Without a price hike, Vail Resorts added another venue to its Epic Pass on Monday: Australia’s Perisher Ski Resort, the largest ski area in the Southern Hemisphere.
The expansion stems from the Broomfield company’s $136 million deal for the 3,000-acre resort in New South Wales, which was announced Monday.
But while unlimited skiing in the Southern Hemisphere may drive some local season-pass sales, the motivation for the resort’s first international purchase was Australians, Vail Resorts CEO Rob Katz said.
“There aren’t that many U.S. skiers going to Australia to ski,” Katz acknowledged. “But on the other hand, there are huge amounts of Australians going to the U.S. And they tend to come for 10 to 14 days and travel in January, which is an off-peak time. … They’re one of the most lucrative markets.”
Adding Vail’s 11 resorts gives Australians — and Epic Pass holders — two full ski seasons. And it gives Vail an edge over rivals in Japan and Canada that compete for Australians who want to ski during their summer.
“For us, the goal for the acquisition is to bring more Australian skiers to our resorts, including our resorts in Colorado,” Katz said.
Perisher on Monday reopened sales for its Freedom Pass to let more Australians buy the $573.33 season pass, which now includes access to U.S. resorts next season, even though the resort sale won’t close until the end of April.
Katz also pointed out that Perisher makes money. Vail expects Perisher will earn $16 million before taxes and interest within the first 12 months after the sale closes, which Katz added, “is not as high as Vail or Beaver Creek but for the rest of the resorts in the country, it would be one of the bigger resorts in the U.S.”
Katz estimated about 1 million Australians travel to ski resorts in the U.S., Japan and Europe each year.
According to Denver International Airport figures, there were 34,000 passengers traveling between Denver and Australia last year. Statewide, about 42,000 visitors came from Australia. Top non-Denver airports were Aspen, Colorado Springs, Vail/Eagle and Grand Junction, said Laura Jackson, DIA’s senior aviation research director.
Colorado Ski Country, which promotes skiing at the 21 resorts other than Vail’s, said Australia tourists are important. “It is the No. 1 market at the moment,” public affairs manager, Patrick Byrne, wrote in an e-mail.
Figures from the U.S. Dept. of Commerce’s National Travel & Tourism Office put Australian visits to the U.S. at 1.2 million in 2014, up 9.9 percent from the prior year.
But while the number of Australian visitors to Colorado is much smaller, the area’s ski resorts are a large draw even though there are no direct flights between Denver and Australia, said Lydia Cheng, Asia Pacific market manager for the Colorado Tourism Office.
On a recent trip to Australia, Cheng said that in talking to travel agents and organizations there she found Colorado is a popular destination and the top two ski resorts mentioned were Vail and Aspen.
Partnerships with three resorts in France, Japan and Switzerland give Epic Pass holders five consecutive days at each ski area.
The Perisher purchase offers unlimited access to the Australian resort, which includes its 3,000 acres of skiable terrain, 47 lifts, seven mountain peaks, night skiing and 100 kilometers of cross-country trails.
Australian Tourists By The Numbers
146: Number of days Australians will plan their trip before leaving
14: Length of trip in days that Australians will travel
34: Percent of increase in seats airlines are offering this year in flights from Australia to the U.S. Comparably, Japan saw a decline.
1,276,124: Number of visitors from Australia to the U.S. in 2014, a 5.9 percent increase from the prior year
Source: U.S. Department of Commerce, Colorado Tourism Office
