answer a questions
soosa
BusinessCase3.pptxImplementing RFID Ski lift Gates at Mount Tremblant Ski Resort
Timothy Groszkowski
MIS303, Summer 2020
Current Problem
Ski resort lift lines are long due to manual scanning of lift passes.
Lack of additional business due to slow lift line scanning
Need to have several employees at each lift location to manually scan visitors passes
Current ski passes are difficult to control fraudulent passes
No online information available
Solution: Install RFID (radio-frequency identification) Ski lift gates.
Increases Resort Revenue
Maximize lift ticket revenue by making sure all skiers and boarders pay to use your lifts
Reduces Lift Line Labor and use your manpower in more effective ways instead of manually checking or scanning lift tickets.
With gate attendants no longer focused on ski ticket verification, they can now focus on skier safety during lift loading
What is RFID?
RFID technology uses radio waves to identify and track tags attached to objects. A reader captures digital data encoded in the tags and relays this information to a networked system.
Unlike a barcode, the tag need not be within the sight line of the reader/optical scanner, which is a big advantage with this technology. Skiers hate long lift line-ups, having to stop and pull out a printed barcode pass, wait for the operator to scan and then finally head up for the next run.
Instead, the credit-card-sized RFID pass fits nicely into that little zippered pocket sewn onto the upper left arm side of all European-made ski jackets and is immediately recognized by the lift system. If the pass is valid, the entry gate opens. No scan gun pointed at guests, no taking off gloves and fumbling for printed passes and no delays getting back up on the hill.
Benefits:
Speed and convenience: skiers are very happy because they’re able to get through the gates quicker than they ever could before
RFID deliver online purchasing of tickets and passes- and reload through e-system. no need to get a new card- Increased Sales!
North American ski resorts are seeing reload rates in the high 60 to 70 percent ranges (snowopsmag.com)
Keeping track: Protects against fraud, Tracks usages. Ski information available online including Destination management
RFID Technology offers marketing and sales capability- Can link their RFID Account to their credit card for additional purchases. Will increase sales throughout resort!
5-RFID Gate Stations Required
Initial Investment
Cost For 5 Ski Gates $75,000.00
New RFID Ski Gate (each) $15,000.00 RFID Gates Yearly Maintenance $5,000.00
Lift Employee Hourly Pay Rate $15.00 /hr.
Each Employee Seasonal Cost $14,400.00 Weekly Pay each emp. $ 600.00
Total Labor savings-5 fewer emp. 24 wks $72,000.00 Total Weekly Payroll $3,000.00
Current Yearly Profit $3,015,000.00
Profit with 5 fewer employees $3,087,000.00
Estimated Year 1 Sales Revenue Increase due to RFID (1%) $30,150.00
Estimated Year 2 Sales Revenue Increase due to RFID (2%) $61,740.00
Estimated Year 3 Sales Revenue Increase due to RFID (3%) $92,610.00
Payback & Return On Investment (ROI)
Year 1 Year 2 Year 3
RFID Gate Cost $(75,000.00) $(5,000.00) $(5,000.00)
Projected Sales Increase $30,150.00 $61,740.00 $92,610.00
Total Profit $3,042,150.00 $3,143,740.00 $3,174,610.00
$ Increase $27,150.00 $56,740.00 $87,610.00
Percent Increase 0.89% 1.80% 2.76%
Year 1 Weekly Sales Revenue Increase $1,256.25
Year 1- Total savings per week $4,256.25
RFID Gate Payback 17.62 Weeks
RECAP:
Increased Sales: (Lift Tickets, Merchandise, Food and Drink)
Quicker lift lines = Happy Riders!
Fewer employees required.
Increased Safety
Online Tracking & Reduced Fraud
Quick Payback! Less than 18 Weeks!
