolldalen in Hundfjället there are sketches of several new lifts and descents.
Trysil
In Trysil there are plans for a new lift from Eventyr to Hesten and both at the Radisson Mountain resort hotel in Fageråsen and in Vihammer Forest there are plans for a new lift.
Hemsedal
In Hemsedal, a new six-chair lift is planned from SkiStar Lodge and the development of a brand new ski area, Røggelia. The new area will double the destination's capacity. In addition, a new lift is planned at Sentrumløypa, which will connect Hemsedal center with the ski area.
Vemdalen
In Klyftberget there are plans for a brand new ski area directly adjacent to Skalspass in Vemdalsskalet. In addition, they want to develop another new area in Vemdalsskalet, Hovde Syd, with new descents and lifts.
Åre
In central Åre it is planned to replace the cableway with a Skutgondola and in the high zone it is planned for a replacement of the previous 1000-metre lift. There are plans to also develop more lifts in Sadeln to connect Åre Björnen with central Åre and west of VM8 the plan is a new six-chair lift and to develop more lifts and descents in Rödkullen. There are also plans for new housing opportunities so that more people will have the opportunity to live near the lift and slopes, including through a new lodge at VM8.
A multifaceted segment encompassing a range of services and products from ski passes, accommodation, and equipment rental to ski schools, retail operations, property services, and adventure sports.
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Growth strategy
A key feature of efforts to develop SkiStar from purely a winter and lift company to a mountain tourism company all year round with a focus on guests is the updated strategic plan elaborated within the strategic framework.
These efforts are based in part on shifting travel patterns, new holiday habits year-round with a focus on activities together with friends and family in Scandinavia, and in part on greater demand among guests for all-in mountain experiences whereby quality accommodation is playing an increasingly important role, together with modern, weatherproofed skiing areas with a focus on alpine skiing.
In 2020/21 we therefore updated our strategic framework, developing our vision and more concrete targets and strategies. Our previous six strategies were transformed into five. To achieve our goals and strengthen our position as the leading holiday organiser for Scandinavia, we need to further develop our core operations, find more sources of income, manage sustainable property transactions, meet customers where they want to be and create future business. Our foundations permeate everything we do. Safe and Secure is our promise to guests, as is sustainability, together with our employees and culture, which are a prerequisite today for achieving success and results.
Further develop core operations
To strengthen our position as the leading holiday organiser for Scandinavia, alpine skiing will remain SkiStar’s main focus when creating memorable mountain experiences. During the financial year, we continued to invest even more in the summer and autumn seasons, thus creating new sources of revenue. To increase the number of skier and activity days and thus boost revenues, the key is to attract more guests to our destinations who are more satisfied with their experience and more guests who return year after year. Another important aspect is to strengthen the competitiveness of the destinations, with important factors such as the range of products, development of ski systems, summer activities and offering guests better accommodation while away than at home. As people’s lifestyles and holiday habits are shifting, with them moving in recent years towards more active holidays spread over different periods of the year, work is under way to review how we can meet demand for adapted opening times, lift-assisted summer activities and guaranteed snow. At the same time, we are continuing to make investments in our mountain resorts, such as new lifts and skiing areas with plans to implement several new lifts to weatherproof and windproof Åre.
Find more sources of revenue
SkiStar wants to be at the cutting edge and further develop operations with a focus on increasing the number of guests and activity days at our destinations and driving sustained profitable growth. Sales of our SkiPassare at the heart of our revenue. Based on that successful product, we have since developed new revenue sources in the form of ski rentals through SkiStarshop, our snowman Valle and Valle's Ski School, the SkiStar Living accommodation concept and much more. Another important part of finding new sources of revenue is to even more efficiently base our actions on guests’ behaviours, purchasing patterns, satisfaction and preferences through the customer data we have from skistar.com and guest surveys, but also through memberships in SkiStar Member, using an updated strategy and development programme. By linking our sustainability target of seven million skier and activity days to the new SkiStar Member (as each skier day or activity day will give entitlement to a bonus), we are linking our guests and members closer to our sustainability targets within ‘activity and recreation’. Guests also receive all the benefits of being both loyal guests and members over time, such as bonus points on all purchases in the SkiStarshop, be it in physical stores or online, as well as on bookings and rentals via skistar.com. To put it simply – it should pay to be active.
