|Gambling experts have confirmed that Las Vegas operators are slashing prices on room rates in order to attract additional guests to local casinos and counter competition from other nearby areas. Online competition – from discount hotel bookers rather than from online casino themselves are partially to blame.|
Analyst Jason Ader of Bear, Stearns and Company says 'At the midtier and low-end levels, we believe hotels particularly in Las Vegas, are in a price war,' further suggesting that low cost vacation alternatives, package holidays and cruise trips are becoming increasingly more attractive for the leisure traveler, which is the factor driving competitive price cutting in Las Vegas.
Whilst Bear, Stearns and Co analyst Michael Tew suggests that lack of new gamming destination resorts in Las Vegas along with the need to book added hotel rooms coming on line, is infusing the problem. Bellagio, Mandalay Bay and Venetian among a number of other casino operators have added rooms that need filling yet without any new attractions, lowering the price is their only way of competing. Information gathered by Bear, Stearns and Co during Chinese New Year weekend indicated that average weekday rates on the Strip were down by more than 10% to $135 a night, whilst weekend rates were down by an astounding 20% to $195 per night, in contrast with last year. Likewise an average room rate on the Strip for the week beginning Feb. 17 and ending Feb. 23 was down to $138, cut by 3% compared to last year. All in all, it was suggested that demand for hotels on the Strip was modest and therefore the near future was unforeseeable.