- Las Vegas room rates dropped for the Thanksgiving weekend, going against the pre-pandemic norm in the days leading to the holiday.
- Only six out of 35 properties in the city did not reduce their room rates between November 16 and Monday.
- Experts feel several factors, including travel advisories from states and CDC concerning Nevada could have led to the price drops.
- The price drops come at a time when Nevada has imposed further restrictions on the gaming industry.
Las Vegas saw room rates drop for Thanksgiving weekend in the days leading to the holiday.
Travel advisories from states and the Centers for Disease Control and Prevention could have contributed to the fall in price, according to experts.
“It’s all pointing in the same direction — unless you must travel, please don’t. And Las Vegas is not in the ‘must travel’ category,” said distinguished fellow at UNLV’s International Gaming Institute Alan Feldman.
Staying at Red Rock Resort cost $250 for Friday, according to last week’s listing on Hotels.com. In the same period, rates at The Strat fell 55% from $64 to $29.
Only six out of the 35 tracked properties, including those on the Strip, downtown, and in other parts of Las Vegas Valley, did not cut their room rates between November 16 and Monday, with drops of 3.6% to 54.7%.
Room rates listed for Saturday also dropped.
On Monday, Hotels.com listed the price of staying at Paris Las Vegas this Saturday at $55, about half the cost of a stay last weekend. Excalibur Hotel and Casino reduced prices by nearly 62% over the week, from $65 last Saturday to $25 this weekend.
Representatives for the six largest casino operators either declined to comment on the room rates or did not respond.
Under normal circumstances, room rates are highly volatile. Feldman says several factors affect the rates, including demand and availability. He believes the most recent travel advisory from CDC could have influenced the price drops, at least in part.
On Thursday, the agency recommended avoidance of travel over the holiday weekend.
Black Friday sales and the listing of Nevada on some states’ advisory lists, among other factors, could also have played a role in the price cuts.
“Under these circumstances today, it’s all the more understandable that you’d see prices go down because you’ve seen travel restrictions and requests for limited travel, so fewer people are traveling,” Feldman said.
He also added that the room rate drop leading up to Thanksgiving weekend is contrary to the pre-pandemic norm.
“As you get closer to any sort of time frame — a weekend, a holiday, a convention — the number of available rooms gets smaller and smaller, and whatever demand is left usually starts to drive prices higher,” he said.
Nevada’s new capacity restrictions that the state announced on Sunday could also affect demand and room rates. From Tuesday, gaming properties, restaurants, and bars within Silver State will operate at 25% occupancy, down from the previous 50% cap.
Director of government affairs for Global Markets Advisors Brendan Bussmann feels the changes could pare down demand and room rates.