With 130,000 hotel rooms available (if you invest 148,978 rooms in Nye County and Laughlin), you might think you will find a “deal.” You are probably wrong! Finding “deals” in cities where properties in major resorts are close to production capacity has become increasingly difficult. why? Because the top resort properties are controlled by a select group of companies without discounts.
Las Vegas law of supply and demand
For a moment consider the simple law of “supply and demand.” When supply is high and demand is low, prices fall. Las Vegas is an emerging city with high demand and low supply. How about 130,000 rooms? The answer is simple: there are 30 million visitors every year, and it’s still growing! In fact, the growth rate is so amazing that things like Mandalay Bay (43-story, US$375 million spa, 1,120 suites completed in December 2004), Venetian Hotel (currently expanding) and recently completed Super resorts such as the $2.4 billion Wynn Las Vegas (opened in April 2005) are adding thousands of rooms to the Heart of the Strip. Such amazing growth has made even state financiers like Donald Trump take action. Demand for rooms exceeds supply, so prices continue to rise!
According to an interview published in USA Today on July 30, 2004, Trump’s plan included a part of the Frontier Hotel property opposite the Wynn Las Vegas Resort and next to the Fashion Show shopping mall. Build a 64-story hotel apartment building.
The planned $300 million project is scheduled to begin construction sometime in 2005 and will have 1,000 hotel rooms and 50 luxury residential units modeled on the Trump International Hotel Tower in New York. The hotel will have no casino.
Only 10% of Las Vegas hotel reservations online
In the several articles I studied this year, these studies were published in various business journals and analyzed by Hotel Industry analysts. The actual booking rate of hotels that provide online services to tourists is about 10% nationwide. I believe this is also an accurate representative of Las Vegas. (Our company operates several websites that provide hotel reservations, and these numbers are consistent with our website).
Further proof: “Only about 10% of our rooms are booked on Hyatt.COM,” said Gary Gotling, Director of Sales and Marketing at the Hyatt Regency Tampa.
This means that 90% of people are using the Internet to collect information, but they are not actually booking online! Traditional travel agencies and telephones are still the preferred method of booking. The Internet is used as a source of information collection, nothing more. The big players know this and use it to their advantage. Likewise, if your customers do not take advantage of them, there is no incentive to offer lower prices. I will briefly talk about room taxation, saying that most local governments hate the Internet because rooms booked online for national interest are reducing their available tax pool. It is hoped that local government officials will take early action on this issue.
So, when you book online, where will your money go?
If you search Vegas.com, you will find that they are owned by Greenspun Media Group (Henderson, Nevada). Greenspun Media Group publishes the Las Vegas Sun and owns Vegas Magazine, Showbiz Weekly, In Business, Las Vegas Weekly, VegasGolfer, Las Vegas Life and Ralston Report. Greenspun Media is part of Greenspun Corporation, which also owns the local Channel 25 UPN. Greenspun is a partner of the news channel Las Vegas ONE. American Nevada, the real estate arm of Greenspun Corporation, is one of the most recognized commercial and residential developers in the Las Vegas Valley. Their annual advertising budget exceeds 7 figures! Someone must pay for all advertising.
You might try the popular website LasVegas.com, which has a long and interesting history. The domain of the site was licensed to Mandalay Resort Group and Parkplace Entertainment from Stephens Media Group (Las Vegas Review Journal, Hawaii.com) of Littlerock Arkansas in 2002. Follow up now-in 2004, Park Place became Caesars Entertainment, which was acquired by Harrah’s Entertainment. The transaction was only one month after the MGM/Milaki firm agreed to acquire the Mandalay Resort Group. Need a room on the strip? Hmm-I think the pricing will be fairly consistent! And think about it, you might have LasVegas.com as early as 1997!
IAC (InterActiveCorp) operated by Mega Financier Barry Diller operates these online travel booking agencies
·Expedia’s Las Vegas Package
Note: On Expedia, third-party Internet-based booking companies rank first in total online travel bookings. But their share of the total “booking party” is still small. Mr. Diller also oversaw the recent acquisition of “Ask Jeeves” for only $1.85 billion. Don’t expect these prices to fall anytime soon.
Sabre Holdings Corp owns:
Travelocity-#3 in travel booking
Note: Since most Travel Agent computers are tied to the reservation system, Sabre is a “big player” in the Travel Agent industry. Travelocity ranks third after Expedia and Orbitz (now owned by Cedant Corp.).
Cedant Crop is the world’s top hotel franchisee with more than 6,400 locations and owns or franchise rights:
· Orbitz-ranked second among travel visitors
FYI-Cadant also owns the Avis & Budget Rent A Car, Fairfield Resorts (timeshare resort), Cheap Tickets.com, Century 21 and Coldwell Banker real estate franchise.
So, where will this leave you? It is recommended that you quickly read the following tips.
A quick tip for Las Vegas travelers on a budget?
You might think that I suggest you visit during the “off season”. Don’t do it! The temperature in August is usually over 110 degrees-this is the temperature, not the heat of concrete and asphalt. No, I suggest you do something simple-leave it alone! Compare your rental car prices with the high prices of the top “On Strip” large resorts, they are cheap. Try a hotel in Henderson or Summerlin. I recommend small resorts like SunCoast or The Orleans.
Find rental cars and parking lots behind Excalibur, New York New York, or Fashion Show Mall (covered and very safe). Click on Internet Advertising, and then view the available content. Although 90% of the rooms are fully booked, hotels that are not fully booked are actually advertising! Click on these ads! I used to stay at the Carnival Henderson Hotel for 3 consecutive nights for $29.95 per night, and I have a suite with 2 queen-size beds! I found this deal on internet advertising! In fact, when I called the hotel to get a better deal, they told me that I must book online! Try to use company housing, as it is usually full during working days, but it can be used on weekends when business travelers return home. Visit the website of the hotel where you may wish to stay and sign up for its email promotion so that you can send you offers directly before you travel (for this purpose, please use a free address like Hotmail). When logging in, ask the service desk if there are any additional offers or offers available to guests. It’s a bit like asking for a window seat on an airplane. If you don’t ask for it, you won’t get it. My last tip is “form before fashion”-before checking in, bring your most comfortable sneakers and buy bottled water at your local grocery store.