People are flocking back to Las Vegas in large numbers.
After spending two years confined or remaining local, individuals are beginning to travel and venturing to their preferred holiday spots across the nation.
Naturally, Las Vegas ranks among the most favored vacation spots and is currently experiencing a significant rise in tourist numbers. This surge in visitors isn’t solely due to an increase in weekday business travel.
The influx of visitors to Las Vegas this spring makes it somewhat challenging to discern the day of the week while strolling around the Vegas Strip. Generally, the visitor split is convention and business travel during weekdays and vacationing tourists on weekends.
Last year, we began to notice a gradual increase in visitation to Las Vegas, but it wasn’t until around February that things really started to accelerate. Now, it appears the long-repressed demand for vacation is not just real, but it’s in high gear.
Whole families are now vacationing together in Las Vegas, an experience that some parents may have previously undertaken alone.
When observing the Vegas Strip, it can appear as though all 42.5 million visitors from 2019 are returning simultaneously.
Casino operators aren’t particularly surprised by this, as they observed future reservations early in the year. In January, during quarterly earnings calls, several casino corporation CEOs predicted monthly surges in hotel occupancy.
Data following the same trend shows an increase in average daily hotel room rates that is faster than the rise in the number of visitors.
This, along with new marketing strategies and the resurgence of entertainment in Las Vegas, is resulting in increased hotel room rates and a decline in free rooms. The availability of complimentary rooms is a key factor that makes Las Vegas an attractive holiday spot.
Conventions are beginning to make a comeback, albeit smaller with less impact than usual. The following year could potentially see casino operators experiencing unprecedented hotel room rates.
Visitors were gone, but Vegas was not forgotten
In a bid to curtail the spread of the virus commonly referred to as coronavirus, the majority of the country, inclusive of Las Vegas casinos, shut down in March 2020. By June 2021, Las Vegas casinos had reopened, implementing new health and safety measures.
Despite the slow return of visitors to the casinos, the operators devised new strategies to maintain their operations. Executives developed innovative business plans for every aspect of the enterprise, enabling the casinos to:
- Remain operational even when visitation is slow.
- Develop a model that will increase profitability through streamlined operations when guests fully return.
The combination proved beneficial for both guests and operators in 2021. It allowed guests to indulge in their preferred entertainment forms, while casino operators were able to maintain their employment and keep their business running.
Regrettably, casinos are likely to continue functioning on a revised streamlined business plan even as a large number of visitors return. Theoretically, even as visitation to Las Vegas casinos sees an upsurge, the cutback in expenses will remain in effect.
Although visitation is still not on par with 2019 levels, the year preceding COVID-19, hotel room prices have surpassed those of the same year. There seems to be no signs of a decline in prices for hotel rooms, show tickets, and other related items.
Visitors are beginning to return, seemingly unconcerned with the cost of things. It’s understandable, as the bottled-up desire from not vacationing for two years is altering people’s approach to taking time off.
The phenomenon of ‘revenge travel’ is indeed a reality. Whether it’s tourists flocking to Las Vegas for a particular concert or other forms of entertainment, or simply seeking a break from their homes, the city is experiencing a resurgence in its usual hustle and bustle.
While it’s encouraging to see, the combination of supply and demand along with high inflation are making Las Vegas an expensive destination.
More reasons to visit Las Vegas
For over 20 years, Las Vegas has evolved beyond merely being a gambling hotspot. Since 1999, non-gaming revenue has comprised more than half of the income generated on the Vegas Strip.
Gambling is abundant in Las Vegas, but it’s also accessible in various states across the nation. Those who visit Las Vegas seek more than just another round of craps or a turn at the slot machine.
Early last year, Las Vegas faced a dearth of entertainment options. However, as COVID-19 restrictions started to lift, the city saw an increase in entertainment avenues. Currently, Las Vegas is bustling with so much activity that it’s almost overwhelming.
In this month, BTS, the world’s biggest pop group, performed four times at Allegiant Stadium, all to full houses. All pre-sale tickets were bought by fanclub members, making it impossible for the general public to purchase any. The demand was so high that MGM Grand’s arena was fully booked for viewing parties.
Las Vegas has reclaimed its title as the entertainment capital of the world, hosting touring and resident artists such as Lady Gaga.
The thriving business scene in Las Vegas is attributed to the high demand for various events coupled with people’s desire for vacations. While it’s heartening to witness, it is important to note that an increase in demand often leads to higher prices.
Rising room rates and fewer comp rooms
This summer, worlds are converging with an increase in reasons to visit Las Vegas compared to previous years. Casino operators have fine-tuned their operations over time. This combination could potentially lead to a record-setting year for the casino industry.
Typically, hotel room prices in Las Vegas fluctuate based on visitor demand. A new element in the hotel pricing strategy is the transformation in how casinos utilize their player rewards programs.
Casino managers who concentrate on the customers who bring in the most money will keep on distinguishing between the “haves and have-nots”. Those who never cared about free rooms and discounts likely won’t see many alterations.
High rollers and big spenders, however, make up the minority of Las Vegas visitors. Most visitors are likely to encounter smaller discounts, increased prices, and less complimentary rooms.
I discovered that the slow phase in Las Vegas over the past couple of years was more fulfilling than ever. Although business was sluggish, the deals from some casinos were the best they’ve ever been.
With guests coming back, my moderate budget doesn’t yield as much as before. I’ll miss the complimentary suites, food credits, and freeplay. I was aware that these perks wouldn’t last forever given my budget, and I’m fine with that.
During the Great Recession in 2008, a similar scenario occurred. For a few years, I had the opportunity to visit casinos that were previously beyond my financial reach, until the prices eventually stabilized.
Now that visitation is getting back to normal, or even better, my casino rewards are nearing their pre-COVID-19 levels. I am grateful for the chance to enjoy casino rewards that were previously not offered to me.
The upcoming challenge for casinos involves learning how to maneuver through the new realm of casino rewards.
Although some may not get complimentary hotel rooms, there are still reasonable discounts available for casino rewards members who make their bookings directly from the property.
Always be on the lookout for deals, they will always be there, even if the discounts aren’t as significant as they used to be.
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