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Resorts on Strip dealing

Projected room rates down for weekend

With gasoline prices on the rise and the U.S. dollar declining internationally, Strip hotels are slashing prices to lure budget-minded customers.

Leading into the Fourth of July weekend, properties from the high-end Wynn Las Vegas to the financially precarious Tropicana 21/2 miles south are tinkering with room rates.


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  • "We monitor it day-by-day," said Planet Hollywood Resort co-owner Robert Earl, whose property has increased rates. "There are some incredible prices that have come out in the market, and they have shocked us because some of them go through the Saturday."

    Average daily room rates along the Strip are projected to be down 18 percent for the Fourth of July holiday weekend, according to a weekly report by gaming analysts at the financial firm JP Morgan. Average daily room rates are projected to drop 13 percent along the Strip for the week beginning June 29 and ending July 5, according to the report.

    The report compares weeks in the year, not actual dates. So decreases are compared to the weekend of July 6-7, 2007, or the week of July 1-7.

    Companies cut room rates in the hope that customers will not only fill the rooms, but spend the extra money in the property's restaurants, shows or on the casino floor.

    "They need to cut prices to fill rooms," said Brian Gordon, an economic analyst with Applied Analysis.

    Room rates in along the Strip have dropped on average for 13 consecutive weeks, according to JP Morgan.

    They are also projected to drop on average of 13 percent for the week of July 6-12 and 18 percent July 13-19.

    "One of the things properties are able to do is provide a more affordable room rate for their guests," said Bryan Allison, vice president of marketing for the Las Vegas vacation Web site Vegas.com. "We're in a great situation here."

    However, Allison said that travelers might go to only one show instead of two or maybe skip dessert no matter how good of a deal they get on the room.

    Many of the travelers the hotels are trying to lure back to the Strip might be customers who were lost when rooms hit the $300 to $400 per night range.

    "A lot of the price-sensitive consumers have been staying away," said Charlyn Keating Chisholm, a travel writer covering the hotel and resort industry for About.com. "The companies look at how they can pull people in and that will be the first reaction -- drop the room rates and (hope they) spend money on things like the restaurant."

    While the majority of Strip properties are cutting prices, rates at Planet Hollywood Resort are increasing 18 percent on the strength of newly remodeled rooms and the hotel's rebranding from the Aladdin.

    Earl said managers decided to give away "one or two goodies" such as meal tickets or show tickets with the room price rather than cut the room rates.

    However, he admits it is a challenge to market higher room prices in the slowing economy.

    "There are all sorts of prices out there at the moment and in the summer, everyone is very price- conscious," Earl said.

    The property also has a lot of advance bookings from international visitors because of the weak dollar.

    "Particularly with the Brits, as a destination becomes available the first few years, it becomes a top destination," Earl said.

    Allison agreed.

    "The good news for us as a city is that international travelers are finding this is a bargain. So you're seeing international travelers coming in, staying a little longer, maybe they'll spend a little more money.

    "Again, it's because of the strength of the euro and the pound."

    Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

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    David Morgan wrote on June 25, 2008 11:46 PM: Well...so much for the largess of the hotel-motel room tax offer for schools. When tourists come to town we have school days. When they don't, we don't.


    Byrne wrote on June 25, 2008 07:10 PM: The Venetian decided it would be a good idea to trash the pay tables on their entire video poker inventory. Now that’s how you entice new guests and long time patrons back to your hotel in a tight market “Give Them Less & They Will Come”. Sheldon, you might want to reevaluate your casino management team - I think they need to go back to Marketing 101. Byrne - Tampa Bay Florida


    Herb wrote on June 25, 2008 03:00 PM: I'm just saying there was value for the tourist in the mob era and now there isn't. That doesn't mean I would excuse mob members who murdered anyone.


