Vail just announced that due to soft pre-holiday activity, the company now sees full year earnings to be below previous expectations (see link below).
https://www.marketwatch.com/story/v...expected-pre-holiday-resort-visits-2019-01-11
The announcement comes on the heels of disappointing earnings during the offseason. Vail seems to not be blaming the increased competition from the IKON pass, but I wonder if this is a bigger factor than Vail is letting on. I thought (and still do think) that longer-term, the consolidation of the industry will actually benefit Vail as the industry becomes a duopoly. However, the short-term competitive impact may be greater than anticipated. And after all, this year's IKON pass was such a good deal with partner resorts that i don't even know how they can do it, and wonder if it is even sustainable (I'm thinking the number of partner resort offerings next year will drop off dramatically on IKON or at least AltaBird won't be offered).
Anyway, my guess is IKON this year is having a greater impact than Vail is letting on. Perhaps next year, Vail won't raise prices so much?
Thoughts?
https://www.marketwatch.com/story/v...expected-pre-holiday-resort-visits-2019-01-11
The announcement comes on the heels of disappointing earnings during the offseason. Vail seems to not be blaming the increased competition from the IKON pass, but I wonder if this is a bigger factor than Vail is letting on. I thought (and still do think) that longer-term, the consolidation of the industry will actually benefit Vail as the industry becomes a duopoly. However, the short-term competitive impact may be greater than anticipated. And after all, this year's IKON pass was such a good deal with partner resorts that i don't even know how they can do it, and wonder if it is even sustainable (I'm thinking the number of partner resort offerings next year will drop off dramatically on IKON or at least AltaBird won't be offered).
Anyway, my guess is IKON this year is having a greater impact than Vail is letting on. Perhaps next year, Vail won't raise prices so much?
Thoughts?