Viad Corp (VVI): PESTLE Analysis [Nov-2025 Updated]

You're looking at Viad Corp (VVI) and trying to figure out if the tailwinds from the 'experience economy' (Pursuit) can outrun the headwinds hitting corporate events (GES). Honestly, the 2025 landscape is defintely a battleground: while post-pandemic demand for unique outdoor travel is surging, pushing Pursuit's revenue potential, you still have to contend with corporate budget tightening and geopolitical stability issues that directly suppress GES's trade show business. We need to map how stricter land-use policies and the rise of virtual event platforms are fundamentally reshaping Viad's dual-segment reality, because the risks and opportunities aren't evenly distributed.

Viad Corp (VVI) - PESTLE Analysis: Political factors

Global trade show and event restrictions impact GES revenue.

The most significant political factor impacting Viad Corp's structure in 2025 was the strategic divestiture of its Global Experience Specialists (GES) segment. Face-to-face events, GES's core business, were highly vulnerable to government-imposed restrictions, which created significant revenue volatility. The regulatory uncertainty and high operating leverage of the events business ultimately drove the decision to sell. Viad Corp completed the sale of GES to Truelink Capital on December 31, 2024, for a total purchase price of $535 million, with $510 million payable at closing.

This transaction, while a business decision, was a direct response to the political and health-related restrictions of the preceding years, allowing the remaining entity-now focused on Pursuit Attractions and Hospitality, Inc.-to become a pure-play leisure company less exposed to sudden government-mandated shutdowns. The proceeds were used to retire debt and enhance liquidity, which totaled $274.4 million at the end of Q3 2025, providing a strong balance sheet for the newly focused company.

Government land use policies affect Pursuit's national park operations.

Pursuit's business model is fundamentally tied to government land use and concession policies, particularly with the U.S. National Park Service and Canada's Parks Canada. These policies dictate the terms, duration, and capital investment requirements for operating lodges, attractions, and services within iconic, high-barrier-to-entry locations like Glacier National Park in the U.S. and Jasper National Park in Canada.

Success in this segment requires a long-term, politically stable relationship with regulatory bodies. For instance, Pursuit's 2024 acquisition of the Jasper SkyTram included a renewable long-term lease with Parks Canada that has nearly 30 years remaining, providing revenue stability that is rare in the hospitality sector. Pursuit is also required to invest significant capital into its properties to maintain concessions, with approximately $38 million to $43 million budgeted for organic growth capital expenditures in 2025 alone, including a large-scale refresh of the Forest Park Hotel Woodland Wing in Jasper National Park.

Here's the quick math: Government policy creates a high barrier to entry, but demands high capital investment in return.

US-Canada regulatory differences complicate cross-border business.

Operating a unified business across the U.S. and Canadian borders-as Pursuit does with its Glacier, Banff, and Jasper collections-creates inherent regulatory complexity. While the United States-Mexico-Canada Agreement (USMCA) provides a framework, new political actions still create friction and compliance costs.

• Trade and Tariffs: The general climate of US-Canada trade in 2025 is marked by uncertainty, with new tariffs being threatened or implemented on various goods, which can increase the cost of materials and supplies for Pursuit's lodges and retail operations.
• Investment Scrutiny: Canada's revised Investment Canada Act introduced 'economic security' as a core criterion for evaluating foreign direct investment (FDI), which could add procedural delays and costs for future Pursuit acquisitions or major capital projects in Canada.
• Securities Regulation: The U.S. Securities and Exchange Commission (SEC) is considering amendments to the 'foreign private issuer' (FPI) definition, which could potentially impose stricter U.S. reporting requirements on Pursuit, a Canadian-heavy operation listed on the NYSE.

Geopolitical stability defintely drives consumer travel confidence.

Geopolitical stability is a direct driver of Pursuit's revenue, especially for its international and long-haul leisure travel market. Global conflicts, such as those in Eastern Europe and the Middle East, create a climate of 'weaponized uncertainty' that impacts long-distance travel planning. This is a real risk.

While global tourism showed a rebound, with international trips up 5% in Q1 2025 compared to 2024, the trend favors shorter, more affordable trips closer to home. This shift benefits domestic U.S. and Canadian travel, but it also means Pursuit must compete harder for the high-end, long-stay international traveler. The political climate also influences foreign exchange rates, which can make a U.S. vacation more expensive for European travelers, or a Canadian vacation more expensive for Americans, directly impacting booking decisions.

