Originally posted by: Kevin Lewis
Right. But you do realize that a hotel-casino is NOT just a hotel? The business model in Vegas, which was wildly successful for fifty years, was to sell the rooms at cost, or even as a loss leader, and rely on revenue from other departments--gaming, restaurants, shows, etc.--to generate profits. Make people feel like they're getting a bargain, and they'll gamble more. Hit 'em for 800 bucks for a weekend stay before they even start gambling, and they'll gamble less, and many won't come at all.
Kevin, 60 years ago land on the strip was cheap. Labor was cheap. They were building simple hotels, and not the gold plated joints that have become popular today. Like you, I don't need the gold plated joints and that's why downtown is my favorite place. The Venetian was not built for you, me, or PJ, but instead it was built for a different crowd and it needed a different business model. $39 rooms, $6 steaks, $5 minimum tables and great gambling odds for the player will not generate the revenue to make a place like Venetian/Palazzo profitable.