A rather
interesting article on consumer spending for their vacation. It appears that while Disney continues to have strong numbers for their theme parks even with the economic downtown, Vegas is now seeing softness in their numbers and revenues. This is all reflected in the shift in philosophy for Disney and Vegas in general. While Disney has been reaching out for the lower-income guests by increasing the number of value resorts and discounted packages, Vegas on the other hand has been heading the other way by upscaling their hotels, restaurants, etc. As a result, they are no longer recession-proof.
The upscaling of Las Vegas with its five-star hotels, restaurants and shops, and the down-pricing of Disney to more value-oriented park packages and hotels over the last decade has turned that concept on its head.
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While Disney's business model has been trying to capture more visitors down the income ladder, Las Vegas has done the reverse. The famed Strip's cheap hotels and all-you-can-eat buffets are mostly gone, replaced by first-class resorts, fancy restaurants with celebrity chefs, luxury retailers and high-end spas.
Zz.
1 comment:
All of these news stories about a Vegas Recession are unfortunately flawed.
Room rates have fluctuated heavily here since the dawn of tourism in Las Vegas. It is only the past three years they spiked high and stayed for some time. This dip wouldn't even be noted 10 years ago.
Hotel occupancy is 95%. Any other city would love to have that. Orlando has about 60% occupancy.
I wrote an extended blog post about this entire topic at
http://blog.360.yahoo.com:80/blog-ma9.tkEweKVnjAyaIq0lqYH9POKObA--?cq=1&p=29
Nothing against Disney. Love the company and I personally tell families that they are much better off visiting Orlando than Las Vegas!
Ted Newkirk
Managing Editor
Access Vegas
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