Shares of ski mountain resort operator Vail Resorts (MTN) - Get Vail Resorts, Inc. Report dropped Wednesday after the company announced that it was reducing all pass prices by 20% for the 2021-22 season.
The Broomfield, Colorado-based company said it was delivering on its commitment of "epic for everyone" by reducing prices across the board by 20% for passes that are "already regarded as the best value" in the industry.
"The ski industry, our company and skiers and riders everywhere just navigated the most challenging season we have ever encountered. Because of the growth and loyalty of our pass holders, we were able to ensure this season was a success, with full operations across our 34 North American resorts, even amid a pandemic," said CEO Rob Katz.
The Epic Local Pass is now available for $583, down from $729 last season, while the full Epic Pass is now priced at $783, down from $979 last season.
The reset takes the pass prices back to levels last seen during the 2015-2016 ski season. The company has added 32 resorts to its portfolio since it launched its Epic Pass tickets 13 years ago while investing more $1.5 billion into its guest experiences over that time.
The Epic Day Pass, which provides the same ski access as the longer passes but for one to seven days, was lowered to $87, compared to a $219 lift ticket previously. Single day passes will now go for as low as $67.
"The new prices announced today not only provide value to existing skiers and riders, but we also believe they will contribute to the growth and vitality of our sport as we bring new people and higher engagement into the industry, which we think is imperative," said Katz.
Investors weren't as convinced, sending Vail shares down 5.7% to $282.22 a share.