Vail Resorts Brings Back Former CEO
C-Suite Transitions
Some companies are finding that when the path ahead becomes uncertain, it helps to bring back the person who first mapped the trail. UnitedHealth Group recently did just that, bringing back former CEO Stephen Hemsley to navigate a rocky stretch as discussed in our last C-Suite Transitions article. Now, Vail Resorts is taking a similar turn.
As the mountains grow quieter in the off-season, big shifts are happening behind the scenes — none bigger than the return of Rob Katz to the helm of Vail Resorts. The industry giant is once again turning to its longtime leader as it faces growing scrutiny over guest experience, legal battles, and how well its once-revolutionary business model is holding up.
Vail Resorts (MTN): $155.17
Market Cap: $5.76B
EV: $8.60B
Key Insights
Vail Resorts (MTN) operates 42 premier ski resorts across the U.S., Canada, Switzerland, and Australia.
CEO Shake-Up: Kirsten Lynch was ousted as CEO and replaced by former chief Rob Katz, whose prior tenure (2006–2021) saw major growth, profitability, and portfolio expansion.
Strategic Reset: Katz’s return signals a potential strategic course correction amid investor dissatisfaction and skier backlash.
Customer Discontent: Rising lift ticket prices and overcrowded slopes have drawn criticism from the skiing community, denting brand loyalty.
Investor Pressure: Sluggish revenue growth and weak stock performance have amplified calls for leadership change and improved execution.
Guidance Cut: Vail lowered its full-year EBITDA forecast to $848M–$870M—just one week after reaffirming it—highlighting ongoing operational and demand pressures.
Company Profile
Vail Resorts, Inc., is a global leader in mountain resort operations. Through its subsidiaries, the company runs a network of premier ski destinations across the U.S. and internationally, offering a full-spectrum alpine experience.
Vail operates through three segments: Mountain, Lodging, and Real Estate.
Mountain Segment: The core of Vail’s business—destination resorts and regional ski areas—plus ski schools, on‑mountain dining, equipment rentals and retail, and real estate brokerage services.
Lodging Segment: Ownership and management of luxury hotels and condominiums (including the RockResorts brand), golf courses, and resort ground transportation; a blend of owned and managed units.
Real Estate Segment: Acquisition, development, and sale of resort‑adjacent properties.
Business Profile
Vail’s rise to global prominence was fueled by an aggressive acquisition strategy:
1990s–2002: From Breckenridge and Keystone to Heavenly, Northstar, and Kirkwood, Vail built its Colorado and Lake Tahoe foundation.
2015–2016: The Park City–Canyons merger created the largest U.S. ski resort, followed by the $1.1 billion purchase of Whistler Blackcomb.
2015–2019: Entry into Australia with Perisher, Falls Creek, and Hotham.
2022–2023: European expansion via stakes in Andermatt‑Sedrun and Crans‑Montana.
Across the U.S.: Triple Peaks (Okemo, Sunapee, Crested Butte), Stevens Pass, Peak Resorts (17 Midwest & Northeast areas), and Seven Springs (PA) rounded out the portfolio—powering the Epic Pass and smoothing seasonal revenue swings.
Back in the Driver’s Seat: Rob Katz Returns as CEO
In a move that caught many by surprise, Vail Resorts announced on May 27, 2025, that Rob Katz — the company’s longtime visionary and Executive Chairperson — is stepping back in as Chief Executive Officer. Katz replaces Kirsten Lynch, who stepped down from both her CEO role and Board seat after less than four years at the helm. While Lynch will remain in an advisory role during the transition, Katz will wear both hats as CEO and Chairperson, signaling a hands-on reset as Vail navigates mounting operational and reputational challenges.
The Katz Era
Rob Katz’s first tenure as CEO of Vail Resorts (2006–2021) marked a period of aggressive expansion and strategic clarity. He transformed the company from a five-mountain operator in Colorado into a global ski empire with 37 resorts across the U.S., Canada, and Australia. Katz’s playbook was clear: acquire, integrate, scale, and optimize.
His tenure not only redefined what a ski company could be but also positioned Vail Resorts as the benchmark for consolidation in the industry. From overhauling how resorts were managed to reshaping pricing strategies and building one of the most loyal customer bases through the Epic Pass, Katz turned Vail into the undisputed heavyweight of the modern ski world.
The Epic Pass
One of Katz’s most revolutionary moves was the introduction of the Epic Pass in 2008—a bold innovation that reshaped the economics of skiing. By offering multi-resort access at a significantly reduced price, Vail upended the traditional day-ticket model, boosted early-season cash flow, and locked in skier commitment well before snowfall.