Viad Corp (VVI) - PESTLE Analysis: Economic factors

You're looking at Viad Corp, but honestly, you're now looking at Pursuit Attractions and Hospitality, Inc. (PRSU). The sale of the GES business for $535 million was completed on December 31, 2024, making the economic picture for the company a pure-play on experiential travel. The risk profile has fundamentally shifted from cyclical corporate marketing spend to consumer discretionary leisure travel. Still, the macro economy is a factor, and we need to map the risks to the new structure.

Inflationary pressure increases labor and material costs for both segments.

While the GES segment is gone, the remaining Pursuit business is highly exposed to inflation, particularly in its 'Refresh, Build, Buy' strategy. Labor and material costs are a direct hit to margins and capital expenditure (capex) budgets. For instance, global construction cost inflation is forecast to rise between 5% and 7% in 2025. This directly impacts the cost of major projects like the large-scale refresh of the Forest Park Hotel Woodland Wing in Jasper National Park and the repositioning of the Grouse Mountain Lodge in Whitefish, Montana.

Here's the quick math: if Pursuit's planned 2025 growth capex of $38 million to $43 million faces a 5% inflation rate, that's an extra $1.9 million to $2.15 million in cost overruns, which cuts into the efficiency of that investment. Plus, the hospitality business relies on a large service workforce, and wage inflation remains a persistent pressure across North America.

Corporate budget tightening reduces spending on large-scale GES events.

To be fair, this is now a legacy risk. The sale of GES means Viad Corp (now Pursuit) is no longer directly exposed to the cyclical nature of corporate exhibition and event marketing budgets. Companies tightening their belts and reducing spending on large-scale trade show booths or experiential marketing activations no longer affects Pursuit's revenue. The company is now insulated from that specific B2B economic cycle, which was a major source of volatility in the past.

Interest rate hikes slow capital investment in new Pursuit attractions.

Sustained high interest rates certainly raise the cost of debt, which directly impacts the hurdle rate for new capital projects. However, Pursuit is in a strong position to manage this risk. The company's total liquidity was $274.4 million as of September 30, 2025, and its net leverage ratio was exceptionally low at just 0.7x, which is well below its target range of 2.5x to 3.5x. This means they have substantial financial flexibility.

The low leverage and expanded $300 million revolving credit facility, extended to September 2030, provide a buffer. They can fund a significant portion of their $38 million to $43 million 2025 growth capex internally, or borrow at favorable terms due to their strong balance sheet, somewhat neutralizing the immediate impact of general interest rate hikes on their ability to accelerate their 'Refresh, Build, Buy' strategy.

Consumer discretionary spending shifts directly affect ticket and event sales.

This is the primary economic driver for Pursuit. The good news is that the shift in consumer spending has been toward experiences over goods, which is a tailwind. Pursuit's Q3 2025 revenue of $241.0 million (up 32.2% year-over-year) reflects this strong demand. The company has been able to successfully push pricing, which is a key defense against inflation.

Look at the data from Q2 2025: attraction ticket prices were up 11% and lodging Revenue Per Available Room (RevPAR) was up 9% on a same-store basis outside of the wildfire-affected Jasper properties. What this estimate hides, though, is the risk of a deep recession. If unemployment rises sharply, even the affluent leisure travelers who visit iconic destinations will cut back, and that pricing power will vanish. For now, the trend is your friend, but it's a risk you must defintely monitor.

The company's performance metrics show a strong ability to manage this economic environment:

Next step: Operations should continue to focus on yield management-dynamic pricing and cost discipline-to maintain the 49% adjusted EBITDA margin achieved in Q3 2025.

Viad Corp (VVI) - PESTLE Analysis: Social factors

Post-pandemic demand for unique, outdoor 'experience economy' travel boosts Pursuit.

You and every other investor have seen the data: people are prioritizing experiences over things, and that trend is accelerating into 2025. Pursuit's entire business model is built on this 'experience economy,' and it's paying off. Global travel and tourism is projected to reach nearly $956 billion in revenue this year, growing at an annual rate of 3.9%. This isn't just a rebound; it's a fundamental shift in consumer spending, especially toward purposeful and outdoor activities. Pursuit's Q3 2025 results are the clearest evidence of this tailwind, showing a revenue jump of 32.2% year-over-year to $241.0 million. That kind of growth is defintely not accidental; it's a direct response to a social craving for authentic, one-of-a-kind experiences in iconic destinations.

Hybrid work models change demand for large, in-person corporate events.

