After years of selling indulgence and excess, Las Vegas is pivoting to value.
The city’s tourism agency just launched a campaign focusing on its broad appeal and affordability, while casinos throughout the valley are rolling out deals and incentives designed to bring back the bargains that once defined Las Vegas.
The timing is not coincidental. Visitation fell by double-digit percentages in June and July, and August was only marginally better, according to industry sources.
The shift toward better value suggests industry leaders have heard the mounting criticisms over high costs and are responding to questions about whether a Las Vegas trip is still worth the price.
‘Value has been a concern’
“I think it’s clear that value has been a concern on the part of some of our customers,” Steve Hill, president and chief executive officer of the Las Vegas Convention and Visitors Authority, said during a recent press conference following the release of July’s tourism numbers, which showed a 12 percent year-over-year decline. “We’re aware of that. The resorts are aware of that.”
Hill noted that several Las Vegas casinos “already started taking steps to address that concern, and they’re going to take more.”
That awareness has translated into tangible offers across the Strip to downtown Las Vegas and beyond.
Examples range from Resorts World Las Vegas ditching parking fees to the Plaza’s all-inclusive package to Station Casinos, which operates multiple properties catering to locals, such as Red Rock, Durango and Green Valley Resort, introducing $1.99 margaritas, $3 beers and $3 shots.
Just this week, Caesars Entertainment announced a $300 special for three of its mid-Strip properties — Flamingo, Harrah’s and The Linq — that includes all taxes and fees for a two-night stay and $200 worth of food.
“There’s no better time to visit Vegas, and this package is an incredible value in the heart of The Strip,” Dan Walsh, senior vice president and general manager of the three resorts, said in a press release.
On Thursday, the LVCVA joined the push to change the narrative, unveiling its “Welcome to Fabulous Las Vegas” marketing campaign, which “reclaims Las Vegas as the ultimate escape at an unbeatable value,” according to a news release. More details will be shared in the coming weeks, but the expectation is that most, if not all, Las Vegas resorts will be participating in a wide-ranging effort to reshape the city’s image.
“Las Vegas was built on hospitality, and this campaign is our renewed promise that as our city grows, our foundation remains unchanged: we are committed to providing fabulous experiences for every visitor, at every price point,” Hill said in the announcement.
‘Lessons to be learned’
The message is being shared by the industry’s top voices.
Speaking from the Bank of America Securities Gaming and Lodging Conference in New York City on Thursday, Bill Hornbuckle, president and CEO of Las Vegas-based MGM Resorts International, told CNBC’s Contessa Brewer that the city had a “tough summer” and things are going to be changing.
“I think there’s lessons to be learned in terms of value and value creation,” he said. “(But), there is value and there’s always been value (in Las Vegas). We let the narrative get away from us and shame on us. We need to do a better job, but we have not lost track of who and what we are and where we’re going.”
Amanda Belarmino, an assistant professor at UNLV’s William F. Harrah College of Hospitality, said the city’s shift toward luxury happened gradually over the last 15 to 20 years. She noted that Las Vegas is constantly evolving, and a reversion to a value-centric destination may be beneficial.
“The decline in tourism spend we are seeing is likely more impacted by outside influences than by internal pricing mechanisms,” Belarmino said. “That said, discounting may be effective to increase short-term demand.”
Jonathan Jossel, CEO of the Plaza hotel-casino in downtown Las Vegas, said that while there has always been value, some of the recent pricing has gone too far. He said the city would do well to remember who it serves.
“What about the person that comes here on a normal summer that just wants to have a good time, do some gambling and have fun?” he asked. Jossel said part of his property’s success hinges on having “something for everyone,” such as a high-end steakhouse and player-friendly gambling conditions. “It’s about finding the balance where you’re offering people good value and also an experience to match up with that.”
Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
