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What’s ludicrous is you putting word nobody said into other people’s mouth and starting to argue against it!
Vail wants Stowe skiers go to Vail. Not the (non-local) skiers going to Stowe. To Vail, Stowe/Okemo/Hunter are all just feeder hills.
They don't need to lose money in the east to drive traffic to the west. Not if they can help it. But if push comes to shove, they could as long as they come out ahead. That's the beauty of a large corp. They can cover the loss in a few isolated mountains.
I seem to read there’s a word “if” in the post you quote.And here's where you claim Vail would be fine running its eastern resorts at a loss:
Now let the back-tracking and bizarre use of random quotation marks begin.
On the contrary. I am saying that you do not purchase major eastern ski resorts because you think that's the best way to get more people to come to your western ski resorts. You buy major eastern ski resorts because you think it's profitable to own and operate major eastern ski resorts. You seem to think that this will only be profitable for Vail if it causes more eastern skiers to visit its western resorts. I think any uptick in visits to Vail's western offerings by eastern skiers was not a major factor in its decision to acquire Peaks. I think its decision to acquire Peaks was motivated primarily from a desire to become a national corporation with significant money making operations in the east. I think your condescending attitude toward eastern skiing is interfering with your ability to think rationally about the reasons Vail would purchase an eastern ski resort. The idea that Vail purchased these major eastern ski resorts as "feeder hills" that it will be happy to operate at a loss because it expects to double or triple or quadruple its profits at its western resorts with these acquisitions is the part I find ludicrous. There is a huge market here for skiers who rarely, if ever, go out west. Vail wants a part of the money they are spending in the east. If a few more of them go out west, all the better. But the success of this acquisition will not be measured by how many more eastern skiers visit Vail or some other western destination.
Okay I think you need some basic corporate finance to understand this.Sure. But the amount of money spent by eastern skiers going out west pales in comparison to the amount of money spent by eastern skiers skiing in the east. ABC's suggestion that Vail is buying eastern ski resorts to increase its shares of that much smaller pot of money is silly. If there wasn't significant money to be made from eastern skiers skiing eastern ski resorts, Vail would not be buying them. The cost of doing so would simply not be justified by any reasonably expectable increase in Vail's share of the much smaller pot of eastern ski money being spent out west.
Ugh, this thread is getting depressing.
But, having defended Vail's business practice of low-season-pass with high-daily-rate, I don't quite understand why they don't offer local only season passes. Those are people who don't want to ski elsewhere anyway. Forcing them to pay a higher price season pass just creates ill will (or drive them away) Sure, those may not be the most desirable customer. Still, there's little downside to keep them around.
Yes it isUgh, this thread is getting depressing.
Anyone foresee Boyne selling out?
What I AM saying is Vail is unlikely to expand the eastern destination which may compete with their primary goal of driving skiers to the western destination mountains.
They sent an e-mail out about this to members of the forum on Tuesday (or maybe it was just to members like myself, who responded to the page that popped up saying that my account had been blocked and to contact the admins if I felt this was wrongly done - I did contact the admins through the link that popped up).
The official explanation they gave was 2 fold. First, they expected a large number of questions from members about the details of the merger, and 2nd, for full transparency, they wanted to only address and answer the questions via their public social media feeds to make sure that everyone can see the questions and answers.
Going forward, I will be interesting to see if the communications crew from Mount Snow are as active on AZ as they have been in the past, or if Vail policy changes that? Time will tell I guess
Or connecting to Haystack and the other side of Crotched... Why have we been obsessed with Smuggs when these other potential connections were right under our noses?RIP MtSnowNingOwitz
I wonder if Vail would be interested in Maple Valley....
I seem to read there’s a word “if” in the post you quote.
Yeah, call me condescending.
I think some people (not just you) are focusing a bit too much on the eastern resorts in the Peaks portfolio. While those are certainly nice and give Vail a probably pretty reliable income stream, don't overlook the mid-western and even smaller PA resorts near the DC area. Buying Peaks gives them access to skiers in numerous major metro areas. For Mt Snow/Hunter/Wildcat skiers here in the Northeast this may not be a big deal from a western perspective because we already have pretty decent sized mountains with pretty decent skiing. However the people skiing little hills in the mid-west now suddenly are getting access to much bigger resorts out west (and in the northeast) by virtue of becoming Epic. Those people (not the north eastern skiers) are the ones that are probably far more likely to suddenly want to plan trips to other Epic/Vail resorts. Don't think for a second that this wasn't a substantial factor in the Peaks acquisition.
I disagree. Once YoY comps become difficult I think Vail is likely to "expand" in all sorts of places many may view as unsuspected. Internationally is my #1 bet, for reasons that are turbo cynical even by my well-known highly-cynical standards.
I think the amoeba is done and I wouldn't be surprised at seeing a divestiture before another aquisition by Vail in the East.