The good old days when Las Vegas casinos enticed players with freebies/discounts on rooms, meals, shows, generous player points, etc. are long gone. Yet the current number of visitors and bottom-line casino profits continue to soar. What will it take for gamblers to wise up and not visit Las Vegas?
Though we get this question frequently and we answer it regularly, it baffles us, too, in that it seems like no price hike, closed buffet, higher table minimum, or expensive hotel room is enough to deter the determined Las Vegas tourist.
This era of conspicuous consumption was, some theorize, brought on by the prolonged cooping-up necessitated by the pandemic. Las Vegas, being unique in the U.S. as a destination (sorry, Atlantic City), is proving not the least bit price-resistant. So, the theory runs, consumers who were denied their fix of Vegas for the better part of two years won’t balk at any price point or restriction of offerings.
The industry is as happy as a pig in muck with this development, as you noted. It’s absolutely great for the visitor business. Las Vegas locals seem to becoming more price-sensitive, as their gambling spend has been curbed in recent months. But tourists are another story.
Also, during the pandemic, the industry discovered that it could run its casinos and hotels with skeletal staffs, while cash-flow and profit margins skyrocketed. Since this cutback seems to have bothered few, it has been institutionalized as the new normal. And we do mean "institutionalized," as the Nevada Legislature just passed a law removing any mandate for daily hotel-room cleaning, another blow to the workforce — and sanitary standards.
Longtime Las Vegas veteran and casino consultant Dennis Conrad says you've asked “the million-dollar question.” He says it is the “same question for when Atlantic City opened and gamblers stood in lines for hours to play $25-minimum-bet table games and gamblers in Tunica when it opened (and some other places) paid a $25 entry fee just to get in the joint."
“So a couple of answers. First, many gamblers either don’t know or don’t care that they're being gouged. Second, Vegas is so alluring, they’ll pay almost any price to be there. Third, the lure of the ‘flutter,’ as the Aussies call it, is too strong to resist. Finally, I think there's a sense of ‘What the hell can we do about it?' (a la credit card charges) and, in the classic words of Billy Joel, they just 'rub their neck, write a check, and go their merry way.'
“I don’t think customer pushback will change things very easily, but when a savvy operator uses an ‘extreme-customer-value’ strategy and steals all the business, then you might see things change,” he concludes.
We’re not holding our breath.
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Kevin Lewis
Jul-02-2023
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Jackie
Jul-02-2023
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[email protected]
Jul-02-2023
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That Don Guy
Jul-02-2023
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John Dixon
Jul-02-2023
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Wild Bill
Jul-02-2023
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Sandra Ritter
Jul-02-2023
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Luis
Jul-02-2023
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John Hearn
Jul-02-2023
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Ray
Jul-02-2023
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[email protected]
Jul-02-2023
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Kevin Rough
Jul-02-2023
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Doc H
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Michael B
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Sue Bross
Jul-02-2023
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Raymond
Jul-02-2023
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Jennifer Opitz
Jul-02-2023
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CLIFFORD
Jul-02-2023
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Roger Gallizzi
Jul-02-2023
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Tim Clark
Jul-02-2023
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Michael Taylor
Jul-02-2023
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Scott Miller
Jul-02-2023
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Andrew Krum
Jul-02-2023
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Doc H
Jul-02-2023
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