Please ensure Javascript is enabled for purposes of website accessibility

Will COVID-19 Affect Vail Resorts' 2021-22 Ski Season?

By Matthew Frankel, CFP® – Oct 10, 2021 at 2:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The pandemic is far from over, but how will it affect the ski business?

The COVID-19 pandemic has had a pretty dramatic effect on Vail Resorts' (MTN 1.77%) business. But what about the upcoming 2021-22 ski season? In this Fool Live video clip, recorded on Sept. 28, Millionacres editor Deidre Woollard and senior analyst Matt Frankel, CFP, discuss what effects the ongoing pandemic could have this year, and whether investors should be worried.

10 stocks we like better than Vail Resorts
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Vail Resorts wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of September 17, 2021

 

Deidre Woollard: So, one of the other things that is an ongoing concern is that Vail has announced that there are vaccination requirements and they are going to require masks indoors around food and beverage and things like that at the resorts. So shouldn't be a huge drag because most of the time people are outdoors, they're skiing and snowboarding and, enjoying the mountains, so you've got that. But there's still going to be that masking indoors could drag down some of the food and beverage, and that's one thing that may be a short-term concern.

Matt Frankel: They said that COVID is going to have an effect on the business for the foreseeable future.

Woollard: Yeah.

Frankel: What that means, we don't know. I mean, I don't want to get into the weeds on the vaccination requirements and things like that. But I really don't see it being that much of an issue for Vail's business. I mentioned European travels, they have to show vaccine cards to get on airplanes to come here. So I really don't think it will be that much of an issue for international tourists who want to go into Vail's properties. It's going to cost them some business, but whether it's really going to affect their business, I'm not sure.

The masks might hurt the restaurants. I think that's the top concern. I don't think the vaccines are the top concern when it comes to business wise. Masks might have something to do with it. I know I find it less convenient to go to a restaurant, especially with my little kids. Not necessarily for me. I don't mind putting mask on, my three-year-old does. I could see that being an issue especially with families. They might say, OK, we'll eat in our room.

It's going to have an effect and it really remains to be seen how long. I heard 500 different predictions on when the pandemic is going to end in paper down and things like that and they've all been wrong. Some come from me, some have come from other people, we've all been wrong. I don't want to pretend to be to have a personal ball to tell you when the effects are going to be long-term. But it's definitely going to have some effect and keep the business at somewhat below a normal level this ski season. I think I can definitively say.

Woollard: I would agree with that. The other challenge that is still kind of a wildcard is that Caldor fire in the Lake Tahoe area. It has started to affect some of the resorts. They still haven't put that thing out. It's far too soon to know exactly how much that's going to really impact things. But that's one more challenge that they're dealing with.

Matthew Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool recommends Vail Resorts. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Nearly 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Vail Resorts Stock Quote
Vail Resorts
MTN
$262.10 (1.77%) $4.56

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
371%
 
S&P 500 Returns
120%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.