Giving Away the House? Las Vegas Resorts Reopen With Rock-Bottom Rates
Skift Take
Vegas casino operators may care more about occupancy over daily rates in the initial recovery, but prolonged room discounts can alter guest rate expectations — and sink hotel revenue streams for the long-term.
Initial visitors to Sin City following coronavirus shutdowns may feel like they hit a jackpot before they even board a plane.
Some Las Vegas casino resorts reopened last week after Nevada lifted coronavirus restrictions that had been in place since late March. Travelers looking to book a room were greeted by an array of deals at normally expensive Las Vegas Strip resorts.
The five-star Bellagio had mid-week rooms for $125 per night later in the summer. Wynn Las Vegas offered a $150 per night weekend package at the end of June that included a $100 dining credit. The Cosmopolitan is waiving all self-parking fees, and other resorts like the Sahara Las Vegas said they would waive resort fees, sometimes known as “the most-hated fee in travel.”
It wasn’t too long ago when travel analysts said offering steep discounts right out of a downturn would bake in further financial duress for struggling operators. But analysts argue Las Vegas is a different kind of travel animal and has enough revenue streams to make it pencil out.
“If you want to induce someone to come to Miami, you still really need the traveler to buy