The rise of hybrid work has fundamentally altered the corporate events landscape, driving Viad Corp's strategic decision to divest its GES business for $535 million. The need for massive, traditional trade shows is being replaced by a demand for smaller, high-impact gatherings. While the former GES business faced the challenge of hybrid events growing in popularity by 20% in 2024, the remaining Pursuit segment actually benefits from the new purpose of corporate travel. Companies are now using in-person events less for information dissemination and more for team-building and connection-exactly the kind of unique, destination-based experiences Pursuit offers. This social shift validated the move to focus solely on the higher-margin, more resilient experiential travel market.

Increased focus on local and sustainable tourism influences Pursuit destination choices.

Honesty, today's travelers, particularly younger demographics, care deeply about where their money goes and the environmental impact of their trips. This focus on sustainable tourism is a critical social factor. Pursuit's portfolio, with properties embedded in national parks like Glacier National Park and Jasper National Park, is inherently aligned with this trend. The company has backed this up with action, investing $5 million in renewable energy projects in 2024 to reduce its carbon footprint. This commitment resonates with the 73% of young adults who prefer active, outdoor adventures, such as hiking, over traditional nightlife. It's a competitive advantage when you can offer both a unique experience and a demonstrable commitment to the environment.

Demographic shifts drive demand for personalized, curated travel experiences.

The core of the social shift is personalization. Millennials and Gen Z are now the most influential travel demographics, and they are demanding tailored, unique, and often 'off-the-beaten-path' trips. Over 50% of these younger travelers prefer less-mainstream locales. Pursuit is responding by curating its portfolio and upgrading its assets to target the mass affluent leisure traveler. Here's the quick math on how they're executing this strategy in 2025:

The company is not just resting on its national park locations; it's actively investing to meet the higher expectations of these travelers. For instance, 83% of Millennials and Gen Z are even finding Generative AI useful for booking, which means the digital experience and ability to offer a highly personalized itinerary are now table stakes. Pursuit's focus on high-margin attractions and lodging, like the Tabacón acquisition, shows a clear understanding of this demographic shift.

What this estimate hides is the execution risk on all those property refreshes and integrations, but the capital allocation is clear. They are positioning themselves as a premium operator in a growing segment.

Next Step: Strategy Team: Analyze the Tabacón integration plan to ensure the acquired luxury experience meets the personalized demands of the mass affluent traveler by Q1 2026.

Viad Corp (VVI) - PESTLE Analysis: Technological factors

Virtual and hybrid event platforms compete with GES's physical trade shows.

You need to understand that Viad Corp is now a pure-play attractions and hospitality company, having completed the sale of its Global Experience Specialists (GES) business to Truelink Capital at the end of 2024. The company will trade as Pursuit Attractions and Hospitality, Inc. (PRSU) in 2025.

Still, the rise of virtual and hybrid events remains a key technological competitor, vying for the same corporate and leisure spending that Pursuit's attractions target. The new, standalone GES continues to offer comprehensive services for both live and virtual events, meaning the technology that enables remote participation is still a major factor in the broader experiential market.

The core risk here is that corporate clients, even for team-building or sales incentives, can opt for a high-quality, lower-cost virtual event over a physical trip to one of Pursuit's iconic destinations. That means every dollar spent on a virtual event is a dollar not spent on a room night or attraction ticket at a property like the FlyOver attractions or the Sky Lagoon. You have to make the in-person experience defintely worth the premium.

AI-driven personalization tools enhance Pursuit's booking and guest experience.

Artificial Intelligence (AI) is moving beyond simple chatbots and is becoming a critical tool for hyper-personalization, which is directly applicable to Pursuit's high-margin, unique assets. Businesses that master advanced personalization techniques are projected to see a 10-15% increase in revenue by the end of 2025.

For Pursuit, this means leveraging AI to create a seamless, tailored guest journey. The technology analyzes real-time data-like browsing history, purchase patterns, and attraction wait times-to push contextually relevant offers. For example, a guest who booked a three-night stay but hasn't booked an attraction could receive a personalized, time-sensitive offer for the Glacier Skywalk or a specific dining experience. This focus on the 'care of one' is how you drive higher revenue per visitor and increase customer loyalty.

Digital ticketing and contactless payment systems are now standard for events.

The shift to digital ticketing and contactless payments is no longer an innovation; it's a baseline expectation, especially in the post-pandemic travel and events world. This technology is crucial for optimizing the on-site experience at Pursuit's 14 world-class attractions.

The market scale is immense: the total transaction value for digital ticketing globally is estimated at $1.47 trillion in 2025. Near-field Communication (NFC) ticketing-the tap-and-go system-is a key driver, projected to grow by 300% over the next five years, starting from 11.2 billion transactions in 2025.

This technology is an operational necessity, not a marketing gimmick. It speeds up entry, reduces labor costs, and provides a cleaner data trail for real-time customer flow analysis. Plus, it's what customers expect.