The Epic Pass is at the core of Vail’s mountain operations business. It uses a subscription model to generate predictable upfront revenue, reducing the weather-related risks that typically plague the ski industry while fostering loyalty.
The Epic portfolio consists of:
Epic Pass: Unlimited access to 42 owned and partner resorts without restrictions.
Epic Local Pass: Lower-priced, with date restrictions.
Epic Day Pass: Allows pre-purchasing 1–7 days of lift tickets at a discount, encouraging early commitment.
Beyond the Epic Pass: Lift Tickets and Targeted Passes
In addition to pass products, Vail sells walk-up and advance-purchase lift tickets, which are key to capturing casual skiers and yielding high margins during peak times.
I was one of those high margin customers for Vail Resorts the first time I skied at one of their resorts and wrote the following about the experience in our December 2024 Special Situations Newsletter:
Last winter I went skiing with family and friends to Heavenly in South Lake Tahoe and the experience was remarkably smoother than other ski resorts I have been to, especially if you need to rent equipment for the day. The excellent customer service and facilities also came with sticker shock, considering day lift ticket prices matched the elevation of the mountain.
When looking at lift ticket prices after a storm hit the Lake Tahoe region right before the Thanksgiving holidays this year, I realized what most seasoned skiers have known all along about resorts like Heavenly, which is one of 42 mountain resorts owned by Vail Resorts (MTN). The game is to steer skiers towards buying an Epic season pass early in the season that provides access to multiple resorts across the U.S. and a few in Europe and Australia.
While more sensitive to weather and operational variability, lift ticket sales contributed $770.3 million in Q3 fiscal 2025, up 3.3% year-over-year, despite slight visitation declines. This growth was fueled by a 6.6% rise in effective ticket pricing and the acquisition of Crans-Montana in Switzerland.
Vail also markets various targeted season passes catering to specific demographics and regions — such as the Military Epic Pass, Northeast Value Pass, and Keystone Plus Pass. These broaden the customer base while maintaining premium positioning for core Epic offerings. This multifaceted approach deepens engagement and helps stabilize revenue across economic cycles and geographies.
Record Growth, But Emerging Trade-Offs
By the 2021–22 season, Epic Pass sales had surpassed 2.1 million units, driving a record 17.3 million skier visits. In 2023–24, Vail sold about 2.3 million Epic Passes—a 2% decline marking the first-ever unit sales drop.
While the Epic Pass fueled unparalleled growth, it also caused challenges. The surge in visitors led to overcrowded slopes, strained operations, and increasing friction with local communities.
Kirsten Lynch’s Tenure
Katz’s expansionist strategy wasn’t without backlash. Critics pointed to labor disputes, overcrowding, and a growing disconnect with local mountain communities. Tensions flared in places like Park City (Utah), Whistler (Canada), and Crested Butte (Colorado), where concerns around visitor volume, housing, and the erosion of local culture drew scrutiny.
Despite the friction, Katz was often viewed as a capable and transformative leader. When he stepped down as CEO in 2021 to become Executive Chairman, the baton passed to longtime executive Kirsten Lynch—who was tasked with preserving momentum while modernizing operations.
Kirsten Lynch focused on tech upgrades and improving employee compensation, including raising the minimum wage to $20/hour. Yet, under her leadership, Vail Resorts began to lose altitude. Epic Pass sales stagnated and then declined for the first time. Labor tensions culminated in a high-profile 13-day ski patrol strike at Park City during the 2024–2025 holiday season, leading to terrain closures and operational chaos.
Public perception faltered as core skiers complained of overcrowded slopes, inconsistent service, and declining resort maintenance. Criticism from investors followed. In early 2025, institutional shareholder Late Apex Partners openly called for Lynch’s ouster, branding the company “an evil empire” in the eyes of loyal skiers.
Park City Mountain ski patrol strike
Park City Mountain faced significant disruption over the 2023–24 holiday season when the Park City Professional Ski Patrol Association staged a 13-day strike from December 27 to January 8. The walkout—amid peak travel season—led to limited terrain openings, overcrowded slopes, long lift lines, and concerns over skier safety. Frustrated guests even filed a class-action lawsuit against Vail Resorts, which owns the mountain.
Park City Mayor Nann Worel publicly urged Vail to take responsibility, stating that as the resort is vital to the local community, the company had an obligation to resolve the labor dispute promptly.
The controversy added to growing investor pressure. In late January, investment firm Late Apex Partners—an investor in Vail Resorts—issued a sharp critique of the company’s leadership and strategic direction, calling for sweeping changes.
Check out our full article about Vail Resorts including over 60 sudden departures in the C-Suite ranks announced during the last month here:
https://www.insidearbitrage.com/2025/06/vail-resorts-brings-back-former-ceo-c-suite-transitions/