Airbnb is popular worldwide as it offers a great alternative to hotels, and it has become quite a problem on the Las Vegas Strip as it continues to affect the revenue that hotels in this area make. Las Vegas’ budget has been filled by two main things for a very long time – accommodation and casinos. However, the former seems to be losing control as tourists choose to stay in private apartments offered by individuals on Airbnb.
In other words, Airbnb may be useful in areas where there are few or no hotels, which is basically everywhere in the world except for a couple of places that make a living out of hotel accommodation, one of them being Las Vegas. Sheldon Adelson has recognized this problem, as his company is being affected by Airbnb up to a certain extent. It is only a matter of time before he starts a campaign against this accommodation platform and finds a way to make the service illegal in the area of Las Vegas (or maybe even wider).
Since he has taken a look at the latest findings that suggest Airbnb is taking the revenue away from casinos and hotel rooms in the Strip, Adelson is bound to try to find a way which would make the online service illegal.
Telsey Group Advisory is a research firm which is based in New York, and its members conducted research which suggested that Airbnb affected the revenue at the Las Vegas Strip area by approximately $150 million. In other words, what tourists could have spent on hotel rooms went straight into the pockets of individual homeowners who offered their rooms and apartments to the visitors of the Entertainment Capital of the World. The reason why the visitors of Vegas from all around the globe started massively using Airbnb is mainly the cheaper accommodation prices that people offer when compared to hotel rooms.
Brian McGill is one of the researchers at Telsey Group Advisory, and he has stated that Airbnb had seen amazing growth in Las Vegas over the past couple of years. Furthermore, he added that, according to search trends in Google, the popularity of the service would continue to rise in the future, as people often search for Airbnb in Las Vegas for accommodation. According to McGill, Airbnb could present a real threat during the peak of the season as more people would opt for cheaper accommodation.
The research predicts that the number of tourists in Las Vegas who will use Airbnb in 2019 will go over a million, which would be a 300,000 increase in comparison to 2018.
The prices of rooms in casino and hotels resorts are quite high, and the majority of visitors agree with that. Hotel rooms cost on average between $100 and $200 with additional resort fees which can sometimes go up to $50. In other words, by choosing Airbnb, visitors get to save up to $100 per night in Las Vegas.
On the other hand, Airbnb is still not that big of a player in Vegas as its accommodation takes up to 1.7% in this area. Therefore, they are still unable to have a huge impact on casinos, at least in the short run. However, when we take into account that there are tourists during the whole year, the impact is felt by casinos.
McGill concluded that events such as the Super Bowl and other important happenings in Vegas usually resulted in increased Airbnb bookings in Vegas as people were tired of being charged for everything when they stayed in a hotel.