With an average ticket price of around $35, it seems to me that the High Roller ferris wheel probably turns (pun intended) a profit. Is this true?
Caesars Entertainment, which built and operates the High Roller, has never broken out the cost of the observation wheel from the entire LINQ open-air pedestrian mall, which, believe it or not, cost $550 million to open.
We do know that the London Eye, a similar observation wheel that debuted in 2000, cost approximately $120 million, but being located on a river bank, it had construction issues. So this may not be an apples-to-apples comparison, though it probably provides something of a baseline.
Then there are the operating expenses and the number of High Roller riders on a daily basis, about which Caesars was unresponsive when we inquired. So not knowing anything about the cost of the wheel, the overhead, or the gate, it's essentially impossible to even guess at how much money it's making or even if it's turning a profit.
At one point a few months after the High Roller began operating in March 2014, Caesars announced that it might start reporting ROI (return on investment) on the High Roller, which suggested to us that it was doing well. But that was still before the novelty wore off and we never did see any figures, so maybe business slacked off early on.
All that said, the High Roller has 28 cabins, each of which can accommodate up to 40 riders, for a total maximum ridership of 1,120. When the wheel is full, at an average $35 per ticket, that's $39,200. The wheel operates 68 hours per week these days, so assuming that the High Roller makes a complete run every hour (including on and off loading) and is always full (and yes, we know this is an erroneous assumption, but it gives us a maximum dollar amount), that adds up to $2.65 million in weekly gross revenue or nearly $140 million per year.
Even if the ride cost double the London Eye at $240 million and earned half the max at $70 million a year, even when factoring in overhead, it wouldn't take all that long for it to be turning a profit.
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[email protected]
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