With 130,000 hotel rooms available (if you throw in 148,978 in Nye County and Laughlin) you might think there will be “deals”. It would probably be wrong! It’s becoming more and more difficult to find an “agreement” with major facilities in a city that is becoming increasingly difficult.Why? Because the properties at the top resort are controlled by a certain group of companies with no discount incentives.
Vegas Supply and Demand Act
Consider for a moment the mere law of “Supply and Demand.” When supply is high and demand is low, prices fall. Vegas is a boomtown, with high demand and low supply. How could that be with 130,000 bedrooms? The answer is simple: 30 million more visitors a year and more! In fact, the growth rate is huge for Mega Resorts like Mandalay Bay (43 stories worth $ 375 million by the Spa Tower 1,120 Suites completed in December 2004) and The Venetian (which are currently expanding) and the recently completed 2.4 million millions of Wynn Las Vegas (opened April 2005) are adding thousands of rooms to the “Heart of the Band”. So the phenomenon is that growth is also coming into action from financial states like Donald Trump. The demand for rooms is exceeding supply, so prices are rising!
According to an interview published in the U.S. on July 30, 2004, Trump’s plans include a 64-story hotel condominium tower to be built on a Frontier Hotel property next to the Wynn Las Vegas Resort and Fashion Show Mall.
To begin construction on several projects in 2005, the $ 300 million project will include 1,000 hotel rooms, and 50 luxury residential units modeled on Trump International Hotel and Tower in New York City. No casino will be owned.
Only 10% of Las Vegas hotels are booked online
In several articles I’ve researched this year, the booking rate for hotels that offer online services to visitors published in various business journals and hotel analysts is about 10%. I think this is also an accurate representation of Las Vegas. (Our company manages a number of websites that offer Hotel Booking and these numbers match ours).
More proof: “Only about 10 percent of our rooms are on Hyatt.COM,” said Gary Gotling, Tampa’s director of sales and marketing at Hyatt Regency.
This means that 90% of you are using the Internet to gather information, but you are not making your reservation online! Traditional travel agencies and phone calls are the method of booking. The Internet is being used as a source of information gathering, and little else. Great players know that and take advantage of it. Again, there is no incentive to offer the lowest rates if your customers don’t take advantage of it. I will briefly touch on the issue of fiscal issues, saying that local governments hate the internet because they make rooms with reservations outside the state’s interests available in the tax warehouse. Expect local government officials to address this issue before it is too late.
So where does the money go when you book online?
If you search Vegas.com, you are owned by Greenspun Media Group (Henderson, NV), which publishes the Las Vegas Sun Daily Newspaper, and are owned by Vegas Magazine, Showbiz Weekly, Business, Las Vegas Weekly, VegasGolfer, Las Vegas Life, and The Ralston Report . Greenspun Media is located within the Greenspun Corporation. He also owns 25 local UPNs. Greenspun is a member of ONE Las Vegas on a cable news channel for all the news. The New Greenspun Corporation’s The American Neens is one of the most popular commercial and residential developers in the Las Vegas Valley. Annual advertising budget exceeds 7 figures! Someone has to pay the price for all the advertising.
You can try the popular website LasVegas.com with an interesting history and repository. The Site Domain graduated in 2002 from Littlerock Arkansas Stephens Media Group (Las Vegas Review Journal, Hawaii.com) to Mandalay Resort Group and Parkplace Entertainment. Continue now – 2004 Park Place became Caesars Entertainment. It was bought by Harrah’s Entertainment. This agreement was reached a few months after MGM / Mirage bought the Mandalay Resort Group. Do you need a room on the bandwagon? Hmmm – I think the prices will be pretty consistent! And in 1997 he thought he could own LasVegas.com!
Mega Financier IAC (InterActiveCorp) managed by Mega Financier Barry Diller manages these online Travel Booking Agencies
· Expedia.com Holidays
· Expedia Vegas Packages
Note (s): Expedia is the # 1 online travel booking agency for third-party travelers. However, the whole piece of “reserve cake” is very small. Mr. Diller also oversaw the new purchase of “Ask Jeeves” for $ 1.85 billion. Don’t expect room prices to go down anytime soon.
Saber Holdings Corp is owned by:
Travelocity – # 3 in travel booking
Note: Saber was a “Big Player” in the Travel Agent industry, as most of the Travel Agent’s computers were connected to reservation systems. Travelocity # 3 is behind Expedia and Orbitz (now owned by Cedant Corp.)
Cedant Crop is the top Hotel Franchiser with over 6,400 locations and owns or franchises:
· Orbitz – Travel Visitors # 2
FYI – Cadant also owns Avis & Budget Rent A Car, Fairfield Resorts (timeshare resorts), Cheap Tickets.com, and Century 21 and Coldwell Banker Real Estate Franchises.
So where does this leave you? Below, I would recommend that you read these tips quickly.
Vegas Tips on Budgeting Fast?
You probably think I’d suggest visiting “out of season”. Don’t do it! August temperatures often exceed 110 degrees and that is because the air temperature is not due to radiation from concrete and asphalt. No, I suggest you do something simpler. Stay off the list! Car rentals are cheap compared to the best prices on the best “On Strip” Mega Resorts. Try a hotel in Henderson or Summerlin. I would suggest smaller resorts like SunCoast or The Orleans.
Get a rental car and park behind Excalibur, New York New York or the Fashion Show Mall (covered and very safe). Click on the internet ads and see what’s available. While 90% of rooms are fully booked, non-fully booked hotels advertise! Click on those ads! I once stayed at the Fiesta Henderson for $ 29.95 for 3 nights in a row, and I had a 2 bedroom suite! I found this deal in an internet ad! In fact, when I called the hotel they told me to get even better and book online! Try corporate housing as it is usually on weekdays, but is available on weekends. Ask at the table when guests offer additional benefits or offers. It’s like asking for a seat on the plane, if you don’t ask for that you won’t get it. And my last tip before Fashion is Shape – bring your most comfortable shoes and keep them bottled watered before entering the local store. Enjoy!