Source: Wall Street Journal Report
Vail Resorts, the powerhouse of the ski industry, is grappling with significant challenges, including its first-ever decline in season pass sales.
Central to this development is Stowe Mountain Resort in Vermont, Vail’s first acquisition on the East Coast, which has experienced both enhancements and controversies under the company’s ownership.
The Epic Pass and Stowe Mountain
Introduced in 2008, Vail’s Epic Pass transformed the ski industry by offering access to multiple resorts for a fixed price. This season, the pass costs around $1,000 and provides unlimited access to 42 properties globally, including Stowe. The pass has been a game-changer, locking in customer loyalty and ensuring stable revenue. However, this year, North American sales of the Epic Pass dropped by 2%, despite an 8% price increase that kept revenue growth intact.
Stowe Mountain, acquired by Vail in 2017, has seen significant investments, including more efficient snow-making systems and higher-speed chairlifts, to improve its appeal. The introduction of the Epic Pass brought an influx of visitors to the resort, easily accessible via a scenic mountain road. While this boosted Stowe’s profile, it also led to overcrowding, traffic congestion, and diminished experiences for some long-time locals.
Local Backlash at Stowe
The changes Vail implemented at Stowe have not been universally welcomed. The company altered a beloved local ski program for children, which had historically been free for participants and chaperones in exchange for volunteering. Now, the program costs $68 per season, and volunteers receive fewer free tickets.
Vail’s Broader Struggles
Vail Resorts’ business model relies heavily on the Epic Pass to drive skier visits, which account for 75% of its traffic. The decline in sales marks a concerning trend, compounded by broader industry challenges such as stagnant skier growth over the past two decades and competition from rival passes like Alterra Mountain Company's Ikon Pass.
The company has faced operational difficulties at several resorts. Whistler Blackcomb in Canada has dealt with low snowfall and management issues, while Park City in Utah experienced a ski-patrol strike that shuttered most of the mountain during the busy holiday season. Such issues have fueled customer dissatisfaction, with long wait times and overcrowding becoming frequent complaints.
Looking Ahead
Vail continues to invest in its resorts, allocating up to $254 million this year for upgrades, including a new gondola at Park City and enhancements at its recently acquired Swiss property, Crans-Montana. Stowe, as part of this portfolio, remains a key asset, though local dissatisfaction highlights the tension between corporate strategies and community expectations.
Despite these challenges, Vail CEO Kirsten Lynch remains optimistic, citing the company’s focus on the “guest experience” and efforts to innovate within the industry. However, with increased competition and changing skier preferences, including a shift toward backcountry skiing, Vail’s dominance faces mounting pressures.
For Stowe Mountain and other Vail resorts, the coming seasons will test the company’s ability to balance growth with customer satisfaction, a challenge critical to retaining its position as a leader in the ski industry.
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