With 130,000 hotel rooms available (148,978 if you serve Nye County and Laughlin), you might think there are “deals”. Chances are you’re wrong! Finding an “agreement” in a city the properties of the Major Resort have capacity for is becoming increasingly difficult. Because? Because the frontline properties are controlled by a select group of companies that has no incentive to discount.
Vegas Supply and Demand Law
Consider for a moment the simple law of “Supply and Demand.” When supply is high and demand is low, prices go down. Vegas is a high point, demand is high and supply is low. How could this be with 130,000 rooms? The answer is simple: 30 million visitors a year and they are growing! In fact, the growth rate is so phenomenal that Mega Resorts like Mandalay Bay ($ 435 million of $ 375 million Spa Tower with 1,120 suites completed in December 2004) and The Venetian (currently expanding) and the recently completed 2.4 Wynn Las Vegas (opened in April 2005) is adding thousands of rooms to the “Heart of the Strip.” So phenomenal is the growth that even state financiers like Donald Trump took action. The demand for rooms exceeds the supply, so prices go up.
According to an interview published on July 30, 2004 in USA Today, Trump’s plans include a 64-story hotel-condominium tower to be built on a portion of the Frontier Hotel property opposite the Wynn Las Vegas Resort and downtown. commercial Fashion Show.
The $ 300 million project, scheduled to begin construction in 2005, will feature 1,000 hotel rooms and 50 luxury residential units modeled after the Trump International Hotel and Tower in New York City. There will be no Casino on the property.
Only 10% of hotels in Las Vegas are booked online
In several articles I have researched this year published in various business journals and by hotel industry analysts, the actual booking rate for hotels offering online services to their visitors is approximately 10% nationwide. This I think will also be an accurate representation of Las Vegas. (Our company manages several websites that offer hotel reservations and these numbers match ours).
Try more: “Only 10% of our rooms are booked at Hyatt.COM,” said Gary Gotling, director of sales and marketing at Hyatt Regency Tampa.
This means that 90% of you use the internet to gather information, but don’t actually make your reservation online. The preferred booking method for traditional travelers and phone calls are still the preferred method. The Internet is used as a source of information gathering, and little else. Great players know it and use it. Again, there is no incentive to offer lower rates if your customers do not benefit. I will briefly touch on the issue of room taxation by saying that most local governments hate the internet because rooms booked online by state interests are being cut in the available tax pool. Expect local government officials to act sooner rather than later on this issue.
So where does the money go when you book online?
If you search Vegas.com you will find that they are owned by Greenspun Media Group (Henderson, NV) which publishes the Las Vegas Sun Daily, and owns Vegas Magazine, Showbiz Weekly, In Business, Las Vegas Weekly, VegasGolfer, Las Vegas Life , and The Ralston Report. Greenspun Media is part of the Greenspun Corporation, which also owns local channel 25 UPN. Greenspun is a partner on Las Vegas ONE, an all-news cable channel. American Nevada, the real estate division of The Greenspun Corporation, is among the most recognized commercial and residential developers in the Las Vegas Valley. Its annual advertising budget exceeds 7 figures. Someone has to pay the price for all this advertising.
You can try the popular LasVegas.com website which has an interesting and historical history. The site’s domain was licensed in 2002 to the Stephens Media Group of Littlerock Arkansas (Las Vegas Review Journal, Hawaii.com) at Mandalay Resort Group and Parkplace Entertainment. Follow now – 2004 Park Place became Caesars Entertainment, which in turn was acquired by Harrah’s Entertainment. The deal came just a month after MGM / Mirage agreed to buy Mandalay Resort Group. Need a room in the fringe? Hmmm – I think the price will be pretty consistent! And think you could have owned LasVegas.com by 1997!
IAC (InterActiveCorp) managed by Mega Financier, Barry Diller operates these online travel booking agencies
· Expedia.com Holidays
· Expedia packages in Las Vegas
Note (s): Expedia is the number 1 online travel booking for third-party internet-based booking agencies. But their “total reserve pie” is still very small. Diller also oversaw the recent acquisition of “Ask Jeeves” for just $ 1.85 million. Don’t expect room prices to go down anytime soon.
Saber Holdings Corp owns:
Travelocity – number 3 in travel reservations
Note: Saber was the “big player” in the travel agent industry, as most travel agent computers were tied to their reservation systems. Travelocity is number 3 on Expedia and Orbitz (now owned by Cedant Corp.)
Cedant Crop is the best Franchiser Hotel with more than 6,400 locations, property or franchise:
· Orbitz – number 2 in travel visitors
FYI – Cadant also owns Avis and Budget Rent A Car, Fairfield Resorts, Time Tickets.com and Century 21 and Coldwell Banker real estate franchises.
So where does this come from? I recommend that you do a quick read of the following tips.
Quick Tips for Vegas Visitors on a Budget?
You’re probably thinking I’ll suggest visiting in the “low season”. Do not do it! August temperatures often exceed 110 degrees, and it is not the air temperature that radiates from the concrete and asphalt. No, I’m going to suggest you do something much simpler, stay off track. Car hire is cheap when you compare them to the exorbitant prices of the best Mega Resorts “On Strip”. Try a hotel at Henderson or Summerlin. I would suggest smaller resorts like the SunCoast or The Orleans.
Get a rental car and park behind Excalalibur, New York, New York or the trendy mall (it’s covered and very safe). Click on internet ads to see what’s available. While 90% of rooms are booked with capacity, hotels that are not fully booked actually advertise. Click on these ads. I once stayed at the Henderson Fiesta for $ 29.95 a night for 3 nights in a row and had a suite with 2 queen rooms. I found this deal in an internet ad. In fact, when I called the hotel to try to get an even better deal, I was told I had to book online. Try corporate accommodation as it is usually full on weekdays, but on weekends available when business travelers return home. Visit the hotel websites where you may want to stay and sign up for email promotions to get offers sent directly before your trip (use a free address like Hotmail for this purpose). Ask at the counter when you sign in for any other benefits or offers available to customers. It’s like asking for the window seat on the plane, if you don’t ask you won’t get it. And my last tip is Form before fashion: bring your most comfortable walking shoes and try bottled water at your local store before you arrive.