Vail Resorts (MTN -0.35%)announced Monday that, because of SARS-CoV-2 coronavirus-related closures, it will offer credit for current pass holders who purchase permits for the upcoming 2020-2021 season.
These credits will range from 20% to 80% of the price of the new season's pass, depending on how often the 2019-2020 pass was used. Those who did not utilize it at all are to receive the maximum discount, while people who used at least five days on the pass will get the minimum.
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For the company's frequency-based permits, such as the Epic Day Pass and Edge Card, Vail Resorts will provide credits for every unused day. As with the season pass, the maximum effective discount will be 80%.
All discounts apply to those who buy 2021-2021 permits by Sept. 7.
Additionally, all season passes will carry Epic Coverage, a pass insurance policy that is provided free of charge. It guarantees refunds in the event of qualifying resort closures, or for "personal circumstances" such as injuries, job loss, and other unforeseen circumstances.
Because of these new policies, Vail Resorts is delaying the recognition of around $118 million in deferred season pass revenue, in addition to $3 million in related, deferred costs. These were to have been booked in Q1 of the current fiscal 2020 but will be pushed back into Q2 and Q3.
Of the passes in general, Vail Resorts said:
Our advanced commitment products continue to be our primary focus by delivering value to our guests, resulting in increased guest return rates and guest satisfaction to drive the long-term stability and growth of our business.
Vail Resorts shares well exceeded the gains of the wider stock market and many consumer goods stocks on Monday, rising by almost 11%.
