SAM Magazine—Broomfield, Colo., March 12, 2024—Vail Resorts reported a 9.7 percent decrease in total season-to-date skier visits (as of March 3, 2024) as well as a 2.2 percent year-over-year decrease in total net revenue for the three-month period ending Jan. 31, 2024 (Q2). The company lowered its fiscal guidance for 2024 in response to the season-to-date underperformance, even as it anticipates improved performance this spring based on improved conditions out West and historical visitation patterns.

“The results for the second quarter were negatively impacted by challenging conditions at all of our North American resorts, with approximately 42 percent lower snowfall across our western North American resorts through January compared to the same period in the prior year and limited natural snow and variable temperatures at our Eastern U.S. resorts (comprising the Midwest, Mid-Atlantic, and Northeast),” said Vail Resorts CEO Kirsten Lynch.

Skier visits fell below both prior years and the company’s expectations based on both volume and frequency. “We expect a portion of the lower visitation is related to the challenging conditions in the first half of the season as well as a shift in visitation patterns,” said Lynch, noting that even when conditions improved, visitation did not improve as quickly as expected.

Season-to-date revenue as of March 3 was stronger than skier visits in several categories with total lift revenue up 2.6 percent and ski school revenue up 5.5 percent, while dining revenue dipped just 0.5 percent. Rental and retail revenue, on the other hand, was down a significant 9.3 percent. 

Those declines represent an improvement over the comparative numbers for the three-month period ended Jan. 31, 2024, which saw dining revenue down 4.4 percent and rental/retail revenue down 14.9 percent. Lodging revenue was also down 3 percent for that same period.

The declines are partially attributed to the decrease in skier visits. Rental and retail revenue were also impacted by the closure of certain leased operations, and a reduction in inventory impacted lodging revenue. 

The company decreased Q2 operating expenses 5.8 percent compared to the same period last fiscal year thanks to “disciplined cost management” and reduced labor hours, in part an outcome of the challenging early season weather that forced many of its ski areas to open later than normal and operate with limited available terrain. 

All this combined to lead to a decrease in total net revenue. The company lowered its previously announced fiscal 2024 guidance and now expects its net income to be between $270 million and $325 million, down from $316 million to $394 million; and resort reported EBITDA to be between $849 million and $885 million, down from $912 million to $968 million.

Despite the lowered guidance, Lynch was optimistic about expected spring performance, saying, "For the remainder of the season, we are expecting improved performance compared to the season-to-date period, including an expected shift in visitation patterns into March and April. This is based on our significant base of pre-committed guests and guest historical behavior patterns, the improvement in conditions across our western North American and Northeast resorts, and our lodging booking trends for the Spring Break period.”

Vail Resorts’ 2024-25 Epic Pass suite went on sale last week. Lynch noted that on average, pass prices have increased 8 percent over the prior season's launch price. Crans-Montana has been added to the pass this year. 

The company expects to close on its acquisition of the Swiss resort this spring, said Lynch, who added that the acquisition was part of Vail Resorts’ “growth strategy of expanding its resort network in Europe, creating even more value for pass holders and guests around the world.”

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