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With 130,000 available hotel rooms (148,978 if you throw in Nye County and Laughlin) you might think there would be a “Deals” to be found. You would most likely be wrong! Finding a “deal” in a city whose Major Resort properties run near capacity is becoming increasingly difficult. Why? Because the top resort properties are controlled by a select group of companies that have no incentive to discount.

Vegas’ Law of Supply and Demand

Consider for a moment the simple law of “Supply and Demand”. When the supply is high and the demand is low the prices drop. Vegas is a boomtown, the demand is high and the supply is low. How could that be with 130,000 rooms? The answer is simple: 30 million annual visitors and growing! In fact the growth rate is so phenomenal that Mega Resorts like Mandalay Bay (43 story $375 million Spa Tower featuring 1,120 Suites completed in December 2004) and The Venetian (currently expanding) and the recently completed $2.4 Billion Wynn Las Vegas (Opened April 2005) are adding thousands of rooms to the “Heart of the Strip”. So phenomenal is the growth that even out of State Financiers like Donald Trump are getting in on the action. The Demand for Rooms is exceeding the supply so the prices are rising!

According to an interview published July 30, 2004 in USA Today Trump’s plans include a 64-story hotel-condominium tower to be built on a portion of the Frontier Hotel property across from the Wynn Las Vegas Resort and next to the Fashion Show Mall.

Scheduled to begin construction sometime in 2005 the $300 million project will feature 1,000 hotel rooms, and 50 luxury residential units modeled after the Trump International Hotel and Tower in New York. There will be no Casino on the property.

Only 10% of Las Vegas Hotels are Booked Online

In several articles I’ve researched this year published in various Business Journals and by Hotel Industry analysts the actual booking rate for Hotels offering online services to their visitors is approximately 10% Nationwide. This I believe to be an accurate representation of Las Vegas as well. (Our company runs several websites offering Hotel Booking and these numbers are in line with our own).

Further Proof: “Only about 10 percent of our rooms are booked at Hyatt.COM,” said Gary Gotling, director of sales and marketing for Hyatt Regency Tampa.

This means 90% of you are using the Internet to gather information, but are not actually making your reservation Online! Traditional Travel Agents and telephone calls are still the preferred method of booking. The Internet is being used as an information gathering source, and little more. The big Players know this and use it to their advantage. Again there is no incentive to offer lower rates if your customers don’t take advantage of them. I’ll touch briefly on the issue of Room Taxation by saying that most local Governments hate the internet because rooms booked online by out of State interests are cutting into their available tax pool. Expect local Government officials to act sooner than later on this issue.

So where does your money go when you book online?

If you search Vegas.com you’ll find they are owned by Greenspun Media Group (Henderson, NV) which publishes the Las Vegas Sun Daily Newspaper, and owns Vegas Magazine, Showbiz Weekly, In Business, Las Vegas Weekly, VegasGolfer, Las Vegas Life, and The Ralston Report. Greenspun Media is part of the Greenspun Corporation, which also owns local Channel 25 UPN. Greenspun is a partner in Las Vegas ONE, an all-news cable channel. American Nevada, the real estate division of The Greenspun Corporation, is among the most recognized commercial and residential developers in the Las Vegas valley. Their annual advertising budget exceeds 7 figures! Somebody has to pay the price for all that advertising.

You might try the popular website LasVegas.com which has an interesting and storied history. The site Domain was licensed in 2002 from the Stephens Media Group of Littlerock Arkansas (Las Vegas Review Journal, Hawaii.com) to the Mandalay Resort Group and Parkplace Entertainment. Follow along now – 2004 Park Place became Caesars Entertainment, which in turn was purchased by Harrah’s Entertainment. This deal came just one month after MGM/Mirage agreed to purchase the Mandalay Resort Group. Need a room on the strip? Hmmm – I think the pricing is going to be pretty consistent! And to think that you could have owned http://www.hotelclub.net/enter.asp?id=67294&lc=&cr=&ru=Common%2FMaps%2FMapSearch%2Easp%3Fcid%3D5

 late as 1997!

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