Las Vegas

How spending in Las Vegas is changing...
CarlyCrawford See my TER Reviews 1009 reads
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I was just discussing this very topic with a date last week, how 65% of casino revenue used to come from gaming and now the inverse is true- they are making more money with food, shows, spa, clubs and drinks as this article specifically mentions. Gone are the $5.99 Buffets trying to lure you in to spend $20 on a slot while you wait- now the Buffet is $25.99 and they could care less if you gamble or not- it's a guaranteed win!  

 
http://vegasseven.com/2015/06/24/the-rise-of-las-vegas-bar-culture/

For about as long as this town has been open for business, it’s been known as a place where people gamble and drink. But with the former now widely available elsewhere, Las Vegas has shifted its marketing focus to the latter. For certain, drinks—and those who mix them—have become yet another attraction.

Just look at the numbers: Since 2005, the average beverage spend per visitor has increased by 60 percent, more than twice the rate of the second fastest-growing segment: food. That increase reflects both the greater volume of spirits being poured as well as the increased cost for cocktails.

And that increased cost is about much more than a bottle of domestic beer going from $8 to $10. It represents a shift toward artisanal, handcrafted, choose-your-buzzword cocktails on the Strip—a shift that’s consistent with other former loss-leading casino departments.

Remember, there was a time when guest rooms were nothing more than dorm rooms for gamblers; it’s long been suggested that, initially, Las Vegas hotel rooms were deliberately made unappealing to drive visitors back into the casino (as if leaving the room could magically put more money in their wallets). Starting with The Mirage in 1989, developers began to hand the room keys to renowned designers, who would create spaces that guests wanted to stay in. Fast-forward to today, when such design is a key differentiator for many Strip resorts.

Similarly, casino restaurants once placed a premium on fast, inexpensive food. There were early exceptions, to be sure—the Dome of the Sea at the Dunes and Bacchanal at Caesars Palace come to mind—but for the most part, Las Vegas casino dining was intentionally unimpressive. Then, in the post-Mirage competitive sprint, chefs became celebrities (and vice versa), and both the quality and cost of the average meal increased. The ultimate expression of the upscaling of the casino dining experience can be seen in the buffet. Once the institutional-quality dining workhorse, buffets are now often more about small plates than Salisbury steak.

Entertainment has evolved along a parallel path, with impersonators, revues and legacy acts giving way to star headliners and extravagant production shows. In the hyper-competitive market of the Strip, it boils down to making every square inch of the casino produce as much revenue as possible. The old cliché that our billion-dollar palaces weren’t built on people regularly beating the casinos remains true. But they aren’t kept open by the take from slots and tables alone. In today’s Las Vegas, there are no loss leaders—every department is expected to pull its own weight.

Not long ago, bars might have had a difficult time following that mandate. After all, casinos traditionally give away alcohol to gamblers. But the shifting patterns of visitor behavior explains the increased cost (and quality) of casino drinks. As recently as 2007, 85 percent of adult visitors to Las Vegas did at least some gambling while they were in town—and probably expected to drink for free. Last year, only 71 percent did.

This rise of Vegas bar culture coincides with the (relative) decline of gambling visitors. If the focus of your Vegas vacation is going to be drinks and not dollar blackjack, you probably don’t want to guzzle the same well drinks you do back home. And that’s where handcrafted artisanal libations come in. They are filling the same niche as dinner at Giada’s or tickets to O—a Vegas-only treat that visitors can brag about when they return home.

So the increased emphasis on signature drinks—such as Patricia Richards’ timeless Sinatra Smash at Sinatra in Encore—makes perfect sense.

Another huge revenue boost for beverage departments: the bottle-service boom, where $450 bottles of $30 liquor buy valuable table real estate at night- and dayclubs. Sure, the focus in clubs is more on DJs and ambience, but (on paper at least)guests are paying for the hooch.

Drinks, then, like rooms, dining and entertainment, are more important to Las Vegas’ bottom line than ever before. No longer just lubricating gamblers, they are, in many cases, the main attraction. And with gaming revenues staying flat and more visitors eschewing gambling altogether, we can expect to see an even greater emphasis on bar design, menu selection and mixologist recruiting—both on the Strip and Downtown.

Never forget that our casinos always pivot to where customers want to spend. And for now, they want to spend on booze.

 

 
Now you know why so many providers have had to raise their rates.... So we can afford the crazy expensive drinks on the strip! ;-

LasVegan434 reads

not always.  Today almost every casino is over leveraged.  Just do a search for corporate bonds for your investment portfolio and you will be shocked to see just how many, big name, reputable casinos, have corporate bonds rated as junk.  Too much debt, too much speculation on expansion, too many failed ideas aimed at bringing in new business.........all too common for a casino to go bankrupt.

Casinos are now primarily owned by mega corporations and because of what they believe is a more sound business model, their margins are paper thin at best.

This is NOT how things used to be.  About 20 years ago......I could take you to Circus, Circus.......(yes it is a dump now and must admit have not been in it for more years than I can recall).......at 2AM..........we could have the freshest, highest quality coffee, and a piece of cake on par with Freed's bakery.  For a very reasonable price.  As a result, we would be happy to go there and would spend more than enough money in the casino to justify the outstanding coffee/cake.

That was when most casinos were owned by private entities and clients were given outstanding service no matter the cost and that seemed to make owning a casino, quite profitable.  Today, the coffee tastes like.........well something very undesirable..........and the cake is not made by a world class pastry chef..........but whoever.......and instead of butter..........lard.........instead of cream........skim milk..........all the ingredients are chosen based upon profit margin..........not putting together a product that a chef can be proud of.

Guess things change............even in Las Vegas........but one thing IS certain..........we do not always get what we pay for.

I can go on and on about how Wynn started the make money from every department thing but I'm not. I will however comment on this:

"Now you know why so many providers have had to raise their rates.... So we can afford the crazy expensive drinks on the strip! ;-) "

Sorry -- but I'm now hobbying in other cities that cost FAR more to live in than Las Vegas and doing so for less than Vegas. Quick search in San Diego and Los Angeles and it's pretty easy to figure out you get more bang for your buck there.

Last weekend... did an overnighter with a 10/10 (Vegas Standards) in her nice incall OC location near the beach that had to be at least worth $900K. Got there at 7 and had a nice Dinner, fun and more fun and then breakfast for a total of 2 big bananas. Left at 9 the next morning.

The current rates in Vegas for quality ladies can't compete with that...  

Good for the ladies that can jack their rates up with the current demand in Vegas but for me.. I'm pretty much done hobbying with new ladies in Vegas with the current rates.  

Like any quality lady in Vegas has to pay for their drinks when they are out and about to begin with... LOL

2442939225 reads

and the movies they produce about Vegas. It's now more about the clubs, pool parties and the place to go for bachelor and Bachelorette parties. There are reality shows about the hottest pool parties in Vegas. What 20-something guy who watches that show and sees all of the beautiful women partying at the pool would not want to go to Vegas and drop hundreds of dollars on bottle service just to attract a few bikini-clad women?

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