Alterra Mountain Company and Affirm Expand Exclusive Partnership to Bring Payment Flexibility to More Skiers & Riders

Rhea-AI Summary

Affirm (NASDAQ: AFRM) announced an expanded partnership with Alterra Mountain Company, enabling more payment flexibility for consumers across the U.S. and Canada. This collaboration extends Affirm's services to all Alterra destinations, including the Ikon Pass and other local offerings like lodging and lessons. Approved consumers can split their purchases into monthly payments, with options as low as 0% APR and no hidden fees. This strategic move aims to enhance the purchase experience and drive sales, average order value, and repurchase rates.

Positive

• Expanded partnership to include Canadian destinations.
• Monthly payment options with 0% APR.
• No hidden or late fees for consumers.
• Potential for increased sales and average order value.
• Enhanced customer repurchase rates.
• Affirm is partnered with 292,000 retailers.

Negative

• No immediate financial figures disclosed to measure impact.
• Potential risks associated with consumer debt.

Insights

Financial Analyst

The expanded partnership between Affirm and Alterra Mountain Company extends Affirm's buy-now-pay-later (BNPL) services to all Alterra destinations in the US and newly in Canada. This will likely have several financial implications. Firstly, the increased accessibility of BNPL options could boost sales and revenue for both companies, as it lowers the immediate financial barrier for consumers. More travelers may opt for pricier packages, potentially increasing the average order value.

In the short term, the partnership might result in higher customer acquisition rates for Affirm, driving growth. For Alterra, this expansion could help in smoothing revenue streams, which is particularly beneficial for seasonal businesses. However, it's important to consider the possibility of increased default rates on payments, although Affirm's underwriting model aims to mitigate such risks.

For investors, this expanded partnership can be seen as a strategic move to capitalize on the growing BNPL trend, which has seen significant adoption post-pandemic. Nonetheless, they should be aware of potential regulatory scrutiny surrounding BNPL services in the future. Overall, this is a positive development for both firms.

Market Research Analyst

From a market perspective, the expansion of Affirm's services into Canada allows the company to tap into a fresh customer base within the winter sports industry. This move is timely, as the BNPL market is projected to grow significantly over the next few years. Partnering with Alterra Mountain Company, a major player in the mountain resort industry, positions Affirm favorably to capture a segment of this growth.

Alterra gains from offering more flexible payment options, which can improve customer satisfaction and potentially boost loyalty. Consumers might find the ability to spread out payments over time particularly appealing in the current economic climate, where discretionary spending is under pressure.

In the long term, this partnership could serve as a model for similar collaborations in other sectors, allowing Affirm to diversify its portfolio. However, competitive pressures from other BNPL players like Afterpay and Klarna should be closely monitored.

Travel Industry Expert

Within the travel industry, this partnership highlights a shift towards more flexible payment solutions, catering to consumer demand for financial flexibility. The inclusion of lodging, lessons and local mountain passes in the BNPL options makes it easier for a broader audience to engage in winter sports, potentially democratizing access to typically high-cost recreational activities.

This expansion is not just a financial maneuver but also a customer experience enhancement. Travelers planning trips to Alterra's destinations are likely to appreciate the transparency and lack of hidden fees in Affirm's model, which aligns with growing consumer expectations for honesty and simplicity in financial products. Additionally, the extended reach into Canada opens new markets, which can help both companies hedge against regional economic downturns.

While this offers immediate benefits, it also sets the stage for longer-term customer relationship building. Providing a seamless and flexible payment process could convert one-time visitors into lifelong customers.

The expanded partnership brings Affirm to all Alterra destinations in the US and now also in Canada

SAN FRANCISCO--(BUSINESS WIRE)-- Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, today announced an expanded partnership with Alterra Mountain Company, a family of iconic year-round mountain destinations, including the world’s largest heli-skiing operation, and the owner of Ikon Pass. Eligible travelers will be able to pay over time with Affirm when purchasing an Ikon Pass in the U.S. and for the first time, also in Canada, plus local mountain passes, lodging, and lessons when traveling to any of Alterra’s destinations across North America.

By selecting Affirm at checkout, approved consumers can split purchases into monthly payments, for as low as 0% APR, making Affirm available across a wider variety of booking options following the success of the partnership to date. Consumers are shown the total cost of their purchase and will never pay more than they agree to upfront. Affirm never charges customers any late or hidden fees.

“We are continually looking at ways to enhance the purchase experience for our pass holders and destination guests, and Affirm offers flexibility and choice when looking to plan their winter adventures,” said Matt Bowers, Senior Vice President, Alterra Mountain Company.

“We are proud to deliver increased payment flexibility for Alterra Mountain Company consumers, including those purchasing an Ikon Pass or those seeking lodging, lessons, and more across Alterra’s iconic destinations,” said Pat Suh, SVP of Revenue at Affirm. “This expanded partnership positions us to drive even more value as we unlock a wider range of transactions and make Affirm available to even more skiers and riders across the U.S. and Canada.”

