1. Problem definition
Blue Mountain Resorts were first built in 1941, and it is the largest family-operated ski resort in Canada. The major problem in this case is that the CEO of the Blue Mountain Resorts has to decide whether to install facilitates or not for the night skiing in 1979-1980 winter skiing season. Maintaining comfortable capacity at ski resort is very important in this field of market. The capacity depends on the hill size, hill development, and lift facilities. Therefore, to provide the night skiing service, investing in hills and lifts are important factors. So, if the CEO decides to install the night skiing facilities, he needs to decide the price of the single-night lift ticket and season passes so that he could calculate the profits. For given surveyed questions, he also has to decide to which extent of the forecasted data in survey will be realized since people often inaccurately optimize their behaviour for the future.
The management wants to offer the skiers the highest quality and best value for their money, so the CEO also wants to provide better facilities than the competitors by lighting the entire slope so that the company could offer longest run, highest vertical and best snow conditions for night skiing in Southern Ontario.
2. Alternatives
The company could either invest in facilitates for night skiing or not. There are some considerations to undertake the project in the resort, and at least one of the conditions should be met. The conditions are; the new project offers new opportunities, helps to attain off-season use of facilities, expands primary earning power, and protects current earning power and minimizes risks. Investing in facilities in night skiing met this conditions because facilitates used in night time can be even used when off-season by holding other recreational events or social activities at night. Once the facilities are constructed, the maintenance and operating fee