Re: Mega-Resorts: The Monster that ate Las Vegas
- From: Skip <skipfromla@xxxxxxxxx>
- Date: Mon, 20 Feb 2006 20:15:45 GMT
On Mon, 20 Feb 2006 17:14:01 GMT, Odysseus <x@xxx> wrote:
A few weeks back I commented about the increase in hotel rates in LV.
I think that the following web page gives a good explanation of what
happened to the bargain rates I used to get in the 1990s.
http://www.ratelasvegas.com/hotels/analysis.html
To sum it up.
Before the mega-resorts rooms and food were cheap. The casinos made
most of their money from the tables. Comps were easy to get and worth
the effort of obtaining them. With the arrival of the mega-resorts
the casinos decided to attract the small time gamblers who preferred
slots. These gamblers could still get a value priced vacation.
Increasingly, casino management decided to focus on non-gaming revenues
to offset the high costs of running the huge hotels. They increased the
cost of rooms, food, show tickets, and souvenirs. Comps have been made so
difficult to get that, for the small time gambler, they are not worth the
effort to obtain. The small time gamblers are now being priced out of the
market.
"...As the Mega-resorts continue to get larger, and perforce more
expensive to operate and maintain, they are forcing the gaming consumer
to begin making harder and harder choices about where they can/will go
to spend their money; sometimes even having to decide not to partake
at all..."
It's not the mega-resorts, it's who owns them. When I worked at the
Horseshoe in the 60s, they made a ton of money even if their hotel,
buffet and restaurant continually ran in the red, just like the rest
of downtown. It was cheaper to eat at a hotel/casino than it was to
buy food. 6 of us rented an apartment in Las Vegas and a house in
Boulder City. The fridge in the apartment was always empty.
The strip wasn't much different. The "boys" figured maybe 15-20% of
the people who wandered in for the cheap buffets, shows and
attractions would drop money in a machine or at the tables.
They figured around 80% of the hotel guests would spend time in the
casino.
When the corporations took over from the "boys", they brought in the
bean counters who motto was, "Every part of the property must make a
profit."
The doomsayers said that this will be the end of Las Vegas, just as
they did when gaming became legal in Atlantic City and just as they
did when the Indian casinos started popping up all over the country.
Now, the doomsayers are saying that the hotels and casinos are pricing
the small time gambler out of the action. Considering most of the
visitors to Las Vegas are from California and most are small time
gamblers, one would think that they would stop coming to Las Vegas and
go to the local Indian casino for their gambling Jones. That isn't
happening.
The end of Las Vegas isn't in sight. Full planes land in Las Vegas
almost around the clock. The hotels and casinos are pretty much full
and people are paying the price increase. Las Vegas is making more
money than ever, evidenced by the constant building of new
hotel/casinos and additions to existing properties.
What has happened among the small time gamblers is a migration from
the strip to other areas, downtown and off strip properties, all the
way to Primm, because the rooms are more affordable. It's doubtful
any of the strip properties even notice.
Skip
Skip
.
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