I remember suprisingly reading from the previous filing, they lose money when the very early season snowfall is up, as they then need to open up rather then staying "closed due to conditions", (i.e. the "money hold"). Obviously, this shows the ratio btwn passholders and daypass varies within the season. Of course, if they aren't aubstantially open and have a good product by holidays, it goes the other way. So a fine line to max profits.
Interesting point. But I don't think that factor is at play here, because Vail said the holiday period was "in-line" with expectations. Given the snow, the additional business during the holidays should have more than picked up for the cost shortfall early season by opening early - at least historically. We're off to a decent start with snow, and yet Vail is already lowering the full year outlook. Lowering the full year earnings outlook despite the snow suggests it's not early season costs related to snow.
Vail's argument that last year's poor conditions kept people away early season does have some merit, but I still can't help but wonder if there are other factors at work here such as additional competition from IKON pass and perhaps slowing economy?
I am enjoying the discussion.