Alterra Mountain Company is one of 292,000 Affirm retail partners, including Amazon, American Airlines, Casper, Newegg, SeatGeek, Royal Caribbean, Priceline, and more. Offering Affirm at checkout can drive overall sales, increase average order value, and increase customer repurchase rates.

About Affirm

Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network – one based on trust, transparency and putting people first – we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we show consumers exactly what they will pay up front, never increase that amount, and never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.

About Alterra Mountain Company

Alterra Mountain Company is a family of iconic year-round mountain destinations, the world’s largest heli-skiing operation, and Ikon Pass - the premier ski and snowboard season pass offering access to more than 50 iconic mountain destinations around the world. Headquartered in Denver, Colorado and born out of a shared love of the mountains and adventure, the company has brought together some of the world’s most aspirational brands, including: Steamboat and Winter Park in Colorado; Palisades Tahoe, Mammoth Mountain, June Mountain, Big Bear Mountain Resort and Snow Valley in California; Stratton Mountain and Sugarbush Resort in Vermont; Snowshoe Mountain in West Virginia; Tremblant in Quebec and Blue Mountain in Ontario, Canada; Crystal Mountain in Washington; Schweitzer in Idaho; Deer Valley Resort and Solitude Mountain Resort in Utah; CMH Heli-Skiing & Summer Adventures and Mike Wiegele Helicopter Skiing in British Columbia. Also included in the portfolio is Alpine Aerotech, a worldwide helicopter support and maintenance service center in British Columbia, Canada, Aspenware, the ski industry leader in technology services and e-commerce, and Ski Butlers, the global leader in ski and snowboard rental delivery. For more information, please visit https://www.alterramtn.co/.

About Ikon Pass

The Ikon Pass welcomes skiers and riders to a community of inspiring mountain destinations and the people who live and play among them across the Americas, Europe, Australia, New Zealand, and Japan. Brought to you by Alterra Mountain Company, the Ikon Pass unlocks adventure at iconic and unique destinations including Aspen Snowmass, Steamboat, Winter Park, Copper Mountain Resort, Arapahoe Basin, and Eldora Mountain Resort in Colorado; Palisades Tahoe, Mammoth Mountain, June Mountain and Big Bear Mountain Resort and Snow Valley in California; Jackson Hole Mountain Resort in Wyoming; Big Sky Resort in Montana; Alyeska Resort in Alaska, Stratton, Sugarbush Resort, and Killington in Vermont; Windham Mountain in New York; Snowshoe in West Virginia; The Highlands and Boyne Mountain in Michigan; Crystal Mountain and The Summit at Snoqualmie in Washington; Mt. Bachelor in Oregon; Sun Valley and Schweitzer in Idaho; Tremblant in Quebec and Blue Mountain in Ontario, Canada; SkiBig3 in Alberta, Canada; Revelstoke Mountain Resort, RED Mountain, Cypress Mountain, Panorama Mountain Resort and Sun Peaks Resort in British Columbia, Canada; Sunday River and Sugarloaf in Maine; Loon Mountain in New Hampshire; Camelback Resort and Blue Mountain Resort in Pennsylvania, Taos Ski Valley, New Mexico; Deer Valley Resort, Solitude Mountain Resort, Brighton Resort, Alta Ski Area, Snowbird and Snowbasin in Utah; Chamonix Mont-Blanc Valley in France, Dolomiti Superski in Italy, Grandvalira Resorts Andorra in Andorra, Kitzbühel in Austria, Zermatt and St. Moritz in Switzerland; Thredbo and Mt Buller in Australia; Coronet Peak, The Remarkables, Mt Hutt in New Zealand; Niseko United and Lotte Arai Resort in Japan, and Valle Nevado in Chile. Special offers are available at CMH Heli-Skiing & Summer Adventures, the world’s largest heli-skiing and heli-accessed hiking operation. For more information, please visit www.ikonpass.com.

Rates from 0-36% APR. Payment options through Affirm are subject to eligibility, may not be available everywhere, and are provided by these lending partners in the U.S.: affirm.com/lenders. Options depend on your purchase amount, and a down payment may be required. For licenses and disclosures, see affirm.com/licenses. In Canada, other terms may apply.

AFRM-F

View source version on businesswire.com: https://www.businesswire.com/news/home/20240605880168/en/

Press

Alterra Mountain Company

Amelie Bruzat

amelie@theashimagroup.com



Affirm

Alex Rafter

press@affirm.com

(650)398-2715

Source: Affirm

FAQ

What is the new partnership between Affirm and Alterra Mountain Company?

Affirm expanded its partnership with Alterra Mountain Company to offer payment flexibility across all U.S. and Canadian destinations.

How does Affirm benefit Alterra Mountain Company consumers?

Consumers can split purchases like Ikon Pass, lodging, and lessons into monthly payments with options as low as 0% APR and no hidden fees.

What are the financial terms of the Affirm and Alterra Mountain partnership?

No immediate financial terms were disclosed in the press release.

What impact does the expanded partnership have on Affirm's stock (AFRM)?

The partnership aims to increase sales, average order value, and customer repurchase rates, which could positively impact Affirm's stock.