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Question of the Day - 02 April 2023

Q:

I have been reading the “locals” Next Door Digest frequented by many locals in Henderson. There is considerable unhappiness with Green Valley Ranch. It seems that the post-pandemic business model has changed to focus to more high-end customers as opposed to locals. I used to frequent it myself pre-pandemic and found it welcoming and friendly to locals. I recently visited a couple of times and found it unwelcoming: no more buffet, $17 for bacon and eggs, coffee extra, tightening (seemingly) of VP and slots. What’s more important, a significant decrease in crowds. It seemed funereal. Is this my (and others) imagination or does it reflect reality in your view?

A:

We keep getting this kind of question and we keep trying to find different ways of answering it. Here's the latest.

The pandemic and subsequent era have been a godsend for casino companies. They discovered they could get by with vastly smaller workforces, fewer amenities, and much higher prices. Not only are profits and cash-flow margins through the roof, customers have generally bent over backwards for this new austerity regime, so grateful are they to be able to come back to Las Vegas.

Since the Sin City customer isn't particularly price resistant, casino companies have been not only willing, but eager, to push the envelope in terms of what visitors will accept. And there’s been little, if any, pushback to this.

Now, in terms of Station Casinos specifically, this has taken the form of phasing out the low-roller joints like Texas Station and Fiesta Henderson in favor of upscale developments in Inspirada and Skye Canyon. Indeed, under-construction Durango Resort is being positioned for out-of-town visitors, despite having only 200 hotel rooms, the bare minimum.

Some amenities are gone for good, particularly buffets. Station was at the forefront of replacing them with food courts/halls that are four-walled to outside operators, trading expenses for increased rent income. But Station is by no means the only offender. 

Tight slots and video poker paytables at Green Valley Ranch are an answer for another day, but higher prices (and $17 for bacon and eggs is awfully steep for a locals casino) are the industry’s way of testing your tolerance for rising prices for its product. And as we've said many times, as long as consumers vote yes with their feet, it will continue. 

If it's any consolation to Hendersonians, out-of-town visitors face even more indignities than locals do, in the form of record-high room rates, resort fees, paid parking, toll booths on the Strip, bare-bones staffing levels, and the like. 

For the time being, the casinos have nothing to worry about and clueless and/or complacent customers are really to blame. Las Vegas has experienced a recovery of historic dimensions, while value and customer service suffer the consequences. What used to be a bargain destination has become a clip joint and very few people seem to realize it and fewer still care.

 

No part of this answer may be reproduced or utilized in any form or by any means, electronic or mechanical, without the written permission of the publisher.

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Comments

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  • Vegas Fan Apr-02-2023
    Amenities 
    Many fewer?

  • tgabrielli Apr-02-2023
    April 1 is over.
    "Toll booths on the strip?" Where? What? When?

  • Ray Apr-02-2023
    different clientelle
    First, tgabrielli beat me to the punch. Still hanging on to the tollbooth gag? But 2nd, you keep comparing the current situation to the 70's, the 80's, the 90's etc. The casinos have ALWAYS done what was accepted by their customers. And they also keep getting newer visitors who don't see it the way we "old-timers" remember. Things change, always have changed, and always will change. If all of us oldies stopped going, they don't care. They already have our kids.  

  • John Hearn Apr-02-2023
    What Ray said
    "They've got our kids." True that. We are the olds now, the folks that we used to see in the coffee shops late and night and chuckle. My first trip to LV was almost 30 years ago now. My first stop (after Vacation World) was the $2 ribeye at Binions. I miss those days, but I still find great values. Case in point--the steamed egg appetizer on the menu at 8 East in Circa downtown. $8 and one of the finest light bites you will ever eat.
    
    Thank god for the Book of Values. They made a big difference on my last trip.

  • pivoss Apr-02-2023
    Probably nothing
    that a stiff, bracing good old fashioned recession can't recalibrate.

  • Luis Apr-02-2023
    Until when?
    Big Corporations only Care about profits, It's been that way forever, and formally small casino companies (Station, Boyd)where holding , but now corporate greed has reared it's ugly head, I still remember when Mr Gaugahn's Coast Casinos where around they where value, and service oriented, much like South Point (Mr. Gaugahn's Baby)is today, but the rest..the rest, wow, I used to stay at "locals" places exclusively because of fun, value, service, but they are turning into the monsters big resorts are now, and I'm not liking it. Sure hope it all stops and they start thinking about their loyal customer base (which I doubt).

