Is It Too Soon To Raise Hotel Rates In Las Vegas?
Why does it seem to be that the second that the economy gets even a tinge better prices start shooting up? The Las Vegas Sun delivers the sad news that MGM Mirage is already plotting to raises rates on the company's hotel rooms after seeing more bookings. Admittedly MGM Mirage which has struggled in recent months and does have the huge CityCenter project to pay for, does need the cash. Still, I have to wonder, is it too soon?
Conventions still haven't returned to Las Vegas in droves but the Sun article says that the MGM Mirage hotel occupancy rates, which dipped into the high 70s in January climbed back into the high 90s. Phil Ruffin, who bought Treasure Island from MGM Mirage will also be raising room rates because he's looking to attract the big fish customers rather than focusing on occupancy rate. The lower rates have worked their magic of getting more guests in beds but now the resorts seem to be more confident that the economic momentum is, if not completely charging upward yet, at least not fixed to slide lower.
Should hotels raise rates during the summer time in Las Vegas? The triple-digit heat often makes visits to the city only palatable for those interested in gambling in air-conditioned spaces or lounging in the shade of the pool cabanas. It seems like the fall season might be the time for a modest price increase but for hotels laboring under the strain of reduced rates for months already that may be too long to wait.