- New reports have shown that room rates in Las Vegas are currently above the US average.
- This is a surprise to many who expected the companies to drop the room rates to lure more guests.
- Tourism rates have been dropping in recent weeks but, several casino companies still charge at least $100 per night for an average room.
- However, room rates have decreased since the pandemic started.
Despite the opening of all of the Las Vegas Strip’s major casino-resorts and companies trying to do everything possible to boost tourism in Sin City, new reports have shown that the city’s hotel prices are still above the US average.
This is surprising because the companies should have dropped the room rates to lure more visitors.
Recent weeks have seen a drop in tourism rates because COVID-19 cases are still rising across the country. Fewer people want to travel under such circumstances. Casino companies are aware of this. That’s why they are applying every strategy that can lure potential tourists to Las Vegas.
Almost All Casinos in the City are Open
As the world’s biggest gambling hub, Las Vegas has seen companies build some of the most fascinating gambling venues. Keeping these properties operational requires huge amounts of money.
When Governor Steve Sisolak shut down all Nevada state casinos in March due to the rising cases of COVID-19, the industry was hard hit and several businesses felt the pinch. This is because Sin City depends almost entirely on tourism, whose driving force is casinos.
While Sisolak’s reopening of the casinos in early June allowed most of the major companies to resume their operations and get some visitors, tourism rates have been dropping recently. Surprisingly, Las Vegas’ hotel prices are still higher than in several other regions of the US.
Why is this so?
As a popular tourist destination, Las Vegas boasts an extensive range of hotel options and prices. However, it is also a very expensive city compared to several other cities in the country.
New reports have revealed that even though the city’s room rates are currently lower than they were before the virus hit the globe, they are still above the nation’s average. From July 12-18, the national average room rate was $98.56. Several casinos in the US are still charging at least $100 per night for an average room.
A member of the UNLV International Gaming Institute, Alan Feldman, said this is “the nature of Las Vegas.” He said the city offers more than just hotel rooms and pools, even during this pandemic.
Although some people feel that hotel prices may increase this fall, it may not happen soon. This is because room rates usually increase when demand is high.
Online Gambling has Become More Valuable
While most states have reopened casinos because of the economic impact that resulted from the shutdown, some are considering closing them down again. Those with regulated online gambling platforms have started relying more on the industry. More states have begun legalizing and taxing online casino and sports gambling.
Hopefully, the land-based casino industry will recover and room rates in Sin City will drop to attract more visitors. Meanwhile, casinos will work to increase their online gambling revenue.