The 2025–26 ski season is coming to an end, proving to be a challenging period for Vail Resorts, the largest ski resort operator globally. With snowfall measuring 60% below average up to February in Colorado and experiencing similar conditions in neighboring Utah, the company has witnessed a significant decline in skier and snowboarder attendance.
The challenges are compounded by a second consecutive difficult winter. The prior season was marked not only by insufficient snowfall but also by a 12-day ski patrol strike at the company’s largest resort in Park City, Utah. This disruption led to the closing of numerous runs and left many customers, including venture capitalists, expressing their frustration regarding long lift lines on social media. This turmoil ultimately resulted in the departure of then-CEO Kirsten Lynch.
Vail Resorts operates on a business model heavily reliant on the sale of ski passes priced around $1,000, available only for a limited time ahead of the season and granting access to numerous resorts across the U.S. (in both the East and West), Canada, Switzerland, and Australia. Despite the challenging environment, the company experienced only a 4.7% decrease in revenue during its most recent quarter, primarily due to declines in ski rentals and lodge room bookings. In North America, visits fell by 11.9% through March 1.
Attention is now directed towards the upcoming season. Sales of the Epic Pass have been sluggish over the last couple of years, prompting the return of former CEO Rob Katz, who previously led the company from 2006 to 2021. Katz's leadership is crucial as Vail navigates the impacts of climate change, a slowly growing industry, and increasing competition from alternative sports.
“We’ve faced a few challenges, some within our control and others not,” Katz told Fortune in a recent interview. “Upon my return as CEO, it became clear that our industry, our consumers, and our company have all evolved.”
These evolving dynamics are particularly evident in Vail's prepaid, multi-resort passes. Katz was instrumental in introducing the Epic Pass, which has become a significant competitive offering against Alterra Mountain Co.'s Ikon Pass. This approach secures revenue and mitigates the financial risks associated with weather variations by attracting skiers willing to seek out optimal conditions.
One important realization for Katz is that the pass model needs revitalization. Many skiers may feel they have not received adequate value from their passes over the past two seasons, while rising costs in the sport deter many young enthusiasts from participating.
“It’s crucial that the pass remains an attractive offer,” Katz emphasizes. In early March, just prior to launching sales for the 2026–27 passes, the company announced a 20% price reduction for skiers and riders under 30. Katz also indicated the necessity to enhance lift ticket sales to cater to those who may hesitate to commit to a full pass, noting, “We need to adopt a more aggressive stance towards lift tickets.” This has included promotions such as offering a 30% discount for tickets reserved a month in advance.
In addition, Vail aims to broaden its customer demographic by reaching out to skiers of color in the United States. “Our market penetration among communities of color does not match that of the white community, and we must continue to make strides in this area,” he explained. This commitment underpins Vail’s ongoing initiatives focused on diversity, equity, and inclusion, despite many corporations retracting similar efforts.
Katz acknowledges, “Visitors to our resorts do not always see people who reflect their backgrounds.” He emphasized the importance of having team members who can connect with diverse communities, leading Vail to collaborate with the National Brotherhood of Snowsports, an advocacy organization dedicated to discovering and nurturing talented skiers of color among other initiatives.
In light of the increasingly unpredictable weather patterns, Katz asserts his focus is directed towards controllable factors: “In a year like this, we cannot change the weather. We must continually seek improvement, and importantly, when we fall short, we must acknowledge it.”
Naturally, he is also hopeful for increased snowfall in the next season.
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