Photo: Vail Resorts
Vail Resorts is having a rough year. According to an update for investors, the resort giant has continued to post diminished earnings this season in the face of poor weather conditions.
The news came via a second-quarter earnings update for investors. “This has been the most challenging winter across the Rockies that we have ever experienced with the lowest snowfall levels in more than 30 years for our Colorado and Utah resorts, combined with warmer temperatures, resulting in reduced terrain throughout the quarter and into February,” said CEO Rob Katz. “Given that backdrop, we are pleased with the strength and stability shown by our operating model, as we reported only modest declines in lift revenue in what many would consider a worst-case weather scenario.”
According to Vail, skier visits to its U.S. resorts were down 11.9 percent through March 1, compared to last winter, while total lift revenue was down 3.6 percent. Season-to-date ski school revenue was down 8.2 percent, dining revenue 8.6 percent and retail/rental revenue for North American resort and ski area store locations 5.7 percent.
The decline in income has led the company to scrambled to entice skiers. Just last week, Vail announced an age-based discount for Gen-Z skiers. “There’s no doubt that it absolutely means that we have to work hard to reach people who may not have come as much, or may not have come at all,” added Katz.
