Vail Resorts F1Q09 (Qtr End 10/31/08) Earnings Call Transcript

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2008-12-09 12:42:15.0

Tags: Colorado, Call Transcript, Earnings, Booking, Seeking Alpha, Vail Resorts Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from the line of Hayley Wolff with Rochdale Securities.

Hayley Wolff - Rochdale Securities

A couple of questions -- first, can you just talk about what you have seen sort of season to date through Thanksgiving, and then into December on visitation? And then related to that, can you talk about the bookings patterns of late as the snows come, you get closer to Christmas, what kind of holes do you have during certain peak periods this winter?

Robert A. Katz

Sure. I’m not going to give an update on visitation. I think that as Jeff mentioned, we are going to be giving an update shortly after the Christmas/New Year’s holiday period and so I think we are going to hold all commentary on visitation until then, and I think that -- I think our hope in doing that is to really provide that information much quicker than we did in previous years.

On the booking patterns, what I would say is it’s very hard for us to really make any conclusions based on the short-term bookings. We have seen a pick-up in bookings in a number of different areas after we started getting some pretty significant snowfall last weekend, or two weekends ago. But again, we are talking about days and blips. I think that -- we’re not drawing any conclusions yet from it but obviously getting our only season of snow, which right now in Colorado is -- puts us in a strong position, especially relative to Utah, is something that is obviously a positive.

Hayley Wolff - Rochdale Securities

When you look at your mix of business, you’ve always talked about sort of 60% destination, 40% front range. When you think about your destination, what percent of that actually is kind of more of a drive to skier? And then on the pass numbers, it looks like you didn’t see that big of a decline in the Colorado pass, Summit pass buyer, so who bought the epic pass? Can you give us a little color on that buyer?

Robert A. Katz

I don’t have off the top of my head the exact number on the drive-to market. I think what I would say though is I think we would expect two things -- one is, based on the current trends as we are looking at them, I think we would expect our mix of business to shift this year from what it was last year and obviously Colorado and local to go up as a percentage of our total business. I think when we look at the end of the year and we can probably provide more color at that point, I think we will also see some benefit in some of the drive-to markets, except that there’s also -- that most of that drive market is going to Keystone and Breckinridge, probably guests at the lower end of the income scale. So again, I think we are going to have multiple factors which are going to be contributing to what we see from the drive-to market again outside of Colorado. No question inside of Colorado we are going to see that business grow.

 

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