Actually room prices have increased slightly to offset the drop in occupancy. It really doesn’t make sense to lower room rates in large properties unless there is a major slump like we saw during Covid days.
As an example, MGM Grand has around 5000 rooms. Let’s say they can sell a room for $200/night. At full occupancy that would be a million dollars. Now let’s say they are only running at 90% occupancy but they maintained the same price. That gives them $900,000. Now let’s say they increased the rate to $215. They would have $967,500. Just a small reduction in income. But what if they dropped the rates as an incentive to book? They reduced the rates to $150. Chances are that they still would not attain full occupancy, but let’s say they did. Now they have only $750,000. All that to say that you probably shouldn’t count on room prices coming down unless there is a major reduction in visitors.
I keep hearing tourism is down in Vegas. Casinos laying people off and Canadians not coming. I dont see hotel prices coming down. What is the real story?
I visit about every 5 to 6 weeks typically mid week. My last stay at night it was hard to get on a craps table at the Venetian and they were all going. During the morning and day it seemed slow and the pit crews were commenting on it. Vegas is pricey and not the deal it once was in my opinion. I’ll keep going though 😂 I’m just a damn degenerate.
Actually room prices have increased slightly to offset the drop in occupancy. It really doesn’t make sense to lower room rates in large properties unless there is a major slump like we saw during Covid days.
As an example, MGM Grand has around 5000 rooms. Let’s say they can sell a room for $200/night. At full occupancy that would be a million dollars. Now let’s say they are only running at 90% occupancy but they maintained the same price. That gives them $900,000. Now let’s say they increased the rate to $215. They would have $967,500. Just a small reduction in income. But what if they dropped the rates as an incentive to book? They reduced the rates to $150. Chances are that they still would not attain full occupancy, but let’s say they did. Now they have only $750,000.
All that to say that you probably shouldn’t count on room prices coming down unless there is a major reduction in visitors.
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