Tourism in Southern Nevada is experiencing a downturn, with locals blaming rising prices on the Las Vegas Strip. Many residents feel that the high costs are pricing them out of the market.
According to data from the Las Vegas Convention and Visitors Authority (LVCVA), the average room rate on the Strip decreased by 7% in June compared to last year, while downtown rates increased by $5 per night. However, experts say that these numbers do not tell the whole story.
Resort and gaming expert Alan Feldman explains that the room rates are constantly fluctuating due to the presence of moderately priced hotels on the Strip. “It’s like a grease pole – it’s just constantly moving around,” he says. The big resorts use data analytics and artificial intelligence to maximize revenue, often changing prices from $500 per night to $200.
Feldman notes that AI is becoming increasingly important in pricing strategies, making decisions faster and more precise. Local economist Mike PeQueen observes a shift towards luxury markets, where six-figure hotel rooms are becoming more common. “Who would have thought it possible to spend over $700 on a hotel room in Las Vegas?” he asks.
The controversy surrounding parking fees is also still remembered by locals, who were shocked when Strip hotels began charging for it. However, Californians were not as surprised, as they were used to paying similar prices in Los Angeles and Orange County.
Source: https://news3lv.com/news/local/las-vegas-tourism-slump-linked-to-rising-costs-expert-analysis-reveals