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

You're looking for a clear-eyed view of Viad Corp (VVI) now that the company is laser-focused on its experiential travel business, Pursuit. The direct takeaway is this: Viad has successfully pivoted to a high-growth, high-margin model, but its reliance on discretionary consumer spending is the primary risk you need to map. Honestly, the Q3 2025 results were exceptional, with Pursuit delivering record revenue of $241.0 million, and the balance sheet is clean with a low net leverage of only 0.7x. Still, that success is tied to consumers feeling good about spending, so let's dig into the full SWOT to see where the real opportunities and threats lie.

Viad Corp (VVI) - SWOT Analysis: Strengths

Viad Corp, now operating as Pursuit Attractions and Hospitality, Inc., is showing real financial momentum, which is the clearest sign of its underlying strength. The business is benefiting from its strategic focus on high-quality, experiential assets, translating directly into better-than-expected earnings and a rock-solid balance sheet.

Raised 2025 adjusted EBITDA guidance to a strong range of $116 million to $122 million

You should see the raised full-year 2025 guidance as a major vote of confidence in the business model. Based on strong third-quarter results, management increased the full-year adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) guidance to a range of $116 million to $122 million. This represents a significant step up, projecting substantial adjusted EBITDA growth of $39 million to $45 million relative to 2024, showing the scalable nature of the business and effective cost management.

Here's the quick math on the growth:

• Full-Year 2025 Adjusted EBITDA Guidance: $116 million to $122 million
• Prior Guidance Midpoint Increase: $6 million
• Projected Revenue Growth (Midpoint) vs. 2024: Approximately 24%

Low net leverage of only 0.7x, providing significant financial capacity for growth

The balance sheet is defintely a core strength, giving the company a massive advantage for future growth. As of September 30, 2025, the net leverage ratio stood at a very low 0.7x. This is comfortably below their target range of 2.5x to 3.5x, which means they have considerable financial flexibility to execute their 'Refresh, Build, Buy' strategy.

Low leverage means less risk in a downturn, but more importantly, it means they can easily fund organic growth (Refresh and Build) or pursue accretive acquisitions (Buy). Total liquidity at the end of Q3 2025 was $274.4 million, including $240.6 million available on their recently upsized revolving credit facility. That's a lot of dry powder.

Portfolio of irreplaceable, high-barrier-to-entry assets in premier destinations

The real long-term strength isn't just the numbers, but the quality of the assets producing them. Pursuit owns and operates experiences in iconic, often regulated, locations that are nearly impossible to replicate. This 'high-barrier-to-entry' moat protects their pricing power and margins.

They are not just buying hotels; they are acquiring and developing unique attractions and lodging in places with perennial demand, like national parks and world-class destinations. For example, in 2025, they invested $124 million in acquisitions, including the $111 million purchase of Tabacón Thermal Resort & Spa in Costa Rica, which diversifies their portfolio into a premier international wellness destination.

Key Asset Examples and Strategic Investments:

• Jasper National Park: Large-scale refresh of the year-round Forest Park Hotel Woodland Wing to target mass affluent leisure travelers.
• Whitefish, Montana: Transformation of Grouse Mountain Lodge to meet demand for higher-end lodging.
• Costa Rica: Acquisition of Tabacón Thermal Resort & Spa, a unique hot springs destination.
• Global Footprint: Experiences span iconic destinations across the United States, Canada, Iceland, and Costa Rica.

Pursuit delivered record Q3 2025 revenue of $241.0 million, up 32.2% year-over-year

The third quarter of 2025 was a record-breaker for the Pursuit segment, posting revenue of $241.0 million. This was a massive 32.2% increase year-over-year. This growth wasn't just a fluke; it was driven by a strong recovery in their Jasper properties following the 2024 wildfires, plus incremental growth from new experiences and sustained guest demand across their existing portfolio.

The segment's adjusted EBITDA for Q3 2025 also saw a substantial increase of 41.5%, reaching $117.4 million, showing that the revenue growth is flowing through to the bottom line with strong operating leverage and disciplined cost control. This kind of margin expansion in a high-growth environment is a powerful indicator of operational efficiency.

Viad Corp (VVI) - SWOT Analysis: Weaknesses

Revenue is highly sensitive to economic conditions, impacting discretionary leisure travel.

The core business, now operating as Pursuit Attractions and Hospitality, Inc., is almost entirely dependent on discretionary leisure spending, which is the first thing consumers cut back on during an economic slowdown. You can see this risk mapped out in the broader industry outlook for 2025.

While Pursuit's unique, high-end locations offer some insulation, the U.S. hotel industry forecast for 2025 anticipates a 0.4% decline in Revenue Per Available Room (RevPAR), the first drop since 2020. This signals a tightening consumer environment that Pursuit cannot defintely avoid. The company's own filings acknowledge this exposure, citing 'general economic uncertainty in key global markets' as a material risk, because a downturn impacts both visitation and pricing power for their attractions and lodging properties.

Operational margins face pressure from rising costs in labor and supplies.