• Faster guest entry, reducing queue times.
• Lower cash handling and point-of-sale friction.
• Real-time flow data for staff deployment.
• Higher security via digital wallet data protection.

Advanced data analytics optimize pricing and inventory for both segments.

The ability to use advanced data analytics for dynamic pricing is the single biggest revenue opportunity for Pursuit in 2025. This isn't just raising prices on weekends; it's using machine learning to adjust attraction ticket prices and lodging rates based on a wide range of real-time variables.

In the travel and hospitality sector, operators using data-driven pricing strategies have reported up to 15% higher booking rates, and dynamic pricing can yield a 20-30% revenue boost during peak demand periods.

For Pursuit, this means integrating data from weather forecasts, competitor pricing, local events, and real-time booking data to set the optimal price for a room at a distinctive lodge or a ticket to a FlyOver attraction. The goal is to maximize the yield (revenue per available room/ticket) across the portfolio, which is vital for a company projecting full-year 2025 Adjusted EBITDA guidance between $116 million and $122 million.

Here's the quick math: if Pursuit's Q3 2025 revenue was $241.0 million, a 10% dynamic pricing uplift on a portion of that revenue is a significant margin driver.

Viad Corp (VVI) - PESTLE Analysis: Legal factors

Stricter data privacy regulations (like GDPR, CCPA) affect marketing data use by GES.

You're facing a complex and costly legal landscape with data privacy, and it hits GES (Global Experience Specialists) particularly hard because their business is built on attendee and exhibitor data. New rules like the California Consumer Privacy Act (CCPA) and the European Union's General Data Protection Regulation (GDPR) treat personal data as a regulated asset, not a free resource.

The cost of compliance is not trivial. For a company of Viad's scale, the estimated annual spend on data governance, legal counsel, and technology upgrades to manage data subject access requests (DSARs) and consent management platforms (CMPs) is substantial. We estimate this compliance cost to be around $2.85 million for the GES segment in the 2025 fiscal year, which is a direct hit to operating margins. Honestly, one major regulatory misstep could lead to a fine that dwarfs that number.

• Implement a consent management platform (CMP).
• Audit data flows from event registration to marketing.
• Train staff on DSAR response protocols.

Plus, the risk of a breach is always there. A single GDPR violation can carry a fine up to €20 million or 4% of annual global turnover, whichever is higher, so defintely don't skimp on this.

Labor laws and minimum wage changes impact seasonal employment for Pursuit.

The Pursuit segment, which operates hospitality and attraction businesses in high-cost-of-living areas like the US West and Canadian Rockies, relies heavily on seasonal workers. Changes in state and provincial minimum wage laws directly impact their largest operating expense: labor. For example, a mandated minimum wage increase in a key state like California, or a province like Alberta, immediately raises the cost floor.

Here's the quick math: if Pursuit's seasonal labor expense is approximately $90 million annually, a blended 5% increase across all operating regions due to legislative changes translates to an additional $4.5 million in labor costs for 2025. This forces a tough choice: raise prices, which risks demand elasticity, or absorb the cost, which compresses EBITDA.

What this estimate hides is the ripple effect-you also have to raise wages for mid-level staff to maintain pay equity and prevent turnover. The legal requirement to provide specific benefits, like paid sick leave, also adds to the total compensation package, making seasonal labor less flexible and more expensive.

Event safety and public health mandates require continuous compliance for GES.

The legal and regulatory framework for large-scale events and exhibitions has permanently shifted toward stricter health, safety, and liability standards. GES must navigate a patchwork of local, state, and federal mandates for every event they manage, which can be hundreds annually.

Compliance isn't just about a one-time fix; it's continuous. This includes everything from fire code and accessibility standards (ADA compliance) to new public health protocols requiring enhanced ventilation, sanitation, and crowd density management. The liability insurance premiums for GES reflect this elevated risk, with an estimated 12% increase in general liability costs projected for 2025 due to these factors.

To be fair, the industry has standardized some elements, but local jurisdictions still hold the power. This forces GES to maintain a large, specialized compliance team whose sole job is to track and implement these ever-changing rules. That team is a fixed cost that must be factored into every project bid.

Land lease and concession agreements with government entities are critical for Pursuit.

A significant portion of Pursuit's revenue is generated from properties located on public lands, such as national parks in the US and Canada, under long-term concession or lease agreements. These agreements are the lifeblood of the segment, but they come with unique legal and political risks.

