Ski and Snowboard Rental Private Company Multiples and Valuation
Ski and Snowboard Rental: Navigating Market Trends, Private Company Multiples and Valuation.
Ski and Snowboard Rental
Industry: Ski and Snowboard Rental
Naics: 532284
Private Company Multiples
Industry Overview
The Ski Rental Shop industry has demonstrated remarkable resilience and growth in recent years, overcoming challenges posed by the COVID-19 pandemic and changing weather patterns. The industry has experienced significant expansion, with revenue growing at a CAGR of 5.7% to $294.2 million over the past five years, including an expected 3.2% increase in 2023. This growth reflects the industry's ability to adapt to changing market conditions and capitalize on increasing domestic and international travel.
Market Size and Projections
The U.S. ski rental market is projected to grow from $294.2 million in 2023 to $332.1 million by 2028, with a CAGR of 2.5%. This projection takes into account factors such as increasing domestic travel, rising disposable income, and the convenience of renting equipment for travelers and newcomers to the sport. The global ski equipment rental market is expected to reach $8.1 billion by 2031, growing at a CAGR of 6.7% from 2024 to 2031.
Workforce and Employment
The industry's growth suggests a positive trend in employment opportunities. The sector continues to attract workers, particularly in areas near ski resorts and during peak winter seasons. Many of these workers tend to be seasonal as the fall, spring, and summer months tend to be slower.
Industry Structure
The ski rental industry is closely linked to the ski and snowboard resorts industry, with rental shops typically operating near ski areas. The industry comprises a mix of independent rental shops and resort-operated rental services. While large resorts may dominate certain markets, there are opportunities for smaller, specialized rental businesses catering to niche segments or offering personalized services.
Future Outlook
The future outlook for the ski rental industry is bolstered by positive trends in skiing and snowboarding participation. Recent data shows significant growth in the number of participants:
- The total number of U.S. participants in snow sports activities exceeded 30 million in the 2023/24 winter season for the first time.
- Snowboarding saw the largest growth rate at approximately 9% in the 2023/24 season.
- The number of U.S. snowboarders reached approximately 8.98 million in 2023, the highest recorded since 2010.
- Nearly 10% of the U.S. population participated in skiing and snowboarding in 2019, indicating a solid fan base with potential for further expansion.
These trends suggest a growing market for ski rental services, particularly among younger age groups and diverse populations. The industry should prepare for increased demand and focus on catering to the preferences of these emerging winter sports enthusiasts.
How to Grow Your Ski Rental Business
Success in the ski rental industry hinges on more than just providing equipment. Rental shops should focus on:
- Investing in high-quality, diverse equipment inventory
- Implementing efficient online booking and management systems
- Offering exceptional customer service and expert advice
- Developing partnerships with local resorts and tourism agencies
- Expanding services to include lessons, guided tours, or specialized rentals
- Adapting to changing weather patterns with flexible rental options
- Creating a year-round rental business that includes equipment for various action sports, such as mountain biking and water sports
Key Financial Metrics
Income Statement Benchmark
