SAM Magazine—Broomfield, Colo., June 10, 2016—Vail Resorts (VR) saw net income rise to $157.6 million in its all-important third quarter, as visits jumped nearly 14 percent for the period. For the season overall, visits were up 18.2 percent from a year ago, to 9.7 million from 8.1 million. The company also reported very strong early season pass sales for 2016-17.

With the bulk of its business now done for the year, VR increased its fiscal 2016 EBITDA guidance to between $448 million and $454 million, with more than $300 million of that coming from the third quarter.

"We are very pleased with our performance in the quarter and for the entirety of the 2015-16 U.S. ski season. Our results continued to demonstrate the strength of our season pass products, the momentum we have created by drawing destination guests to our resorts through more sophisticated marketing efforts, and the benefit from good conditions throughout the season in each of our western resort areas,” said Rob Katz, VR CEO.

Season pass sales for 2016-17 were up approximately 29 percent in units and approximately 34 percent in dollars through May 31, compared with the prior year period ended June 2, 2015. Early sales for 2016-17 were roughly 50 percent of the total pass sales for 2015-16. VR cautioned that this record percentage pace will not continue, but noted that it shows many existing passholders chose to renew early, when prices were lowest. VR also nearly doubled its early pass sales from the Chicago area, following its purchase of Wilmot, Wis., last January.

Among the highlights:

Guest spending was strong across the business in the third quarter with ski school revenue increasing 12.2 percent, dining revenue increasing 15.9 percent, and ticket revenue up 17.4 percent compared to the same period in the prior year.

Katz termed the first season for the new Park City resort “a success” with results “in line with our ambitious expectations.” VR's Tahoe resorts rebounded from the previous year's drought and “achieved record revenue levels in all key business lines.” VR's Colorado areas saw “growth in visitation and revenue above our record prior year.”

VR experienced a modest decline in total international visitation compared to the prior year, as dollar exchange rates were unfavorable. But, Katz added, “We did see strong growth from Australia, reflecting the benefit of our recent Perisher acquisition.”

Katz continued, "We continued to see strong growth in our season pass program, with season pass revenue increasing 18.9 percent year-to-date through the third fiscal quarter, excluding Perisher, compared to the prior year period, and [that] represented approximately 41 percent of our total lift revenue.” Growth in pass sales came mostly from destination guests, he added.

Katz also credited this growth, in part, to an “improved ability to segment our guests and personalize our messages to them. We are also driving our guests' purchases through our own online distribution channels, providing our guests with the confidence that they are getting the best value and ensuring we maintain a strong relationship with them.” VR's wide range of ticket products, he added, “provides guests access to real savings … by purchasing in advance, purchasing multiple ski days, or purchasing packages of products.”

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