Vail Resorts, the owner of ski resorts including Whistler Blackcomb, is veering off-piste.
Driving the news: Late Apex Partners, a prominent Vail shareholder, is demanding the ski resort giant axe its CEO and change up its strategy. In a letter to Vail’s board, the firm accused management of destroying brand value and turning Vail into a hated “evil empire.”
- What they’re likely upset about is the 2% annual decline in sales for Vail’s $1,000+ Epic Pass that came to light last month, the first drop since it was introduced in 2008.
- The pass, which grants season access to its 42 properties, is the bedrock of Vail’s business model as it offers guaranteed revenue well before the season starts.
Why it matters: North American ski resorts have become more consolidated thanks to Vail and rival Alterra (which owns Ontario’s Blue Mountain) and pricey megapasses are now the norm. They’ve brought in record profits, they’ve also crowded the hills and priced out skiers.
- Swaths of casual skiers now pay more than $300 for single-day tickets at some resorts. Alterra’s CEO has said this tension has hit “a tipping point” for the industry.
Bottom line: Selling fewer passes while interest in skiing is at an all-time high is a likely sign that something’s gone wrong.—QH