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Room Rate Study Fall 2009 - With Charts!

By Chuckmonster on Tuesday, 15th September 2009 2:37pm
  » filed under Las Vegas  comments: 3


It's been a while since we fired up the spreadsheets and crunched the room rate numbers. We're back with the same four joints - Planet Hollywood, Mirage, Flamingo and Bellagio - with weekend (Th, F, Sat) rates from September 14th-November 8th.

Without a doubt, the average weekend rate (AWR) hotel rate has risen significantly since we last took a look, as evidenced by the graph below:

Roomratestudy 092009 Awr

To the left is the data from the Summer 2009 study, coupled with the data from the Fall 2009 study on the right. Again, we see Planet Hollywood and Mirage seemingly pitting themselves against each other for the hearts and minds of the 3.5 star customer. Another notable trend is the marked increase in price increase from both MGM Mirage properties - Bellagio and Mirage. Bellagio has upped their rates by nearly 100% from the mid $200s to almost $500/night. Mirage's rate increase is less dramatic, but these numbers DO NOT include their recent inclusion of $15/night resort fee.

One has to wonder if MGM Mirage has insight into hotel demand that other operators don't, or are attempting to "manufacture demand" by jacking up their rates. Either way, my gut says that MGM Mirage's price increases are a tad steep, particularly when coupled with the knowledge that The Mirage and Bellagio hotel offerings aren't nearly as fantastically awesome as their owners - and uninformed Vegas tourists with money to burn - think they are.

Roomratestudy 092009 3mo

For those with flexible time frames who may be looking to book a Vegas trip this fall, Halloween weekend (10/29-11/1) is trending towards the best rates with Bellagio dipping from its incredibly overpriced flirtation with $400+ AWR to a barely justifiable $279 AWR.

By far, the best value proposition for Halloween is a Go Room at the Flamingo, which can be had for just over $100 AWR. I'll guarantee that Halloween at the Flaming-o and/or Planet Hollywood will be a helluva lot more "fun" than stuffy old Bellagio.

Roomratestudy 092009 Awrflux

This graph shows the AWR Fluctuation Percentage of each property from week to week, paired with an Average Fluctuation Percentage of all the properties. The steeper the curves, the larger a price change from week to week. What you want to see here is an individual property curve that is steeper and deeper than the average curve, below the center line. This shows that a hotel has dropped its hotel rates by a greater percentage than the rest of the market.

Dollars to donuts... room rates are going up up up. If you were one of those smart enough follow our suggestions to book those killer deals for dates way way way in the future, look at these hotel rates and give yourself a pat on the back. You paid $90/nt for four or five star hotels, which are now booking at upwards of 5x that.

If you didn't... well.... ooops?



Comments & Discussion:

mmmmmmmmm donuts.....

It would be interesting to see those same charts for the November to January time frame when City Center comes online and there is a flood of new room inventory on the market.

It would also be interesting to see the other operators (Wynn, LV Sands, Rivera, & Sahara) included in the mix.

Does anyone pay regular room rates? This is good for comparison's sake though. Do you have the numbers to compare 08 numbers to 09 for the same period?

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