Posted on: October 18, 2022, 05:11h.
Last update on: October 18, 2022, 05:39h.
Las Vegas hotel revenue from business and leisure travelers this year will exceed pre-coronavirus levels, making America’s casino mecca one of the few national cities to tick both boxes.
In the travel and leisure industry, airlines, hoteliers and other subgroups separate business and leisure travelers into two distinct groups. This differentiation is especially important in Las Vegas. Since the reopening of casinos in 2020 following the outbreak of COVID-19, weekend (leisure) occupancy rates have been high. But Sunday to Wednesday (convention travelers) was bumpy.
According to the American Hotel & Lodging Association (AHLA), U.S. hotel leisure travel revenue is expected to end 2022 14% above 2019 levels, while business travel in hotels is expected to be less than 1% of 2019 levels.
When it comes to the top 50 national markets, 80% will see leisure travel revenues surpass 2019 levels this year. But only 40% can say the same for business travel sales.
Las Vegas Hotel Biz Positions Favorably
As the casino center of the United States and home to a wealth of entertainment options, sporting events and high-end restaurants, Las Vegas has some advantages that other cities do not have in terms of promoting gambling. growth of upscale hotels for business and occasional travellers.
As such, Sin City is one of 18 metropolitan areas that will experience growth in hotel revenues from business travelers and tourists this year. Reno is also on this list.
New data from the Reno-Sparks Convention and Visitors Authority (RSCVA) indicates that the area, which includes Reno, Sparks and Incline Village, is enjoying higher fares. Yet there is still work to be done to return to pre-pandemic occupancy levels.
Data from the Reno-Tahoe Airport Authority confirms that year-to-date arrivals at Reno-Tahoe International Airport are easily eclipsing pre-pandemic levels. This year, passenger traffic at the airport in the first quarter was 74.2% higher than the same period a year earlier.
Other cities in this group include Austin, Miami, Nashville and Phoenix, according to AHLA.
More positive signs for business travel to Las Vegas
It is undoubtedly helpful to operator bottom lines that weekend occupancy rates on the Strip remain high. But analysts consider the rise in conventions and meetings in the future to be critical to the fortunes of some game companies.
These include Circa (downtown), Caesars Entertainment, MGM Resorts International, and Wynn Resorts, all of which have new or little-used convention space. Fortunately, there is evidence to suggest that next year could bring a positive turning point when it comes to increased commercial traffic in Las Vegas.
At 30 Deutsche Banke Annual Leveraged Finance Conference last month, Jonathan Halkyard, CFO of MGM said enthusiasm for meetings and conventions is returning to normal and bookings for them are strong through the second quarter of 2023.