Sustainable property transactions
For SkiStar, it is important for all land exploitation and property development in the Scandinavian mountain world to be sustainable. An important goal for us is to see a positive performance in the value of our exploitable land. This is achieved by active detailed development plans, which lead to new projects being launched more quickly. Another vital aspect of the strategy is to ensure a strong performance in the value of the property portfolio by developing and enhancing the efficiency of properties owned by SkiStar, not least in terms of energy efficiency and systematic maintenance.
Digitalising the user experience
For SkiStar, digitalisation means developing our destinations and digital platforms based on customer insight and data analysis with the concepts of simplicity, satisfaction, accessibility and the safety of our guests serving as a guide. Over the past year, SkiStar has continued to develop a number of products and services – everything from the SkiStar app to digital check-in and check-out at our accommodation. The Valle app is being developed into a ‘digiphysical’ tool as part of our efforts to give more children a sense of adventure and a love of the great outdoors. Digital business development will continue over the coming years with a focus on further guest-centric adjustments. It is a question of being at the forefront of digital interaction with guests, to create a memorable and carefree alpine experience before, during and after their trip.
Creating future business
Based on our brand and existing assets, we identify, analyse and generate future business through ongoing business development, thus reinforcing and intensifying our pace of innovation. The pace of development was high during the year, not least relating to the all-year-round initiative, with more attractions being developed for the summer season, including the new adventure arenas in Trysil, Sälen and Vemdalen.
A multifaceted segment encompassing a range of services and products from ski passes, accommodation, and equipment rental to ski schools, retail operations, property services, and adventure sports.
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Financial targets
The overall goal is for the value of shareholders’ capital to increase sustainably over the long term.
SkiStar updated its financial targets & dividend policy on 12 October 2023. Press release.
Updated mid-term financial targets
SkiStar’s Board of Directors has adopted the following financial targets:
Growth:Operating income should increase on average by 6 percent annually over this period. This refers to organic growth adjusted for acquisitions and currency effects. An acquired company is classified as an acquisition during the initial twelve-month period after the acquisition date. Only after this period has passed is the company included in the calculation of organic growth.
Margin:On average, the operating margin should be 18 percent. This updated target takes into account the changes to the accounting practices relating to mediated accommodation revenue that the company implemented in the second quarter of 2020/21. The previous margin target was to exceed 22 percent. The change to the margin target is fully explained by the accounting change. In addition, the company's operations have changed since the previous target was established, primarily in terms of hotel operations having a lower margin than the average.
Debt structure:Interest-bearing net debt should be less than 2.5 x EBITDA, excluding IFRS 16 effects. Temporary deviations might occur, but must not exceed 2.5x over the period.
A more flexible dividend policyThe Board has further decided upon an updated dividend policy. The target is that 40-60 percent of the year's profit after tax should be distributed to the shareholders. The dividend level proposed by the Board will be adjusted annually, taking into account the company's strategy, financial position, risk level and investment needs.
SkiStar's strategic climate target initiatives
SkiStar aims to protect nature, just as nature protects us. Through ambitious climate targets and the establishment of more circular systems, we are working to reduce our impact and enable our guests to make climate-smart choices. By 2030 we will reduce our total carbon footprint by 50 percent, in line with the target for the Sustainable Development Goals and the Paris Agreement’s limit on a global temperature increase of under two degrees.
A multifaceted segment encompassing a range of services and products from ski passes, accommodation, and equipment rental to ski schools, retail operations, property services, and adventure sports.
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