Vail Resorts, Inc. (NYSE: MTN) today reported results for the first quarter of fiscal 2023 ended October 31, 2022, provided season pass sales results, reaffirmed its guidance for Resort Reported EBITDA for fiscal 2023, provided additional detail on its calendar year 2023 capital plan and declared a dividend payable in January 2023.
Vail Resorts sold 2.3 million Epic Pass products for the 2022/23 season, which is down by 12% over last year.Source: VailResorts
“Vail will collapse. It’s not IF but WHEN.”
Vail will collapse. It’s not if but when. When pass prices go up by 20% they can only muster a 6% revenue increase associated with a 12% drop in units sold their upper tier passes while buying FOUR new areas. This all in an economy with huge inflation and huge labor cost increases. The financials just don’t add up to sustainability.
Their Experience Of A Lifetime (TM) is turning people away. Limited snowmaking this year (disasterous last year).
Poor grooming quality. I laugh at some of the pics posted to the pass group on Facebook talking about the amazing conditions when there’s huge grooming ruts, 2 foot ice boulders, death cookies galore, etc. in the pics.
Lack of maintenance to their lifts leading them to break down all the time (Attitash last year, Stowe this year). Lack of running lifts. Non lifties running lifts. Grumpy employees some that scream at you for no reason. Bad traffic. Long lines. Charge you to park with no lifts running. I can go on…
Interest rates are through their roof. Their line of credit they’ve been using to fund their upgrades is now suddenly much costlier. Meanwhile their bread and butter resorts — Vail, Beaver Creek, Breckinridge, Keystone — have a ton of aging detachable that need to be replaced within the decade.obienick via Snowjournal