(Bloomberg) -- It was a bold move when in March 2021, then-CEO of Vail Resorts Inc. Rob Katz announced that his company would be slashing the price of its most profitable product, its season passes, by a full 20%, to $583. The company's stock price dropped on the news, and yet the strategy bore out: Over the course of the season, Vail sold 2.1 million Epic Passes, representing a 76% increase from 2019. For customers, the result was a mixed bag that included great values but also on-mountain overcrowding, which stemmed from higher volumes of passholders as well as supply chain issues and labor shortages.
Now under the leadership of new CEO Kirsten Lynch, those prices are creeping upward again. For the 2022/23 winter season, early bird Epic Pass prices start at $626 for limited “local” access; the nationwide, unrestricted passes start at $841. Sales opened March 21 and will see more price jumps as the season comes closer.
“As we look ahead to next season, there are two things we are very focused on: the experience at our resorts and the value we provide our pass holders,” says Lynch in an interview.
To wit, for consumers who plan ski trips around school breaks, an Epic Pass may be the only way forward. As a new perk, the company will now prioritize pass holders during the busiest holidays windows across its 34 North American resorts. Those dates include the year-end holidays (Dec. 25–Jan. 2), the weekend around Martin Luther King Jr. day (Jan. 14–17), and the dates surrounding Presidents' Day (Feb. 18–27).
Related: The Future of Skiing is Digital, Says Vail CEO
Lynch says the 7.4% price jump is inflationary and that it will help the company achieve a $20-per-hour minimum wage (up from $15) and build 21 lifts across 14 resorts, part of a $320 million capital investment plan. Highlights include new high-speed chairs at Breckenridge, Keystone, and Okemo; a 250-acre terrain expansion at Beaver Creek with the opening of McCoy Park; and a lift upgrade at Crested Butte. “We are committed to providing our employees and guests a great experience and we have some major investments that support that.”
In addition to the natural mitigating effect of higher prices on overcrowding, Vail is also introducing new operational systems to forecast lift wait times and optimize lift-loading processes in the year ahead.
“Migrating lift ticket guests to a non-refundable commitment ahead of the season is a strategy that has created financial stability for our company, driven loyalty with our guests, and utilized excess capacity on weekdays and non-holidays at our mountain resorts,” says Lynch. And the 2022/23 Epic Pass is still cheaper than the 2020 price of $979.
This year's Ikon Pass, a main competitor which gives access to up to 50 ski destinations, starts at $769 for restricted access and $1,079 for riders who prefer to avoid blackout dates.
Related: The Slightly Masochistic Trend Taking Skiing by Storm
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