With 130,000 hotel rooms available (148,978 if you throw in County Nye and Laughlin), you might think there would be "deals" to be found. You would probably be wrong! It is becoming increasingly difficult to find an "agreement" in a city whose properties in large resorts are operating at full capacity. Why? Because the best resort properties are controlled by a select group of companies who have 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 fall. Vegas is a booming city, demand is high and supply is low. How is it possible with 130,000 rooms? The answer is simple: 30 million annual visitors and growing! In fact, the growth rate is so phenomenal that mega-complexes like Mandalay Bay (43 floors, $ 375 million spa tour with 1,120 suites completed in December 2004) and The Venetian (currently expanding) and the recent $ 2.4 billion Wynn Las Vegas (opened April 2005) adds thousands of rooms to the "Heart of the Strip". The growth is so phenomenal that even state funders like Donald Trump are getting into action. The demand for rooms exceeds the supply, so prices are going up!
According to an interview published on July 30, 2004 in the United States, Trump is currently planning a 64-story condominium tower to be built on part of the Frontier hotel property across from the Wynn Las Vegas Resort and next to the Fashion Show Mall.
Scheduled to start construction later in 2005, the $ 300 million project will include 1,000 hotel rooms and 50 luxury residential units modeled on the Trump International Hotel and Tower in New York. There will be no casino on the property.
Only 10% of Las Vegas hotels are booked online
In several articles that I have researched this year and published in various business journals and by hotel industry analysts, the actual booking rate for hotels offering online services to their visitors is about 10% nationally. I think it's also an accurate representation of Las Vegas. (Our company maintains several websites offering hotel reservations and these numbers are consistent with ours).
Additional proof: "Only about 10% of our rooms are booked on Hyatt.COM," said Gary Gotling, director of sales and marketing for Hyatt Regency Tampa.
This means that 90% of you use the Internet to collect information, but do not actually make your reservation online! Traditional travel agents and phone calls remain the preferred method of booking. The Internet is used as a source of information gathering, and nothing more. The big players know this and use it to their advantage. Again, there is no incentive to offer lower rates if your customers are not taking advantage of it. I will briefly address the issue of room taxation by saying that most local governments hate the Internet because rooms reserved online by out-of-state interests are reducing their available tax pool. Expect local authorities to act on this issue as soon as possible.
So where does your money go when you book online?
If you search for Vegas.com, you will find that they belong to Greenspun Media Group (Henderson, NV), which publishes the Las Vegas Sun Daily Newspaper, 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 the local channel 25 UPN. Greenspun is a partner of Las Vegas ONE, a cable news 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. Their annual advertising budget exceeds 7 figures! Someone has to pay the price for all of this advertising.
You can try the popular LasVegas.com website which has an interesting and rich history. The site domain was licensed in 2002 by the Stephens Media Group of Littlerock Arkansas (Las Vegas Review Journal, Hawaii.com) to the Mandalay Resort Group and Parkplace Entertainment. Follow now – 2004 Park Place became Caesars Entertainment, which in turn was bought by Harrah & # 39; s Entertainment. This agreement came just a month after MGM / Mirage agreed to buy the Mandalay Resort Group. Need a room on the Strip? Hmmm – I think the price is going to be fairly consistent! And to think that you could have owned LasVegas.com until 1997!
IAC (InterActiveCorp) managed by Mega Financier Barry Diller operates these online travel booking agencies
· Expedia Vegas Packages
Note (s): Expedia is No. 1 in the total number of online travel reservations for third-party Internet booking agencies. But their share of the total "reservation pie" is still very small. Diller also oversaw the recent acquisition of "Ask Jeeves" for just $ 1.85 billion. Do not expect room prices to drop anytime soon.
Saber Holdings Corp owns:
Travelocity – # 3 in travel reservations
Note: Saber was the "big player" in the travel agent industry, as most travel agent computers were linked to their booking systems. Travelocity is # 3 behind Expedia and Orbitz (now owned by Cedant Corp.)
Cedant Crop is the best hotel franchisor in the world with more than 6,400 locations and owns or franchises:
· Orbitz – n ° 2 of travel visitors
FYI – Cadant also owns Avis & Budget Rent A Car, Fairfield Resorts (timeshare resorts), Cheap Tickets.com, Century 21 and Coldwell Banker Real Estate Franchises.
So where does it take you? I suggest that you quickly read the tips below.
Quick Tips for Visitors to Vegas on a Budget?
You probably think I would suggest that you visit "off season". Do not do that! Temperatures in August often exceed 110 degrees – and it is the temperature of the air and not the heat radiating from concrete and asphalt. No, I'm going to suggest you do something a lot simpler – stay away! Car rentals are cheap when you compare them to the exorbitant prices of the best Mega Resorts "On Strip". Try a hotel in Henderson or Summerlin. I suggest smaller stations like The SunCoast or The Orleans.
Get a rental car and park behind Excalibur, New York New York, or in the Fashion Show Mall (it's covered and very secure). Click on Internet Ads and see what is available. While 90% of rooms are booked at full capacity, hotels that are not fully booked advertise! Click on these ads! I stayed once at Fiesta Henderson for $ 29.95 a night for 3 nights in a row, and I had a suite with 2 double bedrooms! I found this offer on an internet ad! In fact, when I called the hotel to try to get a better price, they told me that I had to book online! Try corporate accommodation as it is usually full during the week but available on weekends when business travelers return home. Visit the websites of the hotels you want to stay in and sign up for their promotions by email so that deals are sent to you directly before your trip (use a free address like Hotmail for this). Ask at the office when you log in for any additional benefits or offers available to customers. It's a bit like asking for the window seat on the plane, if you don't ask, you won't get it. And my final piece of advice is Form before fashion – bring your most comfortable walking shoes and fill up with bottled water at the local grocer before checking in. Enjoy it!