The ski business, like so many other industries, has been transformed over the past two years by subscriptions.

Instead of buying lift tickets à la carte, the model has changed dramatically thanks to two ski passes: the Ikon Pass from the Alterra Mountain Group and the Epic Pass from Vail Resorts (MTN).

Both Alterra and Vail have been gobbling up or partnering with resorts in the past few years, breaking all the traditional norms in the ski industry. Today, instead of buying a single-mountain’s pass, many skiers opt to spend $1,099 on an Ikon Pass or $989 for an Epic Pass that provide a buffet of dozens of resorts to choose from. (Vail is public and profitable, and though Alterra is private and doesn’t release financials, it says it’s profitable.)

The subscription passes have attracted tons of skiers based on their value. In the past, breaking even was only possible for the most dedicated of skiers, after about 30 days buying day tickets.

“That’s the big change,” says Rusty Gregory, Alterra’s CEO. “Now passes break even within four to six days. If you’re going to ski a few days, that’s a great value proposition.”

Today, 40% of skiers have passes, whereas traditionally, the number was 30%, and the vast majority of Ikon Pass holders break even, Gregory says. “Someone got 110 days in at our resorts last year, and there was a few over 100. Some really get it down to a small cost per visit, which is great.”

The companies track usage copiously, thanks to the RFID features in passes, and communicate the data to the individual mountains, helping them to tailor their offerings and to figure out what to improve and what to invest in.

A ski pass is not Movie Pass

This industry is the polar opposite of the Movie Pass idea, since it doesn’t use an insurance-like business model where premiums or subscription fees are pooled to buy the services, with the middleman hoping people don’t use it. Gregory says the company tries to get people to ski as much as possible: the revenue split is 50/50 between hospitality and tickets.

There’s been an especially pronounced effect on consumer behavior thanks to the wide array of offerings. When Alterra is deciding which mountains to buy or partner with, the company sorts the mountain into three tiers: local, regional, and aspirational. Local mountains are often smaller but with a dedicated crowd of skiers; regional mountains are ones that people might drive to for a long weekend; and aspirational mountains are resorts that are worth a plane ride.

“The big change is the fact that it’s driven a propensity to travel with our consumers,” says Gregory. Going forward, the company is looking to fill the geographic gaps near big population centers.