  • rokgpsman Apr-02-2023
    Sign of the times...
    It's not something we like to think about, but a business can purposely REDUCE its number of customers and still make lots of money by increasing what it charges those customers that are still willing to visit. Having less customers means less staffing and expenses needed for the business. If you double your hotel room price and get half as many customers you're still making the same amount of money as before, plus you have less housekeeping needed, less sheets and pillow cases to wash, less soap, shampoo and toilet paper usage, etc. The same thing goes for restaurants. They don't have to cater to the budget-conscious customers anymore, there's plenty of folks willing to spend like there's no tomorrow and that more than makes up for the number of customers lost due to price increases. 

  • Bud Ackley Apr-02-2023
    The QoD wins the E.B. White Award for the best sentence of 2023.
    This is the last sentence of today's answer:
    
    "What used to be a bargain destination has become a clip joint and very few people seem to realize it and fewer still care."
    
    Wow! That is terrific writing! I've often been critical of the QoD's writing (Mostly, too many careless typos. My past criticisms earned a separate QoD criticizing *me*.), but that well-written sentence in just 24 words so perfectly summarizes the Las Vegas of today that it more than redeems QoD's prior errors.
    
    Others have described the train wreck that Las Vegas has become, but their lengthy depictions aren't in the same league with QoD's one succinct sentence that tells the whole story.
    

  • David Apr-02-2023
    GVR never busy now
    My wife and I live about a mile from GVR, and used to visit several times per week pre-pandemic.  We always had to park far away from the garage elevators because there were so many cars there.  Now that they destroyed their players club ($3 per point, instead of 3 points per dollar), and took away the buffet, we only visit every 3-4 months to keep the points we have alive.  Since they've done that, we've been able to park right next to the elevators, as the place is never busy anymore.  Ah well, sooner or later the recession will hit, and they'll figure out that they took away too much too soon.  First rule of business is to never let your customer base find a reason to seek alternatives, because they won't be rushing to return.

  • [email protected] Apr-02-2023
    $8 for One Egg?
    "steamed egg appetizer on the menu at 8 East in Circa downtown. $8" I would hardly consider that a "value." LOL

  • [email protected] Apr-02-2023
    Corporate Greed?
    I have a saying that the term corporate greed is redundant...Also that Corporate America is a contradiction in terms because corporations don't really care about America except for the opportunity (freedom) to gouge the consumer...

  • Howard M Apr-02-2023
    Locals No More
    Roughly a decade ago, several friends and fellow Team Members were cast and featured in Station Casinos' "We Love Locals" TV ads. Privately, internally, many of us painfully joked that we were also "locals" yet we were never shown the "love."
    From the post-pandemic closures and sales to where Stations is expanding now, to what they've done with their seniors and rewards points programs, it is 110% clear that catering to "locals" is very low in their priority and marketing strategies.
    Worse yet, the brand that once attempted to claim that it set the bar for loving locals has now shown every other brand it is neither necessary nor profitable to do so. So ... we spend our money elsewhere.

  • Kevin Lewis Apr-02-2023
    Better sentence
    If youse wnats to writes good, refrain from joining independent or dependent clauses with "and."
    
    "What used to be a bargain destination has become a clip joint, but very few people seem to realize it; even fewer care."

  • O2bnVegas Apr-02-2023
    air fare$$
    The airline companies know it too.  So we out of towners take it in the be-hind to fly out there and back.
    
    Candy

  • AL Apr-02-2023
    What IS good . . . .
    All the hubbub over the fleecing of customers by Strip casinos and now by "locals" casinos leaves my 2 downtown casino/hotels smelling like a rose:  (1) Four Queens, and (2) El Cortez.  They definitely cater to the middle class, their prices are reasonable, and their requirements for getting free rooms are, or are close to, the best in Las Vegas.  Those complaints from the Q-poster, the LVA, and the responders about Strip and locals places are almost nonexistent in these 2 downtown places.