People are flocking back to Las Vegas in large numbers.
After spending two years confined or remaining local, individuals are now hitting the road and traveling to their beloved holiday spots across the nation.
Naturally, Las Vegas is a highly favored vacation spot that is currently experiencing a surge of tourists. The rise in visitors isn’t solely due to augmented business travel during the weekdays.
This spring, the number of people visiting Las Vegas is so high that telling what day it is can be a challenge, especially when walking around the Vegas Strip. Usually, convention and business travelers visit during the week, while tourists on vacation come over the weekend.
Last year, we began noticing a gradual increase in Las Vegas visitation which significantly accelerated around February. Now, it appears that the suppressed demand for vacation is real and extremely high.
Whole families are now vacationing together in Las Vegas, an experience that in the past, some parents may have undertaken alone.
From the view of the Vegas Strip, it can appear as if all 42.5 million visitors who came to Las Vegas in 2019 are returning simultaneously.
Casino operators aren’t much surprised, having observed future bookings early in the year. In January’s quarterly earnings calls, several casino corporation CEOs were predicting monthly rises in hotel occupancy.
Data trailing indicates a comparable rise, with average daily hotel room rates increasing more rapidly than the visitor count.
The combination of new marketing strategies and the return of entertainment to Las Vegas is resulting in increased hotel room prices and a decrease in complimentary rooms. These complimentary rooms are a key factor in making Las Vegas an attractive vacation spot.
Conventions are gradually resuming, but they are smaller and less impactful than usual. However, next year might witness record hotel room rates for casino operators.
Visitors were gone, but Vegas was not forgotten
Most of the country, inclusive of Las Vegas casinos, shut down in March 2020 to aid in curbing the proliferation of the virus widely referred to as coronavirus. The casinos in Las Vegas resumed operations in June 2021, implementing new health and safety procedures.
Casino operators devised new strategies to keep their businesses afloat as visitors were hesitant to return. Executives developed comprehensive business plans for each sector of the casino, enabling them to:
- Remain operational even when visitation is slow.
- Develop a model that will enhance profitability through streamlined operations when guests fully return.
In 2021, the arrangement benefited not only the guests, who had a spot to indulge in their preferred entertainment, but also the casino operators, who managed to retain their employment and keep their business running.
Regrettably, as a large influx of visitors return, casinos are expected to continue functioning on a modified, streamlined business plan. Theoretically, even as the number of visitors to Las Vegas casinos rise, the decreased expenses will likely remain low.
Although visitation has not yet reached the levels of 2019, the last full year before the COVID-19 pandemic, hotel room prices are surpassing those of the same year. There seems to be no sign of a decrease in prices for hotel rooms, show tickets, among other things.
Visitors are beginning to return, seemingly unconcerned about the cost of everything. It’s comprehensible that the suppressed demand 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 people are flocking to Las Vegas for a particular concert or other forms of entertainment, or simply seeking a getaway from home, the city is experiencing a resurgence in busyness.
While it’s wonderful to observe, the combined effects 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 been more than merely a gambling hotspot. Since 1999, non-gambling revenue has comprised over half of the total income on the Vegas Strip.
Gambling is abundant in Las Vegas, yet it can be found in various states across the country. Those who visit Las Vegas are often in search of experiences beyond just another game of craps or a spin on the slot machine.
Early last year, Las Vegas was experiencing a dearth of entertainment. As COVID-19 restrictions began to ease, the city saw a surge in entertainment options. Currently, Las Vegas is almost overwhelmed with activities.
BTS, the world’s biggest pop group, performed four sold-out concerts at Allegiant Stadium this month alone. All pre-sale tickets were bought by fanclub members, leaving none available for the general public. The demand was so high that MGM Grand also sold out its arena for viewing parties.
Las Vegas has reclaimed its title as the entertainment capital of the world, hosting both touring and resident artists such as Lady Gaga.
The surge in demand for events and vacations in Las Vegas is causing a business boom. However, this increase in demand is also leading to higher prices, which, while challenging, is a positive sign of growth.
Rising room rates and fewer comp rooms
This summer promises an exciting interaction of worlds, giving more reasons to visit Las Vegas than before. Casino operators have fine-tuned their operations over time, and this could potentially lead to a record-smashing year for them.
Typically, hotel room prices in Las Vegas fluctuate based on visitor numbers. A new factor in the pricing mix is the modification of how casinos utilize their player rewards programs.
Casino operators will continue to differentiate between the “haves” and “have nots” by focusing on the customers that produce the most revenue. Those who have never been concerned about complimentary rooms and discounts are unlikely to notice significant changes.
Nonetheless, the majority of Las Vegas visitors are not high rollers or big spenders. Most visitors are likely to encounter smaller discounts, increased prices, and limited complimentary rooms.
I discovered that the recent two-year lull in Las Vegas was more beneficial than ever. Although business was sluggish, some casinos offered better deals than ever before.
With guests returning, my mid-level budget doesn’t bring in as much as before. I will miss the complimentary suites, food vouchers, and free play. I knew these perks were temporary based on my budget, and I’m fine with that.
During the Great Recession in 2008, a similar event occurred. I got the opportunity to visit casinos that were normally beyond my budget, until prices stabilized after a few years.
Now that visitor numbers are returning to normal, if not better, my casino rewards are nearing their pre-COVID-19 status. I’m grateful for the chance to take advantage of unique casino rewards that I hadn’t previously been offered.
The upcoming challenge in the casino is mastering the navigation of the new world of casino rewards.
Although some may not be eligible for free hotel rooms, casino rewards members who book directly from the property can still avail of considerable discounts.
Always be on the lookout for deals, they will always be there, even if the discounts are not as deep as they used to be.
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