Vail to buy Stowe? - Page 8

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  1. #71
    Quote Originally Posted by jimmywilson69 View Post
    Imagine the first winter it doesn't snow here and Vail has to realize how much money it costs to make snow over the entire mountain... Going to be a pretty big eye opener for them.
    Imagine you get a terrible western winter like a few years ago, when eastern skiing was actually better for much of the season. Again, diversification is not a bad thing, and decreases overall risk in their portfolio.

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  2. #72
    Quote Originally Posted by deadheadskier View Post
    Not really an apples to apples comparison between Stowe and Whistler. Whistler is the largest resort in North America. They had the capacity to absorb significant increases in business. Stowe does not. Because of this reality, maybe they would have to adjust their model for Stowe. Perhaps the Epic Pass only includes Stowe midweek. If you want to ski Stowe on the weekends, it's another $500 or something in that neighborhood. That would still represent a significant savings over current pricing at Stowe and offer the benefit of out west destinations on the pass. $1309 also wouldn't be so cheap that people would start jumping over from Sugarbush, Jay, Smuggs etc.
    That would be out of the norm. You could be right but that whole mid week thing is not the case with anything on the pass so far. And $500 jump just for Stowe making a totally new Epic Local East pass also seems unlikely. But nothing is fact at this time and all speculation and rumor.

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  3. #73
    Quote Originally Posted by Jully View Post
    Do you think Vail realizes that or cares though? I think about the crowds that I've heard of at Vail itself, their day with 50,000 skier visits or whatever it was. Is that not beyond capacity (not sure what their on hill crowding looked like)?
    That is not a common capacity. Plus with the shear number of lifts it spreads people out.

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  4. #74
    Quote Originally Posted by farlep99 View Post
    One would imagine a publicly traded, multi-million dollar company wouldn't realize this after they purchase the mountain. They know full well what the potential costs are in a worst case scenario before closing a deal
    Agreed. While Vail isn't in the eastern market currently, that doesn't mean they live in a bubble and have no idea what the weather is like over here. I'm sure they have people on their staff that at some point had prior eastern experience. And if they somehow didn't, then they would do their due diligence and consult with someone that does.

  5. #75
    Quote Originally Posted by VTKilarney View Post
    As far as pricing is concerned, Vail is not going to run Stowe as an island. The whole point is to drive business out west. So whatever the pass price may be, I am confident that Vail will want to sell as many passes as possible in order to get as many people as possible taking a trip out west.
    Exactly my point earlier, Vail is looking at the Stowe clientele and targeting them. Probably not very interested in the guy who is trying to ski on the cheap that more than likely will stay on Frisco, bring their lunch and drive to Vail Resorts.

    I am one of those and I know I do not fit the profile their marketing targets.

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  6. #76
    Quote Originally Posted by jimmywilson69 View Post
    Imagine the first winter it doesn't snow here and Vail has to realize how much money it costs to make snow over the entire mountain... Going to be a pretty big eye opener for them. Its not like out west where you make a base on some trails and nature does its thing. Even in a good winter, there are thaw/refreeze cycles. Totally different cash flow/profit model. Can it work, yes if they sell X number of additional Epic passes
    As with any purchase or merger, the acquisition team with go over all that and typically look at past 5 year financials and operations. I was part such a team many moons ago and I bet that process has improved more.

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  7. #77
    Quote Originally Posted by tumbler View Post
    Vail has old East Coast people in their management- Blaise used to be president at Sugarbush...
    I think someone told me he started as a patroller at mount Ellen and gradually rose threw the ranks.

    I doubt east cost snowmaking would be a surprise to Vail. Any serious bidder should have access to there historical costs.

  8. #78

    Join Date
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    Quote Originally Posted by nhskier1969 View Post
    I disagree. I am a season pass holder at SB. I would never leave SB but its intriguing to me because you could have a home mountain in New England and then plan a family trip out west and it would be covered under your season pass. There are probably many new englanders that Plan a couple of trips up north and do a trip out west. In terms of market share this would entice the consumer to gravitate towards the Vail product.
    But the crowds you would have a Stowe, OMG
    This is exactly what we are doing with the Max Pass. That's why I asked about the independents because I can tell you as of now I won't be going to a Sugarbush or Smugglers because they are not part of a package. No doubt they are great areas, but a bundled product is so much more attractive then a solo one. I wonder how many people feel the same way I do? I certainly saw a lot of Max Passes at Okemo last weekend.

    Alex

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  9. #79
    Cool - so instead of $400/night rooms @ the Lodge & $100 lift tix - $600/night rooms & $150 lift tix.

    Original prices were marginally prohibitive for me, but I've always wanted to ski Stowe. Guess not now. My fear is that Vail's pricing practices will cause increases elsewhere in the northeast, which are pretty high as they are. I fear for the long-term viability of skiing in the northeast given the decreasing snow due to warming & increased costs.

  10. #80
    Quote Originally Posted by dlague View Post
    That is not a common capacity. Plus with the shear number of lifts it spreads people out.

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    Certainly not common, but we weren't necessarily talking about common weekends at Stowe either. We were talking about holiday crowds.

    That is exactly my point though, Vail can spread people out, Stowe can't. At least not in the same way as some western resorts.

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