SAM Magazine—Broomfield, Colo., Dec. 8, 2023—On a Dec. 7 earnings call, Vail Resorts CEO Kirsten Lynch reported continued pass sales growth in both units and revenue for the company headed into the 2023-24 season. Pass product sales for the North American ski season increased approximately 4 percent in units and approximately 11 percent in sales dollars through Dec. 4, 2023, as compared to the prior year period through Dec. 5, 2022.

Unit sales moderated relative to the figures reported in the company’s Sept. 28 earnings call, while the increase in sales dollars remained roughly the same. Lynch attributed this to a successful push to move purchasers earlier in the selling cycle. 

Trends for the Season

The company has continued to see growth across all major pass product segments, with the strongest growth in regional pass products and Epic Day Pass products, as well as growth in all markets but particularly in the Northeast. 

“The results of our North American pass sales demonstrate strong loyalty among our pass holders, with particularly strong pass sales growth from renewing pass holders, and also from guests in our database who previously purchased passes but did not buy a pass in the prior season,” said Lynch. She added that she was “pleased with our significant base of committed guests that provide meaningful stability for our company, especially during economic uncertainty.”

The company expects advance commitment pass products to represent more than 73 percent of all skier visits at its 41 resorts this year—far more than the national average of 50 percent reported by NSAA in its 2022-23 Kottke End of Season and Demographic Report—with an estimated 2.4 million guests committing in advance of the season in non-refundable pass products. The products are expected to generate more than $900 million of revenue. 

Lynch noted that the company’s Northern Hemisphere resorts have for the most part opened with typical conditions for the time of year. Lodging booking trends were also consistent with prior year levels, and the company is reportedly on track with staffing and seeing strong employee return rates compared to the prior season. 

New Rollouts

The company has two major rollouts for the 2023-24 season. The mobile pass and ticket technology it piloted last season is now widely available across its properties through the My Epic mobile app (which replaced the EpicMix app this fall). Vail Resorts has also launched a new rental program called My Epic Gear. 

My Epic Gear is a membership program that will allow members to rent in-line ski and snowboard gear at the company’s resorts. The service will include daily slopeside pickup and drop off.  

The program is being piloted this year at Vail Mountain, Beaver Creek, Breckenridge, and Keystone, Colo., for a limited number of pass holders. It is expected to officially launch for the 2024-25 winter season at Vail, Beaver Creek, Breckenridge, Keystone, Whistler Blackcomb, B.C., Park City, Utah, Crested Butte, Colo., Heavenly and Northstar, Calif., and Stowe, Okemo, and Mount Snow, Vt., with further expansions expected in future years.

The program will include kids gear and will be limited to 60,000 to 80,000 members for the 2024-25 season. It will be supported by a $13 million incremental capital investment to expand the company’s premium gear fleet and fulfillment infrastructure.  

2024 Capital Plan

Other capital expenditures for 2024 include two lift upgrades announced in September: a six-place lift at Whistler Blackcomb, B.C. (initially slated for installation in 2023 but delayed due to labor constraints at Doppelmayr), and a six-place lift at Hunter Mountain, N.Y. The company is also in the planning process for a new 10-person gondola at Park City Mountain, Utah, slated for installation in 2025.

Hunter and Park City are also slated for snowmaking enhancements in 2024. Afton Alps will get a 10-lane tubing addition and its Alpine Building will be renovated to create a 200-seat restaurant. At Seven Springs, Pa., Vail Resorts plans to add 390 new parking spaces. Perisher, Australia, will get a new six-person high speed lift to replace the Mt Perisher Double and Triple Chairs ahead of the 2025 season. Andermatt-Sedrun, Switzerland, will see $11 million in capital investments that include new snowmaking and on-mountain dining enhancements. Lastly, the company is expanding waste reduction projects across its portfolio. 

In all, Vail Resorts expects to spend approximately $189 million to $194 million, excluding the $13 million of incremental capital for My Epic Gear, the $11 million of growth capital investments at Andermatt-Sedrun, and $1 million of reimbursable capital. 

Fiscal Outlook

Overall, Vail Resorts reported a net loss of $175.5 million for the first quarter of fiscal 2024 compared to a net loss of $137 million in the same prior year period. The resort reported EBITDA loss was $139.8 million for the first quarter of fiscal 2024, compared to a loss of $96.5 million for the first quarter of fiscal 2023.

Lynch attributed the losses to cost inflation, including a $7 million impact of Vail Resorts’ fiscal 2023 employee investment, $14 million lower EBITDA from its Australian resorts due to weather-related challenges and a return to normal demand following a record year prior, $4 million lower EBITDA from its North America summer operations due to lower demand for summer mountain travel and weather-related challenges, and a $4 million negative impact from foreign exchange rates.

The Company reaffirmed its guidance for fiscal year 2024 of $316 million to $394 million of net income and $912 million to $968 million of resort reported EBITDA. Regarding the fiscal outlook for 2024, Lynch said “there continues to be uncertainty around the economic outlook and the impact that may have on travel and consumer behavior as we head into our primary operating season." 

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