Vail Resorts’ stock has declined recently due to a labor dispute affecting one of America’s top skiing destinations. The Park City Professional Ski Patrol Association, a union representing patrollers at the Utah mountain, went on strike last month. This work stoppage has led to complaints of long lines, closures, and delays from patrons on ski trips.
This situation has highlighted the consolidation of ski resorts in the U.S. under Vail and a few other companies. Vail’s association with a notable private equity firm has also added to the controversy, particularly in light of the issues at Park City, known as the largest U.S. mountain with a history of hosting the 2002 Winter Olympics.
The main request from the Park City patrol is an increase in base wages from $21 to $23 per hour. The patrol claims that wages have remained stagnant since 2022. Despite efforts to negotiate, Vail did not offer a counterproposal on wages or benefits when the strike began on Dec. 27.
Vail, which owns multiple resorts including Breckenridge, stated that it has raised Park City patrol wages by over 50% in the past four seasons. The average entry-level hourly wage for patrollers is $22.40, with the average patroller earning $25 per hour when factoring in incentives.
Mediation between Vail and the union resumed on Monday, but the stock has already suffered a decline as reports of conditions at the resort during the strike spread online. Share prices dropped more than 5% compared to the previous week.
Customers expressed frustration on social media over long lines and the high costs of their ski trips. As of Monday morning, only a fraction of trails and lifts were operational at Park City Mountain. The situation has sparked criticism towards the involvement of private equity in ski resorts, contributing to the discontent among consumers.
The dispute could potentially become a significant challenge for CEO Kirsten Lynch. Angry customers and investors have voiced their concerns online, highlighting the impact of the strike on the resort’s operations and reputation.
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