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MGMMirage Confirms Rising Room Rates

By Chuckmonster on Monday, 11th May 2009 3:29pm
  » filed under Las Vegas  comments: 2


As we had postulated a few days ago in a non-scientific survey of room rates across 13 Las Vegas properties (compared with travel search engine Kayak.com), MGM Mirage has confirmed to Las Vegas Sun reporter Liz Benston that growing demand for hotel rooms is driving a slow uptick in hotel room rates.

Brand New TI owner Phil Ruffin is also raising hotel rates. Not because of demand, but because he would rather the $50/night customer stay elsewhere - a clarion call which is great for longer term competition in the Vegas casino biz, but horrible for tourists searching for deals in the short term. At least now we know how Ruffin is going to operate TI - Tom Bodett meets Steve Wynn at a Napoleon Bonaparte fan meetup.

What is the determining factor driving demand? A general turnaround in the economic mood of travelers? The preponderance of (slowly vanishing) great deals enticing the stir crazy? The start of the summer travel season? Or have the many 'rock bottom rates if you book in advance' deals finally come home to roost?

Has Casino Inc.'s marketing plan - throw everything at the wall and see what sticks - actually broken the wall down?

If you haven't booked your plans for this year, we reiterate our prior advice : don't wait.



Comments & Discussion:

Phil Ruffin would prefer the $50 a night customer stay elsewhere. Okay. Done.

A raise or two and ten years of maturity later, however, the now-former $50 a night customer might remember where they've been treated well and want to relive the good old days at the same old place. Sure, more money in your pocket means you may spring for Bellagio or Aria when you're trying to impress a woman... But for the annual summer Boys Trip, the phrase "creature of habit" comes to mind.

If my money's not green enough for Ruffin now, it never will be.

Yesterday's Wall Street Journal reports that more than 13,000 new rooms will be added to the LV inventory by 2010. I suppose that is City Center, PHo, Cosmo and FB (if it gets finished.) In addition, the number of visitors in January and February this year fell 10% from the previous year. Can rates go up in these conditions?

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