Vail Resorts acquired Whistler Blackcomb in British Columbia in August 2016.justa jeskova

In 1962, a pair of World War II veterans got together to build a small ski area along Gore Creek on Vail Mountain in Central Colorado, opening with a small gondola and two chair lifts. That operation, known today as Vail Resorts, is now the largest ski company in the world with a market cap of $10 billion.

Long regarded as one of the most desirable mountain destinations in the world, Vail Resorts over the past two decades has grown its footprint well beyond Colorado through strategic acquisitions. One of the largest came last fall when Vail acquired Peak Resorts and its 17 ski areas across the Midwest and New England. 

At the core of its recent success has been a reliance on data, both for innovative CRM-based marketing and enhancements to its guests’ experiences.

In 2006, Vail Resorts board member Rob Katz took on the chief executive role and began looking for a different way of doing business.

“Early on we looked at challenges our industry was facing — how we could protect the business from the ups and downs of weather,” he said. “The industry had oriented itself around guests buying lift access in real time [same day they were skiing]. Maybe there was a way to provide a discount to our guests if they brought stability to the broader community.”

That thinking led to the Epic Pass in 2008, a deeply discounted season pass offering skiing or snowboarding at multiple resorts that was sold only preseason. In the past, most season passes were expensive and perceived to be only for locals. That paradigm is changing.

Epic Pass triggered a wave of countermeasures from competitors, most being alliances between resorts to create comparable programs. Katz has welcomed the competition as a means of growing the entire industry as opposed to just grabbing more market share.

“The sense we had was that the escalation would have happened faster,” he said. “But at that time there were a lot of resorts who didn’t feel it was the right way to go. We’ve been very happy to see other passes so we’re not the only one carrying the load.”

As the Epic Pass picked up momentum, Katz saw the additional benefit it provided — first-party data.

“When you bought the pass, you gave us your information,” he said. “Resorts really didn’t know who was skiing and when. It became clear that to market the pass and the broader experience, it just couldn’t be done in the traditional way.”

HARNESSING THE DATA

Vail’s ability to fully leverage its newfound data assets came with the hiring of a new chief marketing officer in 2011. Kirsten Lynch, longtime CMO of the Quaker Oats division of PepsiCo, made a lifestyle decision to move to Colorado. She and Katz came across each other.  

“Kirsten was a huge turbo boost,” Katz said. “She had experience from larger marketing companies and knew how to drive decisions. We were anecdotal marketers. Then we made this big pivot to understanding our guests better — personalizing the message.

“My consumer packaged goods marketing background provided a foundation of strong analytical skills and an appreciation for how data can really enable a company to be consumer-centric,” Lynch said. “So while the vision for Epic Pass has remained consistent, we have been able to unlock growth through guest segmentation, targeting and personalization.”

To make trip decisions today, travelers have a wealth of data at their disposal.

“A guest’s decision to visit one of our resorts is a high-involvement purchase decision based on their desire to experience something incredible, which is unique to every individual,” Lynch said. “It is a complex purchase, taking months in a typical guest journey, including dreaming, planning, and booking, involving airfare, lodging, lift tickets or a pass, ski school, dining and more.”

The use of first-party data allows Vail to draw the guest into an experience that is personally relevant to them. Lynch utilizes predictive modeling to segment, target and influence guest behavior. It drives revenue but also long-term loyalty.

Technology use is changing the guest experience, even at snowy outdoor venues. Vail looked at Apple stores, where there are no cashiers, and started asking, “Why do we need a ticket window?” While those windows do still exist, roving staff now meet and greet arriving guests face-to-face for mobile ticket fulfillment.

“Everyone in the industry should look at other people and what they’re doing,” Katz said.

vail resorts

That approach led Vail to watch how other companies were leveraging artificial intelligence to provide real-time information to guests. Last season, Vail Resorts introduced Emma as the first digital mountain assistant. Emma is a text-based interactive response system where guests can send real-time questions about ski runs, lift line waits, restaurants and more.

“I love Emma,” laughed Lynch. “It’s been fun to watch her get smarter as more guests interact with her.”

Emma also is directly connected with EpicMix, Vail’s mobile app that provides on-mountain information. EpicMix, launched in 2010, also tracks ski data for users including number of runs and vertical feet skied — both important benchmarks to skiers — and rewards them with digital pins and other incentives, all the while providing Vail with information on their guests’ preferences.

CORPORATE RESPONSIBILITY

While the Epic Pass may have helped Vail’s business stability against weather, long-term climate change remains an important focus for the company. Katz has set a “Commitment to Zero” target of 2030 for Vail Resorts to be net zero in its impact on the environment. As an example, Vail Resorts has invested in a wind farm in Nebraska that will contribute more to the grid than the company’s entire North American consumption when it comes online this year.

In its resort towns, Vail also has sought to be a good community partner. Its EpicPromise program contributed $8.6 million in 2019 to sustainability or youth causes through local nonprofits.

But amid the buzz about Epic Pass and the innovations in use of data, Katz takes the most pride in what his company has done in developing a leadership pipeline.

“When I came in as CEO I saw a mismatch. There was so much passion in the industry, but it wasn’t providing a pathway of traditional approaches to move people up,” he said. “Today, I see the leaders of our 37 resorts, including eight women, and most of them came through our own talent pool. That holistic system we’re building will really benefit future generations.

“As big as the Epic Pass has become, and I’m proud of that, this piece will be our company’s biggest legacy.”