--:-- Ryan Knudsen: Welcome to The Journal, our show about money, business, and power. I'm Ryan Knudsen.
--:-- Jessica Mendoza: And I'm Jessica Mendoza.
--:-- Ryan Knudsen: It's Wednesday, February 5th. Today, we're talking about Vail Resorts, the king of the mountain. But recently, the ski company has been facing issues with overcrowding and labor disputes. Joining me is Allison Pohle, a WSJ travel reporter who's been covering Vail Resorts. Allison, thanks for being here.
--:-- Allison Pohle: Thanks for having me, Ryan.
--:-- Ryan Knudsen: So, Allison, let's start with the basics. Vail Resorts is a behemoth in the ski industry, with 42 resorts around the world. But what's behind its success?
--:-- Allison Pohle: Well, Ryan, Vail Resorts has been able to revolutionize the ski industry with its Epic Pass. It's a season pass that allows skiers to access multiple resorts for a fixed price. And it's been incredibly popular.
--:-- Ryan Knudsen: That's right. I do ski, and I've seen the Epic Pass in action. But it's not just about the pass itself. Vail Resorts has also been buying up smaller ski resorts and putting them on the Epic Pass. So, it's become a bit of a monopoly.
--:-- Allison Pohle: Exactly. And that's part of the problem. Vail Resorts has become so big that it's started to lose touch with its customers. The Epic Pass used to be a great deal, but now it's become exorbitantly expensive. And the company's been raising the price of a single-day pass, which makes the Epic Pass look like an even better deal in comparison.
--:-- Ryan Knudsen: That's right. I remember when I first started skiing, you could just walk up to the window and buy a day pass for a reasonable price. But now, it's become almost impossible to afford. And it's not just about the cost. The crowds at Vail Resorts' resorts have become unbearable.
--:-- Allison Pohle: Yeah, that's right. The Epic Pass has made Vail Resorts' resorts some of the most crowded in the industry. And it's not just the crowds that are the problem. The company's also been struggling with labor disputes. Just last month, ski patrollers at Park City, Utah, went on strike over wages.
--:-- Ryan Knudsen: That's right. And it's not just Park City. There have been issues at Vail Resorts' other locations as well. Crested Butte and Breckenridge have also had labor disputes.
--:-- Allison Pohle: Yeah, it's become a bit of a crisis for the company. And it's not just the labor disputes that are the problem. Vail Resorts' reputation has also taken a hit. The company's been accused of making skiing inaccessible to people who can't afford it.
--:-- Ryan Knudsen: That's right. And it's not just the customers who are unhappy. Vail Resorts' shareholders are also starting to get nervous. The company's stock has dropped by half since its peak at the end of 2021.
--:-- Allison Pohle: Yeah, it's a tough time for Vail Resorts. But the company's not giving up yet. They're trying to get customers to spend more on ski lessons and gear rental, and they're looking to expand their footprint in Europe.
--:-- Ryan Knudsen: That's right. And they're also cutting costs and shrinking their corporate workforce by 14% over the next two years.
--:-- Allison Pohle: Yeah, it's a big change for the company. But it remains to be seen whether it will be enough to turn things around.
--:-- Ryan Knudsen: Well, thanks for joining me, Allison. It's been great talking to you.
--:-- Allison Pohle: Thanks, Ryan. It's been great.
--:-- Ryan Knudsen: That's all for today. Wednesday, February 5th. The Journal is a co-production of Spotify and The Wall Street Journal. Thanks for listening.
--:-- [Break music plays]
--:-- Ryan Knudsen: And now, a word from our sponsor. Are you a small business owner? Do you need insurance? The Hartford can help. With decades of experience insuring millions of unique small businesses, they can help you find the right coverage for your business. Get a quote or find an agent today at thehartford.com slash smallbusiness.
--:-- [Break music continues]
--:-- Ryan Knudsen: And now, a message from our sponsor. Imagine being 12 years old, already having 30 bone fractures, and wondering, why can't I just play like other kids? I'm Leanne, and I was diagnosed with brittle bone disease. Now, I'm running the Bank of America Chicago Marathon for Lurie Children's. So every kid can just be a kid. Join Bank of America in supporting Leanne's cause. Give if you can at bfa.com slash support Leanne.
--:-- [Break music continues]
--:-- Ryan Knudsen: And now, a message from our sponsor. Burlington is your destination for deals, brands, and quality items. With new deals every time you visit, you'll never want to go anywhere else. Burlington. Deals. Brands.
--:-- [Break music continues]
--:-- Ryan Knudsen: And now, a message from our sponsor. On Tuesday, February 11th, tune in to NBC for the series premiere of On Brand with Jimmy Fallon. Jimmy Fallon and Bozema St. John host a competition show where creatives from all walks of life battle it out to impress the world's biggest brands. It's a huge opportunity. It's the battle for the next big idea. Don't miss it.
--:-- [Break music continues]
--:-- Ryan Knudsen: And now, back to the show. We're talking about Vail Resorts and its struggles with overcrowding and labor disputes. Allison, what do you think is the root of the problem?
--:-- Allison Pohle: Well, Ryan, I think it's a combination of factors. Vail Resorts has become so big that it's lost touch with its customers. The Epic Pass used to be a great deal, but now it's become exorbitantly expensive. And the company's been raising the price of a single-day pass, which makes the Epic Pass look like an even better deal in comparison.
--:-- Ryan Knudsen: That's right. And it's not just about the cost. The crowds at Vail Resorts' resorts have become unbearable.
--:-- Allison Pohle: Yeah, that's right. The Epic Pass has made Vail Resorts' resorts some of the most crowded in the industry. And it's not just the crowds that are the problem. The company's also been struggling with labor disputes.
--:-- Ryan Knudsen: That's right. And it's not just Park City. There have been issues at Vail Resorts' other locations as well. Crested Butte and Breckenridge have also had labor disputes.
--:-- Allison Pohle: Yeah, it's become a bit of a crisis for the company. And it's not just the labor disputes that are the problem. Vail Resorts' reputation has also taken a hit. The company's been accused of making skiing inaccessible to people who can't afford it.
--:-- Ryan Knudsen: That's right. And it's not just the customers who are unhappy. Vail Resorts' shareholders are also starting to get nervous. The company's stock has dropped by half since its peak at the end of 2021.
--:-- Allison Pohle: Yeah, it's a tough time for Vail Resorts. But the company's not giving up yet. They're trying to get customers to spend more on ski lessons and gear rental, and they're looking to expand their footprint in Europe.
--:-- Ryan Knudsen: That's right. And they're also cutting costs and shrinking their corporate workforce by 14% over the next two years.
--:-- Allison Pohle: Yeah, it's a big change for the company. But it remains to be seen whether it will be enough to turn things around.
--:-- Ryan Knudsen: Well, thanks for joining me, Allison. It's been great talking to you.
--:-- Allison Pohle: Thanks, Ryan. It's been great.
--:-- Ryan Knudsen: That's all for today. Wednesday, February 5th. The Journal is a co-production of Spotify and The Wall Street Journal. Thanks for listening.