Even with strong demand, the cost side of the equation is a persistent headwind. The nature of the hospitality business means labor and operating supplies are major expenses, and inflation is hitting hard. For the nine months ended September 30, 2025, Pursuit saw its total labor expense increase by $7.5 million year-over-year, alongside a $2.0 million jump in operating supplies and services just in the third quarter alone. Here's the quick math on the Q3 2025 cost pressures:

• Q3 2025 Labor Expense Increase: $6.1 million
• Q3 2025 Operating Supplies Increase: $2.0 million

Plus, the company has explicitly reported experiencing labor shortages, forcing them to pay higher wages and incur initial hiring costs. This directly compresses the high operating margins Pursuit generates from its attractions.

Reduced business diversification following the sale of the GES exhibition services segment.

The sale of the GES exhibition services segment, which closed on December 31, 2024, was a strategic move to create a 'pure-play' high-growth business, but it dramatically concentrated the company's risk profile. The former Viad Corp was diversified across two major, non-correlated segments: attractions (Pursuit) and B2B event services (GES).

The loss of GES revenue-which generated an estimated $258 million to $278 million in 2024 revenue-removes a hedge against poor leisure travel seasons or location-specific disruptions like the 2024 Jasper wildfires. The new Pursuit is now singularly focused on attractions and hospitality, making its performance much more vulnerable to factors like weather, geopolitical events, and shifts in tourism trends. What this estimate hides is the loss of GES's counter-cyclical cash flow from the exhibition business.

Business is seasonal, concentrating earnings and cash flow into the summer quarters.

The Pursuit business is inherently seasonal, with a vast majority of its revenue and cash flow generated during the peak summer travel months in North America. This concentration creates a significant working capital strain and financial risk during the off-peak seasons. The Q3 2025 results make this concentration crystal clear:

The $117.4 million in Adjusted EBITDA generated in the third quarter of 2025 alone accounts for 98.7% of the company's full-year 2025 Adjusted EBITDA guidance midpoint of $119.0 million. This means the business essentially generates all its profit and cash flow in a single three-month window, and the company posted a net loss of $17.5 million in the first quarter of 2025. This seasonality forces the company to manage significant working capital outflows for nearly nine months of the year, amplifying any operational missteps or unexpected events outside of the peak season.

Viad Corp (VVI) - SWOT Analysis: Opportunities

The core opportunity for Viad Corp, now operating as Pursuit Attractions and Hospitality (PRSU), is clear: the company is perfectly positioned to capture the global shift toward high-end, experience-driven travel. You have a strong balance sheet and a defined capital deployment strategy-the Refresh, Build, Buy model-that is accelerating growth, not just maintaining it.

Identified over $250 million in organic refresh and build investments through 2030

Viad Corp's subsidiary, Pursuit, has a significant, identified pipeline of organic growth projects, which they call Refresh and Build opportunities, totaling over $250 million through 2030. This isn't just maintenance; it's high-return capital expenditure (capex) designed to elevate asset quality and guest experience, which drives premium pricing.

Here's the quick math: For the 2025 fiscal year, the company is already planning to invest between $38 million and $43 million in organic Growth Capex. This disciplined investment focuses on high-yield projects like:

• Full-scale refresh of the Woodland Wing at Forest Park Hotel in Jasper National Park, targeting mass affluent leisure travelers.
• Transformation and repositioning of the Grouse Mountain Lodge in Whitefish, Montana, to meet demand for higher-end lodging.

These projects are among the most efficient uses of capital, delivering high returns and long-term value. It's a smart way to grow without the integration risks of a large acquisition.

Strategic expansion into new high-value markets, like the 2025 Tabacón acquisition in Costa Rica

The acquisition strategy, the 'Buy' part of the model, is focused on irreplaceable assets in markets with perennial demand and high barriers to entry. The July 2025 acquisition of the Tabacón Thermal Resort & Spa in Costa Rica is a concrete example of this strategy in action, providing a strategic entry into a new, high-growth global market.

This transaction cost $111 million and immediately added a 105-room, five-star luxury resort and the largest network of naturally flowing thermal mineral springs in Costa Rica to the portfolio. The property is also an Elite Level Certification for Sustainable Tourism (CST) recipient, which is a key differentiator for eco-conscious travelers.

The move to a year-round destination like Costa Rica also helps improve the company's overall seasonality and geographic concentration, which is defintely a positive for revenue stability.

Capitalizing on the continued global secular trend toward experience-driven hospitality

The global consumer demand for authentic, immersive, and experiential travel is a massive, sustained tailwind for the business. Viad Corp's focus on attractions and hospitality (experiential leisure services) is directly aligned with this trend. We're seeing a clear shift in consumer spending from goods to experiences.

The Wellness Tourism market, which encompasses much of what Pursuit offers, is projected to grow by approximately 17% annually, potentially reaching $1.4 trillion by 2027. This is a huge market to tap into.

