or Connect
EpicSki › The Barking Bear Forums › On the Snow (Skiing Forums) › General Skiing Discussion › Vail Resorts Year-to-year revenue comparison
New Posts  All Forums:Forum Nav:

Vail Resorts Year-to-year revenue comparison

post #1 of 11
Thread Starter 

This report was released by Vail resorts a few days ago, and I ran across it tonight. (I guess they release these quarterly?) It's pretty interesting, in that they are reporting skier visits down by almost 3% compared to last year, but revenue is up in every category. 

 

It's only one year, and certainly it could be an outlier, but it looks like the rising lift ticket prices, and infrastructure/destination/marketing focus that seems to drive Vail, are working.

 

And of course, this doesn't say anything about actual profitability or debt load, etc.

 

Report : http://investors.vailresorts.com/releasedetail.cfm?ReleaseID=908478

 

Summary Table from the report :

 

Season-to-Date Ski Season Metrics (1)

(% Change from Prior Year Period)

   
 

Season-to-Date

 

4/19/15 vs. 4/20/14

Total Lift Revenue

8.5%

Ski School Revenue

3.4%

Resort Retail/Rental Revenue

3.8%

Dining Revenue

3.3%

Total Skier Visits

(2.8%)

post #2 of 11
Wow-Just imagine if they had to pay their instructors! Considering skier vists went down they did pretty well. I'd love to see the total revenues for these categories (lifts, ski school, etc) as a % to total revenues.
post #3 of 11

Well played Coach, well played.

 

 

If this trend continues........skier visits drop, and revenue increases.........so, if nobody went, then Vail would own the world?  

post #4 of 11
Quote:
Originally Posted by Gunnerbob View Post

Well played Coach, well played.


If this trend continues........skier visits drop, and revenue increases.........so, if nobody went, then Vail would own the world?  

Kind of reminds me of the US income tax system. Fewer and fewer of us are paying more and more. Shortly, my friends from the lounge will stop in to remind me that even those that got free lift tickets bought food so they really did contribute too. wink.gif

In all seriousness, with a reduction in skier visits they have obviously really increased prices or significantly reduced some expenses, or a combination thereof. I'd love to spend a day with their books
Edited by Coach13 - 4/27/15 at 7:26pm
post #5 of 11
Thread Starter 
Quote:
Originally Posted by Coach13 View Post

I'd love to spend a day with their books

 

So would I... though I'd want to bring an accountant with me. That said, they are re-investing a lot of it most likely. The $50M (according to Vail resorts themselves) investment in PCMR/Canyons is a big price tag.

post #6 of 11
With Tahoe and the Utah snow issues
That may play into the drop in visits
post #7 of 11
Quote:
Originally Posted by near nyquist View Post

With Tahoe and the Utah snow issues
That may play into the drop in visits

No doubt it played a role.
post #8 of 11
Quote:
Originally Posted by dbostedo View Post

So would I... though I'd want to bring an accountant with me. That said, they are re-investing a lot of it most likely. The $50M (according to Vail resorts themselves) investment in PCMR/Canyons is a big price tag.

I'd have to think VR could sneeze $50m, but I'm sure they are not done expanding their business base.
post #9 of 11

Interesting that despite the addition of PC/Canyons this year that skier visits are down.  What does that say about visits to the California resorts?

 

Edit:  Note on the full report says it was adjusted by assuming the Utah resorts were owned both years.  

post #10 of 11

The investors website is an interesting alternative entrance into the world of Vail, Inc.

 

From the "Investors Conference Presentation"

 

DIFFERENTIATION

• No new supply 

 

SUSTAINABLE GROWTH

• Sophisticated pricing strategy drives volume and yield

– Season pass provides value with early commitment

– Premium pricing for non-pass holders

 

(another slide essentially says that by the time a walk-up customer gets to the ticket window, he is not going to turn around no matter what the price is.)

 

and on another slide about season passes,

– Brings pass buyer and their whole group

 

HIGH-END DEMOGRAPHIC

• 25% of Beaver Creek and Vail destination guests have annual income above $500K 

[Wow!]

 

and amusingly, even the MCP and MAX are wins for them:

• Competing pass products drive awareness

– News coverage consistently compares new offerings to Epic Pass, the best selling pass in the industry

 

And $50M is a sneeze:

PARK CITY TRANSFORMATION

• All-in consideration of $538 million(1) 

(That's the long term commitment, not one year)

Total 2015 capital expenditure planned to be $120-125M, of which $50 for Utah.

post #11 of 11
Quote:
Originally Posted by Coach13 View Post


In all seriousness, with a reduction in skier visits they have obviously really increased prices or significantly reduced some expenses, or a combination thereof. I'd love to spend a day with their books

The numbers in the OP are revenue, NOT bottom line, so expense reduction is not a consideration (although Vail has proved to be good at that also)-in spring 2009, Vail stock was under $20/share...now it is over $100.  Their annual reports contain a lot of financial info- http://investors.vailresorts.com/annuals.cfm but may not have the specific details you are looking for (like 54.6% NET Ski School profit margin which can be seen at https://www.facebook.com/897482290267031/photos/pb.897482290267031.-2207520000.1430255835./1004719086210017/?type=1&theater

 

Window price at Vail this spring was $159 (or maybe $158)...it was less than a handful of years ago we were discussing when an all day ticket would exceed $100...now kids, seniors & 1/2 day tickets easily exceed that with the discount for multi-day purchases at the window only being $10/day.  

 

Lift tickets at places like Vail have definitely exceeded CPI (and employee salary growth).  I think that Vail has realized that many of their customers pay $100+ for things like concerts, golf, etc., so why not charge them that for lift tickets.  (Of course, $100+ concerts tend to be one off events and golf courses aren't able to have 10,000+ players a day on tax payer owned land). 

 

I think Vail delivers a good product, but worry that their aggressive pricing and cost cutting, while good for the bottom line in the short term, will hurt customer loyalty/growth and employee morale/retention in the long term.  

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Skiing Discussion
EpicSki › The Barking Bear Forums › On the Snow (Skiing Forums) › General Skiing Discussion › Vail Resorts Year-to-year revenue comparison