Las Vegas may still dazzle, but its sparkle is coming at a steeper price

Yahoo

a day ago

Las Vegas — The "Welcome to Fabulous Las Vegas" sign is usually the first stop for millions of tourists. But the line to snap a photo is noticeably shorter this spring as inflation, which has brought on higher prices for visitors, has hit "Sin City" hard.
"We were here last year, almost exactly the same time," John Fischer, who is visiting from the United Kingdom, told CBS News. "And it was probably 20% more [expensive] this year."
U.K. tourist Stuart Woodfall said he was surprised to pay $9 for a coffee.
"In the U.K., we pay 4 pounds, 5 pounds for a coffee? So yeah, crazy," Woodfall said.
Those higher prices haven't stopped convention traffic, but casual trips are down. The Las Vegas Convention and Visitors Authority said 3.39 million people visited in March, down 7.8% from the same time last year. April saw a 5.1% drop in visitors from April 2024.
Hotel occupancy also slipped, as the average nightly rate on the Las Vegas Strip reached $203 in April, the LVCVA said, up from $194 at the same time last year. The hotel occupancy rate rate in April was 84.5%, down slightly from 85.5% in April of 2024.
"I think what's driving that largely now is just a drop in consumer confidence," Steve Hill, CEO and president of the LVCVA, told CBS News.
Hill says big resorts can absorb a few empty rooms if the price is right.
"The philosophy in Las Vegas prior to the pandemic was, at any cost, fill a room," Hill said. "Now, that has moderated somewhat. And so there is a balance point that they have found that is actually a little bit below the occupancy that we saw at a peak, which was about 88% in 2019. They're comfortable in that 85% range at a little higher price."
Another sore spot is that Las Vegas is seeing fewer international visitors, Hill explains. They are the ones who generally tend to stay longer and spend more.
"It's an investment in a trip, and we're typically a bucket list," Hill said. "They want to come here, spend more days, really enjoy the experiences that are here. And so when we lose them, we're losing a very valuable customer."
Tourists who do roll the dice in Vegas are currently dealing with heavy vehicle traffic. Months of construction and road closures for special events can turn a 10-minute ride into a crawl on the Strip.
"We've had so many customers say, 'We're never coming back to this city, you can't get anywhere,'" said Will Tryon, co-owner of Adventure Photo Tours, which he operates with his wife Donna Tryon. Their company does tours in the surrounding region, including the Grand Canyon, Area 51, Zion National Park and Death Valley.
The couple said higher fuel and insurance costs leave little room to cut prices. Some tours priced at $75 before the COVID-19 pandemic are now $109.
"The economy, the money, they don't have the money to spend," Donna told CBS News. "And the fact is that Las Vegas is no longer a bargain vacation."
Even so, plenty of visitors are still shelling out for hot tickets like Dead & Company's residency at the Sphere this spring, and Beyoncé's Cowboy Carter Tour, which is coming to Allegiant Stadium in July.
"It's like, you can go for the fancy experience, but then you can find a place that's a pretty good price," said Marc Kutzin, who is visiting from New York.
The summer calendar is full of concerts, festivals and sporting events, and Hill believes the city will be resilient.
"Las Vegas is gonna respond to this," Hill said. "We are going to have a great summer."
California track and field final begins with new rules for transgender athletes
Reporter's Notebook: Words of wisdom from college graduation speeches
How a toddler's brave walk into the darkness to get help inspired his family