Although prolonged periods of high inflation have not greatly impacted the US gaming industry, evidence demonstrates that customers are being more selective in the money they spend on luxuries like upscale restaurants, night clubs, and poolside cabanas. Data from SevenRooms, a company that offers reservation management analytics for the hospitality and food industry, confirms this trend is not specific to Las Vegas, but is found across the US. This observation coincides with the claims of some Las Vegas gaming executives from the previous year, who noted that customers were decreasing their spending on expensive meals and indulgences like alcohol or extra pulls on slot machines.
Moreover, SevenRooms data showed that in February, no-shows at domestic hotels rose 0.3% from the previous month, while cancellations increased 1.3% to 14.2%. This indicates that travelers are comparing prices and canceling bookings at other properties if they get a better deal.
The SevenRooms research is significant for gaming industry analysts, as MGM Resorts International, Tao Group, and Wynn Resorts are some of its clients. Casino operators have indicated that there is a strong demand and hotel occupancy in the early months of 2023, with Nevada’s gross gaming revenue reaching $1 billion for 24 consecutive months in February. However, this figure does not take into account the lessened expenditures on night clubs, restaurants, and rooms.
Fortunately, Las Vegas is expected to experience a recovery in convention and meeting business in 2024 and 2025, which should cause a more perceptible resurgence. Moreover, the city has an impressive calendar of events this year, including the NCAA West Regionals and the F1 race in November. Further, Caesars Entertainment’s decision to add 34 dates of Weekends With Adele at Caesars Palace further indicates the confidence of operators in the city’s booking and spending trends.
