SAM Magazine—Broomfield, Colo., Oct. 1, 2024—Vail Resorts reported its Q4 and full-year 2024 results last week for the fiscal year ending July 31, detailing what was a difficult 2023-24 season across North America and in Australia. Even so, VR fared relatively well compared to the record fiscal year 2023 that preceded it.

VR also revealed a "resource efficiency transformation plan" designed to save the company $100 million by the end of fiscal 2026 (July 31, 2026). The plan involves scaled operations, a global shared services model and guest support center, and an expansion of workforce management, along with staff cuts that will eliminate 2 percent of the company payroll. The cuts will reduce corporate staff by 14 percent, operations staff by less than 1 percent, and frontline staff by 0.2 percent.

Further, VR noted that Epic Pass year-to-date sales are down 3 percent in units and up 3 percent in income, and that it expects this trend to continue through the fall.

2023-24 season. For fiscal 2024, total net revenue decreased a mere 0.1 percent to $2.885 billion. Mountain reported EBITDA was $802.1 million, down from $822.6 million (a 2.5 percent decline) in fiscal 2023. VR's net income suffered more, coming in at $230 million for fiscal 2024, down from $268 million in fiscal 2023—a 14 percent drop. 

What impacted fiscal 2024? Skier visits declined 9.5 percent, but with more than 70 percent of visits on passes, ticket revenue rose 1.5 percent, primarily due to an increase in pass revenue of 9.4 percent (VR had raised pass prices by 8 percent compared to the prior year). Non-pass revenue declined 10.7 percent, which VR attributed to challenging conditions and a broader "industry normalization" post-Covid. With decreased visitation per pass, VR's effective ticket price rose 12.2 percent year-over-year, from $73.20 to $82.14.  

Despite reduced visitation, ski school revenue increased 6 percent and dining revenue 1.3 percent, as guests increased their spending per visit in these departments at North American resorts. 

Retail/rental revenue decreased 12.3 percent, as retail sales decreased 13.8 percent and rental sales 10.1 percent.

Operating expense increased 1.4 percent. A rise in general and administrative expenses, property taxes, and repairs and maintenance was partially offset by reduced labor hours at North American resorts, where weather conditions limited operations to less than full capacity (and full employment), along with "disciplined cost management," said CEO Kirsten Lynch.

2024 summer (Southern Hemisphere winter). In addition to North American woes, VR's Australian resorts endured a difficult 2024 season. Snowfall declined 28 percent at its resorts compared to the prior year, and was 44 percent below their 10-year average. The challenging conditions, combined with softer demand heading into the winter season, led to an 18 percent drop in visits in the quarter relative to the prior year period.

On the plus side: Revenues for summer mountain business in North America grew 15 percent due to "fewer weather-related and construction-related disruptions," even though it "underperformed our expectations," Lynch said.

2024-25 guidance. Looking ahead to fiscal 2025, VR said it expects net income to be between $224 million and $300 million, with EBITDA between $838 million and $894 million. At the midpoint, the guidance implies an EBITDA margin for fiscal 2025 of approximately 28.6 percent. VR expects the EBITDA growth to come from "price increases and ancillary spending, the resource efficiency transformation plan, and the addition of Crans-Montana for the full year," Lynch said.

Some of that ancillary spending is expected to come from My Epic Gear, which is launching at 12 destination and regional resorts across North America. VR is limiting membership to 60,000 to 80,000 in the first year before scaling up in future seasons. VR plans to provide "additional updates on My Epic Gear and the on-going capital needs of the business in December," Lynch noted.