All of the major casino-resorts on the Las Vegas Strip are now open to the public. Casino companies are now doing everything they can to boost tourism into the city. Interestingly, new reports indicate that room rates in Las Vegas still remain above the US average.
Under normal circumstances, this wouldn’t be a surprise at all. At the moment, however, some feel that room rates need to drop in order to bring in more visitors. Today, we’re going to look at some of the strategies casino companies here are doing to bring in more tourists.
Let’s get into it!
Nearly All Las Vegas Casinos Are Now Operating Again
The city of Las Vegas has been the world’s biggest gambling hub for decades. Some of the most impressive gambling venues ever built are located here. Obviously, it costs an incredible amount of money to keep these venues operational.
In March, Governor Steve Sisolak announced that all of the state’s casinos were shutting down. Rates of Covid-19 had begun to increase throughout the country. Many felt that major casinos were ideal places for this new virus to spread.
This casino shutdown was incredibly difficult. Las Vegas relies almost entirely on tourism and casinos are a driving force behind the tourism industry here. A huge number of businesses were immediately affected.
In early June, Sisolak began allowing casinos to reopen. Visitors slowly began trickling into the city. Today, most of the major casinos in Las Vegas have now begun operating again. Unfortunately, tourism rates have actually been dropping in recent weeks.
Cases of Covid-19 are still increasing around the country. As a result, fewer people are interested in traveling. Casino companies recognize this and are now doing everything they can to make the city more attractive for potential visitors.
To the surprise of some, hotel prices are still higher than in most other parts of the country.
Taking a Closer Look at Room Rates in Las Vegas
There are many reasons why Las Vegas has grown to become such a popular tourist destination. Many love the wide range of different accommodation prices. In a small area, visitors have access to a massive range of hotel options.
Generally speaking, this city is more expensive than most others in the country. That’s particularly true on the Las Vegas Strip. Here, some of the most expensive hotel rooms in the world are available.
According to new reports, room rates in Las Vegas are lower than they were before the global pandemic hit. They still remain above the US average, though. The average room rate nationally between July 12-18 was $98.56. Many US casinos continue to charge above $100 per night for their average rooms.
Alan Feldman, a member of the UNLV International Gaming Institute spoke about this situation with the Las Vegas Review-Journal.
“I think it speaks to the nature of Las Vegas. There’s so much more to Las Vegas than just a hotel room and pool, even in these times,” he said. Hotels in other markets wish they could get these higher rates, especially in markets that have as many rooms as we do.”
Obviously, room rates increase in times when visitation is up. That may not take place anytime soon. Some still feel that we’ll see hotel prices increase this fall. Unless hotels begin earning more money, many will be in a terrible financial position by the end of the year.
It’s a difficult time for all US casino companies. Many are now focusing solely on increasing their safety measures.
Online Gambling Revenue Becomes More Valuable For Casino Companies
Most states have now allowed their casino industries to reopen. In some parts of the country, this was a complete necessity. Entire cities relied on their casinos and needed these properties to reopen.
Some states have begun to roll back their reopening plans. States like California are even considering forcing casinos to close down again. All of the casinos here are Native American-run, though, and it’s unclear if Governor Newsom has the power to force these to shut down.
States with regulated online gambling platforms are now beginning to rely more on this industry. New Jersey, for example, has seen its online sports betting revenue surge over the past couple of months. More states are now introducing legislation to legalize and tax online sports betting and casino gambling.
Hope is that the land-based casino industry begins to recover. If room rates in Las Vegas drop, perhaps more visitors will begin flocking to this city. In the meantime, casino companies will continue working to boost their online gambling revenue.
Do you think Las Vegas hotel rates should drop? Let us know in the comments section below!