Vail Resorts hopes the ski vacation business is all uphill. One of North America's leading ski resort operators, Vail Resorts operates four mountain resorts in Colorado (Beaver Creek, Breckenridge Mountain Resort, Keystone Resort, and Vail Mountain) and three in Lake Tahoe on the California/Nevada border (Heavenly Mountain, Northstar-at-Tahoe, and Kirkwood Mountain Resort). The resorts operate under the company's Mountain segment. Through its Lodging segment, the firm owns or manages about 20 resorts in Canada, Colorado, Utah, and Wyoming. It also operates seven golf courses. Vail Resorts also has a Real Estate Development segment that develops real estate in and around the company's resorts.
The company reports revenue in three business segments: Mountain (which accounts for about 80% of revenue per year), Lodging (which accounts for about 15% of revenue per year), and Real Estate.
In addition to its resorts in Western mountain states and Canada, the company also owns a handful of ski resorts in the Midwest and one in Australia.
Sales and Marketing
The company promotes its resorts through a variety of targeted marketing and sales programs. These include customer relationship marketing (CRM) to targeted audiences, promotional programs, digital marketing via its websites (including social networking, search marketing, and display ads), loyalty programs that reward frequent guests, and traditional media advertising such as targeted print, TV, and radio ads.
Vail Resorts has used partnerships as a way to promote its resorts. The company's partners have included
, Nature Valley, and
Vail Resorts spent $32.3 million on advertising expenses in fiscal 2016, up from $27.5 million in fiscal 2015.
The company's revenue has been increasing year-over-year. It reported revenue of about $1.6 billion for fiscal 2016, up roughly $200 million compared to the previous fiscal period when Vail Resorts reported almost $1.4 billion in revenue. The spike in revenue was largely the result of increased revenue from the company's Mountain segment.
The increased total annual revenue in fiscal 2016 led to increased net income. The company reported net income of about $150 million for fiscal 2016, up from the roughly $115 million it claimed for net income the prior year.
Peak operating season for Vail Resorts is, of course, ski season, which lasts from mid-November through mid-April. The company's largest source of revenue is its Mountain segment, which makes most of its money from the sale of lift tickets (including season passes). Lift tickets represent about 40% of the Mountain segment's net revenue.
In order to deal with challenges in the tourism and real estate markets, Vail Resorts has also been diversifying into revenue streams beyond its core operations. Its Mountain News Corporation operates the online snow sports portal OnTheSnow.com and resort guide information provider MountainGetaway.com. Mountain News targets the skiers, snowboarders, and resort travelers who subscribe to its websites.
Like many of its rival ski operators, the company has been focused on marketing its ski properties as year-round operations in an effort to avoid serious business declines during periods of unseasonable winters. Vail Resorts promotes the use of its resorts for summer activities, such as mountain biking, zip lines, ropes courses, golf, tennis, and fishing to woo warm-weather visitors.
The company invests around $10 million per year to make enhancements to the ski and ride experience for its guests.
Mergers and Acquisitions
Vail Resorts completed its acquisition of Whistler Blackcomb Holdings, Inc. (Whistler Blackcomb) in late 2016 for about $1.1 billion. Whistler Blackcomb operates the Whistler Blackcomb resort, a year round mountain resort.