Interviewer view · keep this screen to yourself
Starter: Mont Albret: a ski resort's profit fell by more than half
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
Mont Albret, a ski resort in Quebec, saw its profit fall by more than half this season. The exhibit shows the last two seasons. Why did profit fall, and what should the resort do?
Format note: Difficulty: Starter. Format: interviewer-led, with an exhibit. Industry: Travel and leisure. Region: Canada. Interview length: about 25 minutes. The company is fictional and all figures are illustrative.
2. Answers to clarifying questions
Give these answers only if the candidate asks. If they ask something not listed, give a sensible answer or say it does not matter here.
If asked: Where is the resort, and what happened to the season?
Answer: It is in Quebec. Last season it opened for 120 days; this season warm spells cut it to 100 days (illustrative).
If asked: Did prices change?
Answer: Lift revenue per visit rose from CAD 60 to CAD 62. Spending on food and rentals stayed at CAD 25 a visit.
If asked: Which costs are fixed?
Answer: Lift staff, maintenance and insurance cost about CAD 16 million a year. Snowmaking is shown on its own line, and it rose this season.
3. The hypothesis a strong candidate states
Listen for an early, testable guess like this one. It does not need to match word for word.
Prices went up, so my hypothesis is that the fall comes from fewer skier visits in a short season, plus the cost of making more snow.
4. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- Profit = skier visits x contribution per visit - snowmaking - other fixed costs
- Key: Skier visits: days open x visits per day
- Spending per visit: lift tickets, food and rentals
- Snowmaking and other fixed costs
- Weather risk: season passes and summer activities
Exhibit 1
Reveal to candidate: when they ask for this data, say "Open Exhibit 1" (they press "Show exhibit 1" on their screen).
| Measure | Last season | This season |
|---|---|---|
| Days open | 120 | 100 |
| Skier visits | 400,000 | 340,000 |
| Lift revenue per visit (CAD) | 60 | 62 |
| Food and rental spending per visit (CAD) | 25 | 25 |
| Variable cost per visit (CAD) | 15 | 15 |
| Snowmaking cost (CAD millions) | 3 | 4.5 |
| Other fixed costs (CAD millions) | 16 | 16 |
So-what
Skiers came as often per open day as before, so the short season and the extra snowmaking explain the fall, not weaker demand.
5. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Contribution per visit, last season
What a strong candidate does: Lift revenue plus food and rentals, minus CAD 15 of variable cost per visit.
Contribution per visit last season (CAD): 60 + 25 - 15 = 70
Step 2: Contribution per visit, this season
What a strong candidate does: The same, with lift revenue at CAD 62.
Contribution per visit this season (CAD): 62 + 25 - 15 = 72
Step 3: Profit last season
What a strong candidate does: 400,000 visits, minus CAD 3 million of snowmaking and CAD 16 million of other fixed costs.
Profit last season (CAD): 400,000 × (60 + 25 - 15) - 3,000,000 - 16,000,000 = 9,000,000
Step 4: Profit this season
What a strong candidate does: 340,000 visits, with snowmaking up to CAD 4.5 million.
Profit this season (CAD): 340,000 × (62 + 25 - 15) - 4,500,000 - 16,000,000 = 3,980,000
Step 5: Effect of fewer visits
What a strong candidate does: 60,000 fewer visits at last season's CAD 70 each. Extra snowmaking cost another CAD 1.5 million, and the higher lift revenue added back CAD 680,000.
Effect of fewer visits (CAD): (340,000 - 400,000) × (60 + 25 - 15) = -4,200,000
Step 6: Visits per open day
What a strong candidate does: Last season it was 400,000 over 120 days, about 3,333 a day. This season:
Visits per open day this season: 340,000 ÷ 100 = 3,400
Step 7: Curveball: another short winter
What a strong candidate does: Interviewer: "Forecasters warn that next winter may be short too. How many visits does the resort need to cover this season's costs?"
Break-even visits a season: (4,500,000 + 16,000,000) ÷ (62 + 25 - 15) = 284,722
Step 8: Cash before the snow
What a strong candidate does: Interviewer: "Our research says 8,000 people would buy a season pass at CAD 600 if it went on sale in spring." Candidate: "That money arrives whatever the weather:"
Season pass sales (CAD): 8,000 × 600 = 4,800,000
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
Mont Albret should protect itself against short seasons rather than cut prices, because the fall came from the weather, not from weaker demand. First, profit fell from CAD 9 million to CAD 3.98 million: fewer visits cost CAD 4.2 million and extra snowmaking CAD 1.5 million. Second, skiers still came at about 3,400 a day, so each open day was as busy as before. Third, the resort now needs about 284,722 visits to break even, which leaves little room in another short winter. Sell season passes in spring: 8,000 at CAD 600 bring CAD 4.8 million before the first snow. Also spend on snowmaking where it adds the most open days, and test summer activities.
Risks a strong answer names: Warm winters may become more common, so short seasons repeat; Pass holders may ski less often than expected, so food and rental spending falls.
Next steps: Launch early season passes in spring for next winter; Rank snowmaking spending by the open days each project adds.
Strong versus weak
A strong answer
Split profit into visits, spending per visit and fixed costs, and saw that visits per open day held up. Then answered the weather risk with cash raised before the season.
A weak answer
Blamed the higher lift price for the fall and suggested cutting it, which would lower profit without bringing back the lost days.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
Total
0 out of 25
Score all five criteria to see the band and the feedback template.
Next: another case in Partner mode
Swap roles and run the next case, so you both practise answering and scoring.