Vail Resorts Benefits From Higher Prices, Good Early Season Weather

As the winter season approaches, Vail Resorts, the world's leading mountain resort operator, is poised to benefit from a combination of higher prices and favorable early season weather. The company's strategic pricing strategy and the positive impact of early snowfall have set the stage for a strong start to the ski season.

Vail Resorts' decision to raise prices for its Epic Pass, which offers unlimited access to the company's resorts, has proven to be a savvy move. Despite initial resistance, the pass has seen a 2% decline in units sold but a 4% increase in sales dollars. This indicates that guests are willing to pay more for the convenience and flexibility it offers. The company's focus on enhancing the guest experience through investments in infrastructure and technology has further bolstered its appeal to destination guests.

The early season weather conditions have been favorable, with many resorts opening early and offering excellent terrain. This has led to a surge in skier visits and ancillary spending, such as dining, retail, and rentals. In 2021, early season snowfall resulted in a 20% increase in skier visits compared to the prior year. Ancillary spending per visit also surged, reaching $117 in 2020, up 11% from the previous year.

Vail Resorts' balanced portfolio of destination and regional resorts positions it well to capitalize on these trends. The company's strategic investments and acquisitions, such as the purchase of Andermatt-Sedrun, further strengthen its competitive position. With a strong start to the season and a focus on delivering consistent growth and value to investors, Vail Resorts is well-positioned to benefit from higher prices and good early season weather.