[jpk]

Vegas hotel rooms are supposed to be a bargain, that's a part of the appeal. A room at a Vegas hotel for $100 should be equivalent to a $400 room in other cities. What is more out of line is when Vegas hotels were charging $400 for a $100 room. Prices are getting closer to where they need to be to keep the volume of visitors up.I remember just two years ago trying to get a room at the Mirage and they wanted $400, not making this up. I didn't stay there, to say the least. Last year was $89 for a similar weekend, and I imagine prices are still around there now.

[Diamond Dog]

Originally Posted by jpk

Vegas hotel rooms are supposed to be a bargain, that's a part of the appeal. A room at a Vegas hotel for $100 should be equivalent to a $400 room in other cities. What is more out of line is when Vegas hotels were charging $400 for a $100 room. Prices are getting closer to where they need to be to keep the volume of visitors up.I remember just two years ago trying to get a room at the Mirage and they wanted $400, not making this up. I didn't stay there, to say the least. Last year was $89 for a similar weekend, and I imagine prices are still around there now.

They've just released their "20th Anniversary" Special rates - and some days are down into the low/mid $60's.

[dynimagelv]

Las Vegas hotel rates are based upon the ageold rule of "Supply and Demand" so dont expect the low rates to hang on forever.....assuming that the economy turns around, you can expect the rates to climb....

[Diamond Dog]

Originally Posted by dynimagelv

Las Vegas hotel rates are based upon the ageold rule of "Supply and Demand" so dont expect the low rates to hang on forever.....assuming that the economy turns around, you can expect the rates to climb....

Are you aware of any cities where room rates aren't decided by 'supply & demand'?

I'm sure room rates will rise - but only when the economy picks up. I live in the UK - and I think we have two more years (at least) before we see any noticeable upward change in the trend. How do you see it in the USA?

[skisickie]

plan on the year 2015

[ComeBack_Kid]

Originally Posted by skisickie

plan on the year 2015

and what are you basing that on?

[olecapt]

Originally Posted by Diamond Dog

Are you aware of any cities where room rates aren't decided by 'supply & demand'?

I'm sure room rates will rise - but only when the economy picks up. I live in the UK - and I think we have two more years (at least) before we see any noticeable upward change in the trend. How do you see it in the USA?

The LV pricing system is a highly refined and sophisticated one. It sets prices to almost fill the house almost all the time. And it works pretty well. It does mean that prices get quite low mid week in slow periods...but they also spike nicely on the really good weekends like super bowl.

And they can twist a knob and increase occupancy relatively easily at the cost of room revenue.

I believe the strategy played is to stay close to full.

[Diamond Dog]

Originally Posted by olecapt

The LV pricing system is a highly refined and sophisticated one. It sets prices to almost fill the house almost all the time. And it works pretty well. It does mean that prices get quite low mid week in slow periods...but they also spike nicely on the really good weekends like super bowl.

And they can twist a knob and increase occupancy relatively easily at the cost of room revenue.

I believe the strategy played is to stay close to full.

Which is exactly what I was alluding to earlier - prices will stay low, in general, and rise at certain 'hot spots' throughout the year.

One big minus factor for Las Vegas is the loss of convention revenue - the days of companies flying thousands of employees to 'Sin City' to discuss how they are losing their shareholders money (hello, Wells Fargo) are over. It will no longer be tolerated - certainly for the foreseeable future. That's a huge loss of room revenue & occupancy - and the resultant spin off income has gone too. The casinos will have to moderate room rates, to increase occupancy. It's the only way to survive.

It's well known that casinos use an equation of room rate occupancy = increase in entertainment and gaming revenue. It's not precise - but they expect x amount of income (from other revenue streams) for each paying hotel guest. The only way they can even begin to maintain that (and get to break even point) is to try and have 100% occupancy level.

To have vacant rooms is not an option.Unlike in other hotel markets, the room is only the start of the process - with other markets, it is the process.

[Diamond Dog]

Originally Posted by Diamond Dog

One big minus factor for Las Vegas is the loss of convention revenue - the days of companies flying thousands of employees to 'Sin City' to discuss how they are losing their shareholders money (hello, Wells Fargo) are over. It will no longer be tolerated - certainly for the foreseeable future. That's a huge loss of room revenue & occupancy - and the resultant spin off income has gone too.

An interesting article about Conventions etc:

Sin City worries its image hurts business travel - International Herald Tribune

When even Harrah's VP is saying they shouldn't be happening (in certain circumstances) you know the message is hitting home.