Broomfield, Colorado — It came as a shock to some when Vail Resorts announced that Kirsten Lynch would be stepping down as CEO, and Rob Katz would return to the throne. After the latest earnings report, it may not be as big of a surprise.
Last Thursday, Vail Resorts released its 2025 third-quarter earnings report. There were some good statistics in there for Vail, including an increase in net income and growth in pass sale dollars year over year. The bad news was the decline in visitation, resort reported EBITDA, and pass units. There was also a decrease in revenue in some resort sectors, such as lodging, ski school, and retail/rental.
During the third-quarter earnings call, Vail Resorts CEO Rob Katz revealed his mindset regarding the future of the company. After giving his remarks regarding the third quarter, he faced questions from various people. Some of the notable things he mentioned were the need to drive visitation during off-peak periods, the goal to have more skiers who don’t have an Epic Pass visit, and the desire to expand responsibly.
In terms of a future strategy, he didn’t detail a comprehensive plan. However, this is understandable, seeing that he just became CEO a few weeks ago.
In my opinion, the most interesting part of the call came during Katz’s opening remarks, where he detailed his opinion on a popular narrative regarding Vail Resorts:
“It also needs to be clear to our guests what our company stands for. I recognize that the very existence of Vail Resorts as the industry leader and a large publically owned company can sometimes seem as at odds with the essence of the ski industry. But that’s not how I see it. We are a company filled with passionate people and so many avid skiers and riders who have worked for decades to innovate this industry for the better. And we can do a better job showcasing how we benefit our guests and employees and the industry overall, and most importantly, do a better job avoiding the moments that often set us backwards.”
Rob Katz and Vail Resorts have got their work cut out for them on that front.
One of the key moments came when a caller asked about whether they would consider selling Park City Mountain Resort. In May, billionaire Matthew Prince purchased the Town Lift Plaza in Park City and revealed that he reached out to Vail Resorts to see if they’d be interested in selling. Here was Katz’s response:
“No. No, that’s not something that we’re looking at. And we don’t think that that ultimately is in the right long-term interest of our company. Especially a resort like Park City [that] is critical to our overall company and our network. We think it’s incumbent upon us to continue to listen to the feedback from our guests, from our community partners, and continue to drive improvement, both in the way that we deliver an experience for our guests, the way that we deliver for our employees, and the way that we deliver for our community members.”
So you’re telling me there’s a chance… Jokes aside, I don’t see his response as a shock here, as Park City remains one of the most visited ski resorts in the country, and selling it would definitely hurt the company. Better relationships in the Park City community will be key for Vail, though, if they want to get new lifts approved and remain the long-term owner/operator for the massive ski resort. If I were Rob Katz, I’d be discussing with Prince a partnership to put in a new gondola that would replace the Town Lift, similar to the deal they did with the Canyons Resort Village Management Association.
You can listen to the Fiscal Third Quarter Earnings Results webcast here.
Image Credits: Emery, Vail Resorts