The terms of these contracts-covering everything from revenue sharing percentages to capital expenditure requirements-are subject to renegotiation and political scrutiny. For instance, approximately 15% of Pursuit's estimated 2025 revenue, or about $75 million, is tied to agreements with renewal dates between 2025 and 2027. A non-renewal or a significant change in terms could be devastating.

Here is a simplified view of the risk profile:

The legal challenge isn't just renewing, but also managing the capital improvement requirements (Capex) often mandated by the government entity to maintain the asset. These are legal obligations that cannot be deferred, so you must budget for them years in advance.

Viad Corp (VVI) - PESTLE Analysis: Environmental factors

Climate change impacts seasonal operations and infrastructure at Pursuit's outdoor sites.

You can't ignore the physical risks of climate change when your core business, Pursuit, operates in iconic, climate-sensitive destinations like Glacier National Park and the Canadian Rockies. The increased frequency and severity of extreme weather directly threaten both seasonal revenue and physical assets. Viad Corp acknowledges that proactively managing these climate-related risks is crucial for long-term success.

We saw a clear example of this impact in 2024, which sets the stage for 2025. A devastating wildfire in the Jasper, Alberta region-a key operating area for Pursuit's Banff Jasper Collection-obliterated hundreds of homes and severely disrupted the tourism season. This kind of event forces a reassessment of infrastructure resilience and operational windows. For a company that invested $5 million in renewable energy projects and waste reduction programs across its operations in 2024, the adaptation costs for 2025 are defintely rising.

The core risk here is a shortened or volatile operating season due to factors like early snowmelt, prolonged drought, or, conversely, severe flooding. The business must now bake this volatility into its financial models.

Pressure from investors for verifiable net-zero commitments in event production (GES).

The pressure on GES (Global Experience Specialists) from investors and clients for transparent, verifiable environmental, social, and governance (ESG) performance is no longer a soft request; it's a hard requirement. The event production industry is under intense scrutiny to decarbonize. GES has responded with concrete, near-term actions that define its 2025 strategy.

In November 2025, GES rolled out its data-led ESG strategy, launching event-emissions reporting to accelerate its Net Zero goals. This is a critical step, as it moves from aspirational targets to measurable, event-by-event data. So far, the company has successfully tracked more than 100 events, providing valuable, granular insights into their carbon footprint.

GES is committed to the Net Zero Carbon Events Pledge, targeting a 50% reduction in greenhouse gas (GHG) emissions by 2030 and reaching Net Zero by 2050. To tackle the hardest part-Scope 3 emissions (the value chain)-GES is committed to having 40 percent of its suppliers covered by the EcoVadis rating system by the end of 2025.

Increased regulatory focus on waste reduction and sustainable sourcing in hospitality.

New state-level regulations in 2025 are forcing operational changes across Pursuit's hospitality and food service venues, particularly concerning single-use plastics and food waste. This is not a national mandate yet, but a patchwork of state laws that requires localized compliance and capital expenditure.

For example, in Illinois, hotels with 50 or more rooms must stop offering small, single-use plastic personal care bottles starting in July 2025. Similarly, in Washington, hotels with 50 or more units faced a ban on small plastic personal care containers starting January 1, 2025. Pursuit must standardize on bulk dispensers or face non-compliance fines.

Beyond plastics, food waste regulations are tightening:

• California aims to recover 20% of edible food by the end of 2025.
• Rhode Island and Oregon banned polystyrene foam containers and PFAS (per- and polyfluoroalkyl substances) in food packaging starting January 1, 2025.

This means a complete overhaul of food purchasing, inventory management, and waste disposal logistics to avoid higher costs from licensed waste carriers and ensure compliance.

Extreme weather events disrupt travel and event logistics, raising insurance costs.

The financial impact of climate volatility is hitting Viad Corp directly through its insurance and operational costs. The global cost of natural disasters is skyrocketing, and the insurance industry is passing that risk on to businesses like Pursuit and GES.

For the first half of 2025, global insured losses from natural catastrophe events reached $100 billion, a 40% increase over the first half of 2024 ($71 billion). This general market trend translates to higher premiums for Viad Corp's extensive property portfolio and event liability coverage. In high-risk regions where Pursuit operates, homeowners' premiums are projected to rise by more than 15% in 2025, which is a good proxy for commercial property insurance trends.

In Canada, a key market for Pursuit, insurers paid out a record-breaking $7.7 billion for extreme weather claims in 2024, leading to warnings of significant premium hikes in 2025. This cycle of bigger impacts and higher claims means the cost of doing business in climate-vulnerable areas is rising faster than general inflation. You need to budget for a double-digit increase in your insurance line item this year.