Fed President Susan Collins Hears of Rising Costs in Vermont Tourism

Vermont business leaders informed Federal Reserve Bank of Boston President Susan Collins this week that rising labor and material costs are pressuring the state’s tourism and hospitality sectors.

The discussion, held at Killington Resort, highlighted how inflationary trends continue to challenge regional operators despite stable demand for premium experiences.

Killington Resort CEO Mike Solimano opened the roundtable at the K-1 Lodge with a presentation on the company’s recent financial performance. While the resort experienced a 6% increase in ski visits last year, Solimano said that operating expenses for snowmaking and ski lifts have climbed faster than general inflation. Food and beverage sales fell by more than 10% per visitor.

“There’s no doubt some consumers are feeling the pinch and maybe are cutting back.”

said Solimano. He added that the resort is adjusting its operations to account for these shifting consumer habits while maintaining profitability.

Susan Collins, who oversees the Boston Fed, uses these regional roundtables to gather qualitative data that complements national economic statistics. Although she does not vote on interest rates, she provides input to the committee that does. Collins said that broad data sets can often obscure the specific challenges faced by businesses in different locations and sectors.

The roundtable participants reported that while middle-class customers are becoming more budget-conscious, demand for luxury and premium products remains high. Businesses across the region are also struggling with the dual burden of labor shortages and limited housing, which often forces employers to subsidize workforce accommodations to maintain staffing levels.

Federal data released on Tuesday indicates that inflation remains elevated both in New England and across the United States. Local business owners are responding to these persistent cost pressures by raising prices, even as they observe signs of shorter hotel stays and declining demand for food and beverage.

Solimano confirmed that despite these economic headwinds, Killington has committed to ongoing capital improvements. The resort has invested $80 million in infrastructure over the last three years, supported by an ownership group that has pledged to reinvest all profits for a decade.