Long lines at Park City Mountain due to strike negatively impact Vail stock.
- The ski patrol strike at Park City Mountain has resulted in complaints about long lines and delays at the popular winter sports destination.
- In the past five trading days, the stock price of Vail Resorts, the owner of Park City, has decreased by over 5%.
Recent labor disputes have caused a decline in shares of one of America's top skiing destinations.
The union representing ski patrollers at Park City Mountain in Utah went on strike last month, causing long lines and delays for ski trip patrons on social media.
The merger of several American ski resorts under Vail and other companies has brought attention to the issue. Additionally, Vail's past partnership with a prominent private equity firm has fueled anger among those affected by the collapse at Park City, which is known as the largest U.S. mountain by lift access and has a rich history, including hosting the 2002 Winter Olympics.
The Park City patrol's primary request is a raise in base wages from $21 to $23 per hour, which has been the union's position since 2022. On the first day of the strike on December 27, the patrol stated that Vail did not present a counterproposal to its demands regarding wages or benefits.
"The patrol stated on its Facebook page that it did everything possible to prevent the work stoppage and encouraged people not to buy lift tickets or spend at resorts during the strike. Its objective has been and remains to obtain a fair contract."
Vail, which owns Breckenridge and numerous other resorts, did not respond to CNBC's request for comment. Over the past week, shares fell more than 5%, and they dropped around 6% compared to a month ago.
Customers who are upset have posted videos of long lines on social media, while also mentioning the high cost of their ski trips. As of Monday morning, only 103 out of 350 trails and 25 out of 41 lifts were operational, according to Park City Mountain's live tracker.
X received a comment from a user stating that the longest lines they had ever seen were in that post, with no explanation given.
The involvement of private equity has been a source of criticism among American consumers, particularly regarding the high cost of ski resorts. Despite Apollo's divestment from its Vail stake in 2004, the role of private equity in the resort operator's history has been highlighted by those questioning the reasons behind the escalating prices.
Business News
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