The ski and snowboard season, just ending in the Northern Hemisphere, has been a vivid illustration of the havoc climate change can wreak on companies like Vail Resorts that rely on standard weather patterns. The West experienced an apocalyptic level of snow, making ski destinations like Tahoe nearly impossible to reach. Meanwhile, ski resorts in Eastern U.S. and Europe faced snow droughts due to a warm winter, fanning fears that the sport could eventually disappear from all but the tallest mountains in some markets.
Under Kirsten Lynch—Vail Resorts' CEO since November 2021—the company is responding to the climate challenge by diversifying geographically to reduce vulnerability to any one area's weather. For instance, Vail Resorts, which operates 41 resorts such as Breckenridge in Colorado, Whistler Blackcomb in British Columbia, and Stowe in Vermont, bought the Andermatt-Sedrun resort in Switzerland to plant a ski pole in the European market last August. Lynch also has ambitions to expand the Vail Resorts empire into Japan and deeper into the U.S.
Geographic diversity is also meant to be a key revenue driver. Lynch explains that expanding Vail's network of resorts to different markets will entice more outdoor enthusiasts to its Epic Pass program, which has users pay for a season upfront but gives them access to other resorts in Vail's portfolio. It's handy if one resort is low on snow. Plus, wider use of the pass has had the added benefit of reducing revenue volatility.
This interview has been edited and condensed for clarity.
Fortune: The Western U.S. has had an insane amount of snow this season, while parts of the East and Europe have had alarmingly low amounts. Do you worry that climate change could one day put you out of business or complicate managing this company?
We take climate change seriously, and our business strategy helps to mitigate the volatility. We are intensely focused on advanced commitment (season passes valid across Vail's resorts), like a subscription model for skiing. We try to get as many of our guests subscribed to our resorts before the season begins with a non-refundable commitment. That helps us maintain stability for our company, employees, and communities.
What about taking on climate change itself?
We have a bold commitment to hit net zero by 2030, so that's net zero emissions, landfill waste, and habitat impact. And when we make investments, we are focused on efficient snowmaking and things that can help mitigate climate change and variability in the weather. Having guests commit in advance and geographic diversity also helps. If our guests in the Bay Area don't feel like going to Tahoe because of too much or too little snow, they have other choices like Park City (Utah), Colorado, or Whistler.
Your portfolio is now up to 41 resorts in the U.S., Canada, Australia, and Switzerland. What is your M&A strategy as you look to further diversify geographically?
If you look at a map of all our resorts, specifically in North America, you see we're very connected to major metropolitan markets along with regional resorts. The idea is to connect them all on the pass. We are also focused on Europe and very much focused on Asia, where we don't have anything right now. Asia is a big opportunity since it creates a network with Australia.
Snowmaking can be a solution, but some people perceive it as harmful to the environment. Are you worried this notion could take hold in consumers' minds?
We always have to do a good job helping people understand how snowmaking works and its efficiency. The science of snowmaking is evolving, so it uses less water now, and snowmaking is largely non-consumptive. And if you have skilled and talented snowmakers, they know how to make it an incredibly enjoyable experience where you wouldn't even know the difference.
Your portfolio includes famous destinations like Vail and more modest locations like Wilmot in Wisconsin. Why not just focus on the big resorts?
Most people don't take up this sport by getting on a plane and going to Vail Mountain. They start by skiing in their local area. We acquired those local ski areas because that's where it all begins. I was a downtown Chicago city kid, and there is no way I would be in Colorado today or CEO of Vail Resorts if I hadn't been introduced to skiing at a small ski area in Wisconsin. Those little ski areas play a critical role in the future growth of this sport.
Is skiing gradually becoming a sport for the wealthy and less for the middle class?
The sport is not particularly diverse at this time. I strongly believe that this sport's future rests on inclusion because the populations growing the most are not engaged in it right now. So how do we create a more welcoming and inclusive environment? It isn't as basic and simple as pricing. It is also the culture of the industry.
So what are you doing about it?
We're doing things to create better access. One is purchasing and acquiring these local ski areas near major markets with significantly lower price points to introduce guests to the sport. The other thing is partnering with nonprofits in New York City, Boston, Chicago, Detroit, and Minneapolis to introduce kids to the mountains.
Get to know Lynch:
- Lynch grew up in downtown Chicago and learned to ski at Wilmot Mountain Ski Resort in Wisconsin, a facility Vail Resorts bought in 2016.
- When Lynch left PepsiCo in 2011 to live out her long-time dream of moving to Colorado, she hadn't lined up a job. A few months after arriving, she met the then-CEO of Vail Resorts, who named her marketing chief.
- Lynch began her career at Ford Motor Co., and part of her training consisted of taking apart a car engine and putting it back together.
