With 130,000 available hotel rooms (148,978 if you drop in New York County and Lacklin), you might think there will be deals. You are most likely mistaken! Finding a bargain in a “city” with major resort properties close to capacity becomes difficult. Why? Because the best resort properties are controlled by a select group of companies that have no incentive to retire.
Vegas & # 39; Supply and Demand Law
For a moment, consider the simple law of supply and demand. When supply is high and demand is low, prices fall. Vegas is a booming city with high demand and low supply. How could it be with 130,000 rooms? The answer is simple: 30 million visitors a year and growing! In fact, the growth rate is so phenomenal that Mega resorts like Mandalay Bay (43 stories for a $ 375 million Spa Tower with 1,120 rooms completed in December 2004) and Venice (currently expanding) and the recently completed $ 2.4 billion Wynn Las Vegas (opened April 2005) adds thousands of rooms to the movie "Heart of the Strip." Growth is so phenomenal that even public financiers like Donald Trump are starting to take off. Room demand exceeds supply, so prices are rising!
According to an interview published July 30, 2004 in USA Today, Trump plans to include a 64-story hotel-condo tower that will be built on the Frontier Hotel property across the Wynn Las Vegas resort and next to fashion. Show Mall.
Construction is scheduled to begin sometime in 2005. The $ 300 million project will include 1,000 hotel rooms and 50 luxury living units, designed by Trump International Hotel and Tower in New York. There will be no casino property.
Only 10% of Las Vegas hotels are booked online
The number of articles I have researched this year, published in various business magazines, and at real hotel booking prices by hotel industry analysts for hotels offering online services to their visitors, is about 10% nationwide. I believe this is also an accurate representation of Las Vegas. (Our company manages several websites that offer hotel reservations, and these numbers correspond to our own numbers).
Further proof: "Only about 10 percent of our rooms are reserved at Hyatt.COM," said Gary Gottling, director of sales and marketing for Hyatt Regency Tampa.
This means that 90% of you use the Internet to gather information, but don't actually book your reservation online! Traditional travel agents and phone calls are still the preferred method of booking. The Internet is used as a source of information gathering, and a little more. The big players know it and use it to their advantage. Again, there is no incentive to offer lower rates if your customers do not use them. I will briefly address the issue of room taxation, saying that most municipalities hate the internet because premises that have been booked online outside the public interest are beginning to use the tax base available. Expect local government officials to act sooner rather than later on this issue.
So where does your money go when you book online?
If you search on Vegas.com you will find that they are owned by Greenspun Media Group (Henderson, NV), a daily newspaper of the Las Vegas Sun, and owns Vegas Magazine, Showbiz Weekly, Business, Las Vegas Weekly, VegasGolfer, Las Vegas Life and the Ralston Report. Greenspun Media is part of Greenspun, which also owns the local Channel 25 UPN. Greenstone is a partner of ONE of Las Vegas, the cable news channel of all news. Nevada, a real estate division of the Greenstone Corporation, is one of the most respected commercial and residential developers in the Las Vegas Valley. Their annual advertising budget exceeds 7 figures! Someone has to pay a price for all this advertising.
You could try the popular site LasVegas.com, which has an interesting and standing history. The site's domain was licensed in 2002 by Mandalay Resort Group and Parkplace Entertainment from the Littlerock Arkansas Stephens Media Group (Las Vegas Review Journal, Hawaii.com). Follow it now – 2004 Park Place became Caesars Entertainment, which was acquired by Harrah Entertainment. The deal came just one month after MGM / Mirage agreed to acquire Mandalay Resort Group. Need a room on the strip? Hmmm – I think the pricing will be pretty consistent! And to think that LasVegas.com may have belonged to you already in 1997!
IAC (InterActiveCorp), managed by Mega Financier Barry Diller, is managed by these online travel booking agencies
Expedia Vegas packages
Note (s): Expedia is No. 1 in online travel reservations for third-party booking agencies operating online. But their piece of the overall "booking pie" is still very small. Diller also oversaw the recent acquisition of Ask Jeeves for only $ 1.85 billion. Don't expect the prices of these rooms to drop any time soon.
Saber Holdings Corp owns:
Travelocity – No. 3 travel reservations
Note: Saber was the "big player" in the travel agent industry as most travel agent computers were tied to their reservation systems. Travelocity is third behind Expedia and Orbitz (now owned by Cedant Corp.)
Cedant Crop is the world's leading hotel in Franchiser with over 6,400 locations and owns or franchises:
Orbitz – No. 2 tour visitors
The HotelClub.com website
FYI – Cadant also owns Avis & Budget Rent A Car, Fairfield Resorts, Cheap Tickets.com, and Century 21 and Coldwell Banker Real Estate franchises.
So where does that leave you? I recommend reading the tips below.
Quick Budget Tips for Visitors to Vegas?
You probably think I'll suggest visiting the off-season. Don't do it! August temperatures often exceed 110 degrees – and this is the temperature of the air, not the heat that emits concrete and asphalt. No, I suggest you do something much simpler – stay tuned! Car hire is cheap when you compare them to the exorbitant prices at top "On Strip" Mega resorts. Try a hotel in Henderson or Summerlin. I would recommend smaller resorts like SunCoast or The Orleans.
Purchase a rental car and park behind Excalibur, New York, New York, or at the Fashion Show Mall (it's covered and very safe). Click on Internet ads and see what's available. Although 90% of the rooms are reserved, the hotels that are not fully booked are actually advertised! Click on these ads! I once stayed at Fiesta Henderson for $ 29.95 a night for 3 consecutive nights and I had a suite with 2 queen rooms! I found this deal in an internet advertisement! In fact, when I called the hotel to try to get an even better deal, they told me I needed to book online! Try corporate housing as it is usually full on weekdays but is available on weekends when business travelers return home. Visit the sites of the hotels you are staying at and sign up for their email offers to receive deals sent directly to you before your trip (use a free address like Hotmail for this purpose). Sign in to the table when signing in for additional benefits or offers. It's like asking for an airplane window seat if you didn't ask for it and you didn't get it. And my final tip is pre-fashion – get the most comfortable hiking shoes and buy bottled water at your local grocery store before signing up. Enjoy!