Question of the Day - 30 December 2020

YES.

Every for-profit business will attempt to survive any business downturn like a pandemic. Several methods are employed to accomplish this survival from total shutdown until the economy improves or minimal, less expensive, staying open awaiting economic improvement.

Therefore, upon reopening a business or expanding as the economy improves will in both cases have losses to recover. Those losses will reflect your perception of more or less expensive. Therefore, your perception of those losses or expenses will ultimately determine your belief if Las Vegas is now more or less expensive.

So we cannot nor will not even begin to reason out what your perception
will be. We can only make you aware of the factors that determine those perceptions.

Not to mention that those factors influence each individual business, so an industry as a whole, such as casinos, will have amongst them both more expensive and less expensive outcomes.

However, in order to be competitive, prices will become the same throughout an industry making the recovery time for losses different for each business within that industry.

I’m an economist (really - I am!) and like in much of macro economics the answer is “It depends”. 

The short term reaction is to entice people back using cheap room rates (I looked at a trip the other day and it was half the usual price) but this only goes so far - if table games, slots, restaurants, bars and clubs can only operate at a reduced capacity then prices will rise as fewer people are able to eat or gamble at the same location whilst the place still has the same fixed costs (a bar needs 1 server whether there are 10 people drinking or only 1 for example)

So once we reach 100% capacity (of the new reduced limits) then prices will rise

I wrote a piece on my blog about it earlier this year (nothing on my blog should be treated as investment advice, or humour, and it’s definitely not for those who are easily offended!) https://ayecarambapoker.blogspot.com/2020/04/the-new-normal.html?m=1

Yes or No doesn't answer the question as to whether you think it will be more expensive or whether it will be less expensive.  If you answer Yes or No all you are saying is that it will either be more or less expensive, not which do you think it will be.

I think the options are "Yes - it will be more expensive" or "No - it will not be more expensive".  Or "Yes - it will be less expensive" or "No - it will not be less expensive".  Mixing Yes/No and More/Less is confusing. 

They'll keep table minimums higher than before, since they're getting players.

It will remain the same. The competitive market forces will shape the pricing based on the increased demand as things gradually move in that direction.  The losses will be history.  Remember that the pain of the industry is offset much by the cutting of payroll and other expenses.  It's the people who work all the jobs that are primarily subsidizing the industry right now by being laid off or working reduced hours.  Things will improve for everyone post pandemic.

Ithink that as the vaccine first becomes available to the general public, i.e. March/April, the Hotels, etc. will keep costs as low as they are now, they will have to for people who got reservations for the spring now, like I did.

There is a LOT of pent up demand of people with cabin fever so about June/July and the general public, at least those who want to get the vaccine, flocking to Las Vegas.  (Think the crowds that Las Vegas gets during the Consumer Electronics Show, but for about 4-5  months)   I would predict that about June and on, the hotels, etc.  will take advantage of this and raise room rates, resort fees, etc.

People are desperate to return to “normal,” including returning to their favorite places/activities. They long to gather for concerts and other entertainment, to engage in all manner of large gatherings. They want to resume previous pursuits, including live, in-person gaming.  You can bet that the suppliers of these elements will take advantage of the increased demand to raise prices to the max and that desperate consumers will pay.  The rest of us will just have to wait it out until it settles down, if it ever does.  

Prices will increase as long people are willing to pay, seeing we are going to be in this probably for another 9 months people will be ready to party

Based on the table game minimum increases since all this started, it seems pretty clear to me that Vegas is going to be out to make back every penny that it lost during the pandemic as soon as possible. I would say look for this to extend to higher (and new!) concession fees at restaurants and stores as well. The bottom line will always be the bottom line, and while I think there will still be discounts to get people to come back, insofar as cheaper hotel rooms, once you arrive in town, look for everything to be much more expensive. From your taxi cost as you leave the airport, to that even-tighter slot machine when you’re waiting to leave the airport days later, and all points in between. 

Since this is the preview, you are looking for ideas, not answers, yet all the comments are what their comments should be next week (except for the comments wanting a clearer definitions of yes or no). Actually, the yes/no answer becomes an opinion, with the reasons being "greedy, rich, corporations money-grabbing to make up for losses". I would predict that the LVA's typically cynical responders will make the poll heavily slanted toward "more expensive". I'm not so sure. As more and more places outside of Vegas are becoming available, including online gambling, the competition may cause Vegas to do more to make it THE go to destination. The "maybe" or "it depends" type of answer might be the only real choice. How Illinois, Iowa, Wisconsin, Indiana and Michigan hotel/casinos handle the recovery might affect whether or not I make more or less Vegas trips, which in turn may affect how Vegas tries to lure us back.

YES  1. Cause they can  
     2. They will be desperate to make up the huge $ shortfall that this year will have created. 
     3. While they know people are wary of traveling...they also know that a LOT of people are desperate to get out..and have a pent up need to want to enjoy themselves again...  and they WILL take advantage of that demand.  Bargains will be VERY few since they will not be necessary.
     4. Because they CAN.                

Sure, the room rates will go down but the prices of everything else you don't think about until you get there will go up: Food, parking, shows, attractions and so on. You'll think you're getting a bargain until you get there and start trying to actually do stuff.

More expensive later or the same as it was + inflation and greed.

Of course overall prices will go up, primarily since they've never gone down. However, the large corporations were far more likely to weather the pandemic and nobody ever really feels sorry for them after all of the mergers, acquisitions and overextended borrowing, so I hope when people do start returning in larger numbers that many make the effort to patronize small businesses on and off the strip. The corporations' shareholders don't need our help, but the small business people do.

I would assume that the casinos want to bring people back in droves, so room rates will be low, food prices will be reasonable, and there will be plenty of low limit table games.  Now who knows with the shows, but might not be a bad idea to make them cheaper to bring back more people to see them.  

Now, this may just be a pipedream, but would love to see it happen. 

My anwer is based on hope. I do hope Las Vegas returns to their basics, what made vegas VEGAS. Great atmosphere, Great Enternainment, good gambling, Food ( not neceseraly gourmet), something for evrybody, great service, making an efort to make you feel special ( not just whales, but everybody), al that at very reasonable prices. Will it happen?, well it can.

Leave off "Yes" and "No".
Just word it "More expensive" and "Less expensive" as the two options.

Candy

1. As expensive as before but worse experience 2. More expensive and same experience 3. More expensive AND worse experience.

Note that none of my choices include "less expensive," because I'm not delusional. 

If you're just talking total amount of money spent, then yes/no would work, but in my opinion that won't tell the full story. For example, rooms may be cheaper, food may be the same, but slot machines may pay less in wins and table games may have higher minimums. That means if you don't gamble, you answer would be no. If you do gamble, then how much you gamble impacts whether you answer yes or no. I would suggest splitting costs into the various categories. Rooms yes/no, food yes/no, entertainment yes/no, gambling yes/no, etc. That would give a more complete picture of what people's expectations really are.

Vegas suits have demonstrated their belief in chasing deep pockets, or at least foolish spenders. But, post-pandemic, most people are going to be broke and/or in debt. Vegas may finally learn, the hard way, not to bleed its host dry. Yes, there will be deals for a short while, but attempts to raise prices will backfire. Vegas is in for the same rough ride as the rest of us. 

Everyone wants to answer the poll preview and can't wait until the actual poll posts... including me. Keep it as a yes/no question, but you will get a LOT of comments on this poll when it goes live. I mean what else does everyone have to do while socially distancing?