    Noel wrote on June 25, 2008 02:59 PM: Marc hit the nail on the head.

    seriously how many of you have stayed in a standard room at the venetian for example; the bathrooms are bigger than rooms than large rooms at the sands were so expecting them to cost $30 a night is stupid

    go to london, paris or new york and look for a 1000ft suite for about $300 a night. if you stay and eat at a five star resort expect to pay five star prices otherwise stay at the riviera or tropicana


    Herb's pet dog wrote on June 25, 2008 02:33 PM: Herb cracks me up. He's constantly posting comments calling for the execution and torture of murderers. But, here he is now praising the mob. What a clown.


    Herb wrote on June 25, 2008 11:21 AM: The only time I go to the strip is when I have friends or relatives here from out of town. Over the past few years I have been SHOCKED at how expensive everything is, hotel rooms, food prices, everything. I can't help but think if things were that expensive from the start Las Vegas never would have turned into the great tourist destination it became. The idea from the start was even if you lose at gambling (and as others have stated the odds are worse now than before) everything else will be a value. Somehow Las Vegas totally forgot about our roots and what made this town famous.

    When the mob ran this town they knew how to take care of people, both employees and guests. The corporations are GREEDY. Because they have made everything so super expensive they made themselves vulnerable to recession. They deserve to suffer. Slightly lowering prices won't make a dent either. This town is in serious trouble, it didn't have to be this way.


    Fast_Eddie wrote on June 25, 2008 11:18 AM: The word is out.

    6/5 Black Jack payouts, tight machines, less booze, no comps, rooms overpriced, all of which are necessary to pay for the "theme park", along the strip.

    The real gamblers are going elsewhere because they took the strip from them. The families with kids don't find it enticing (too much sleaze).

    The Flamingo has half naked go go girls dancing at one entrance to appeal to the younger crowd and Donnie and Marie at the other end to appeal to the 50 plus crowd. They don't have a clue who they are trying to appeal to.

    What a mess! You can't even see the mountains anymore because its over built. Apparently, there is no zoning.

    You got more problems than room rates!


    Norvel wrote on June 25, 2008 11:03 AM: Thats good, keep counting on the Brits and the foreigners to keep you afloat...

    The "Strip" is no longer local friendly.

    The problem is that corporate went after that big steak in the sky, not being content with mothers home cooking. They will always be hungry because they will never find enough food to satisfy that monster they have created.

    Its just worse now... They better get back to meatloaf and potatoes.


    Marc wrote on June 25, 2008 10:35 AM: It seems like some of you want Vegas to go back to the way it was in the 80's with $1.99 steak deals and buffets...go to any other big city and you're going to drop a lot of money on a hotel...lower the room rates to historical lows and watch the hotel tax money decrease in half...STATE INCOME TAX ANYONE?


    Common Sense wrote on June 25, 2008 10:18 AM: "have some common sense by researching before you make a blank statement."

    Ah, yes ... the old "mischaracterize the subject, then argue against the micharacterization" tactic. I know it well.

    Let's debunk your socialist logic point by point:

    "But COLA is only $140 million of our $1.2 billion short fall."

    The idea that "we" shouldn't worry about 11% of the deficit because it's not the ENTIRE amount is simply fraudulent. That's the same reasoning that drug users and compulsive gamblers use to justify continuing their addictions.


    "we still need to do more."

    No, "we" don't. You don't speak for me or anyone else. And I have no "need" to "do more," which is newspeak for "pay more."

    But YOU are free to pay more. Just drop by the nearest state office and hand them a few thousand of YOUR dollars. After all, they "need" it more than you ... right?


    "government jobs in Nevada have above average salaries compared to the private sector. The teachers on the other hand might be below the national average in comparision to the cost of living."

    "Might be" below average? Didn't you just tell ME to do some research before making statements?

    And don't think you can get away with using a STATE comparison in one part of a sentence, then slipping in a NATIONAL comparison at the end.

    Yes, government workers in NV make less than those in other states. NV also generates less tax revenue than other states. NV has a lower population than other states. Get it?

    If Nevada state employees think they're underpaid, then they're free to move to states that pay more.

    They'll be better off, plus they'll get to punish us greedy taxpayers by depriving us of their "services."

    Then we'll really be sorry.


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