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Vail Resorts, Inc. MTN has released ski season metrics for the season-to-date period ended Jan. 5, 2025 (comparative period ended Jan. 7, 2024). The reported metrics focus on the company's North America’s destination mountain resorts and regional ski areas, excluding the results from resorts of Australia and Europe in both periods.
Inside MTN's Season-to-Date Performance
The company reported a 0.3% decrease in season-to-date total skier visits compared with the prior-year period. However, season-to-date lift ticket revenues, including an allocated portion of season pass revenues, rose 4.5% year over year. Season-to-date results benefited from improved weather conditions.
However, the continued normalization of industry demand and the late timing of the Thanksgiving holiday in the current year affected its performance. Additionally, the company observed a shift in destination guest behavior, with more guests expected to visit later in the season.
Ski school and dining revenues increased 1.1% and 6.6%, respectively, compared with the previous year. On the other hand, retail or rental revenues for North America’s resort and ski area stores declined 5.4%. The company saw strong ancillary spending per destination guest visit, particularly in the ski school and dining businesses. This can be attributed to a higher mix of local visitation during the period.
Vail Resorts' season-to-date results indicate the stability provided by its season pass program and investments in the guest experience. The company's mountain operations teams executed effectively across all resorts, leading to improved local visitation compared with the prior year.
However, destination guest visitation at Vail Resorts' western North America’s resorts was below prior-year levels during the holiday period. This was attributed to a shift in industry visitation patterns, with more guests expected later in the season following the challenging early season conditions of the previous year.
The company expects improved performance for the remainder of the season, driven by a shift in destination guest visitation. This is supported by a strong base of pre-committed guests, current lodging booking trends and historical guest behavior patterns. Owing to these factors, the company anticipates meeting its full-year Resort Reported EBITDA guidance between $838 million and $894 million.
MTN’s Price Performance
Image Source: Zacks Investment Research
Shares of Vail Resorts have increased 4.2% in the past three months compared with the industry’s growth of 5%. The company is poised to benefit from solid season pass sales, development projects and innovative customer programs. Also, the focus on the Resource Efficiency Transformation Plan bodes well.