The Tabacón acquisition, for instance, is perfectly positioned within this trend, offering a world-class, nature-based wellness experience at the base of the Arenal Volcano. The company is structured to benefit from strong compression dynamics-high occupancy and premium pricing-in iconic destinations that have limited supply.

Ample liquidity to fund further acquisitions of unique, high-return properties

Following the transformation into a pure-play attractions and hospitality company, Viad Corp has a very strong balance sheet that provides the flexibility to accelerate its growth strategy. This low leverage and high liquidity position is a major opportunity to continue the 'Buy' strategy without undue financial risk.

As of September 30, 2025, total liquidity stood at a robust $274.4 million. This is a combination of $33.8 million in cash and cash equivalents, plus $240.6 million available on the revolving credit facility. The company's net leverage ratio is extremely low at just 0.7x, which is far below the stated target range of 2.5x to 3.5x.

In September 2025, the company upsized its revolving credit facility by $100 million to a total of $300 million and extended the term to September 2030. This move enhances financial flexibility and ensures they can capitalize on strategic acquisition opportunities that meet their strict hurdle rate of over 15% Internal Rate of Return (IRR).

You have the cash and the credit line to make another Tabacón-sized deal right now.

Viad Corp (VVI) - SWOT Analysis: Threats

You're looking at Viad Corp, now operating as Pursuit Attractions and Hospitality, Inc., from a position of strength, given the record Q3 2025 results. But as a seasoned analyst, you know the biggest threats don't come from internal missteps right now; they come from the macro environment and the sheer scale of the competition for the high-end leisure dollar. The core risk is that the strong demand for experiences-which drove Pursuit's Q3 2025 revenue to $241 million-hits an economic wall.

A defintely sharp recession causing a major pullback in consumer discretionary spending.

The primary near-term threat remains a sudden, sharp contraction in consumer discretionary spending. While the US economy has shown resilience, the risk of a recession in the next 12 months is not zero; some prediction markets estimated the chance at 40% in Q1 2025. Even without a full recession, a significant slowdown is already forecasted: S&P Global projects US consumer discretionary dividend growth to slow to 6.46% in 2025, down from 8.9% in 2024. This signals caution from the broader market.

Pursuit's business is highly sensitive to this, especially its attractions like the Columbia Icefield Skywalk. The good news is the company is financially positioned to weather a severe downturn. Their Q3 2025 net leverage ratio is exceptionally low at 0.7x, which is a significant buffer against the target range of 2.5x to 3.5x. This low leverage means the company has ample capacity to absorb a revenue shock without violating debt covenants.

Geopolitical instability or environmental events (like the 2024 Jasper wildfire) impacting key locations.

The concentration of Pursuit's most iconic assets in geographically sensitive areas, particularly the Canadian Rockies and Glacier National Park, exposes the company to acute environmental risks. We saw this firsthand with the 2024 Jasper wildfire activity, which caused a $21.9 million decline in 2024 revenue.

While the company is adept at mitigating the financial fallout-receiving $23.7 million in total business interruption insurance proceeds since the 2024 wildfire-the operational disruption and brand damage from a prolonged closure are harder to insure. The threat is not just fire, but also extreme weather events that can close roads, attractions, or entire properties for peak season months. The company is investing heavily in these areas, but that capital is still vulnerable to nature.

Inflationary pressures that outpace the company's ability to optimize pricing and yields.

Inflation is a persistent headwind, especially for a hospitality business facing rising labor, food, and energy costs. As of September 2025, the US annual CPI inflation rate was 3%, with core CPI also at 3%, and some economists predict core CPI could climb above 3% by the end of 2025. This means the cost of doing business is rising at a clip that demands constant pricing power.

The company has demonstrated an ability to manage this, achieving a 9% increase in same-store constant currency effective ticket pricing in Q3 2025. The threat, however, is a scenario where wages and supply costs accelerate beyond that 9% pricing capability, squeezing the adjusted EBITDA margin, which was a strong 49% in Q3 2025. If consumers start to push back on the higher ticket prices, that margin expansion quickly reverses.

Increased competition from larger, integrated resort operators in the experiential space.

Pursuit's unique selling proposition (USP) is its collection of experiences in iconic, often protected, natural destinations. But the competition for the high-net-worth, experience-seeking traveler is fierce and comes from much larger entities. These competitors have massive marketing budgets and integrated loyalty programs that Pursuit cannot match in scale.

The threat is a shift in consumer preference toward the convenience and breadth of offerings from major integrated resort operators, even if they aren't located inside a national park. These players can bundle travel, lodging, and experiences globally, directly competing for the same travelers who book a room night at one of Pursuit's nearly 200,000 room nights sold in Q3 2025. Key competitors in the broader hospitality and leisure market include:

• Marriott International Inc: Annual Revenue of approximately $25.1 Billion.
• Hilton Worldwide Holdings Inc: Annual Revenue of approximately $11.2 Billion.

This scale allows them to absorb cost pressures and outspend Pursuit on digital customer acquisition defintely easily.

Next Step: Finance should model a 20% drop in Q3 2026 revenue to stress-test the current low leverage ratio by the end of this week.