You may have heard by now that the Oakland Raiders received permission from the NFL to relocate to Las Vegas. The football team won’t become the Las Vegas Raiders until construction a new stadium is completed. The stadium isn’t expected to open until 2020. Yay?
Las Vegas is stoked to become a major league city. The Raiders will not only change how Las Vegas feels about itself but how others feel about the city. The team will play at least eight home games per season in Las Vegas. Additionally, the new stadium is expected to draw 50-100 events per year.
Arena And Stadium Will Bring More Major Events Than Ever To Las Vegas
Many of these events like dirt bike racing and monster trucks will move from Boyd Stadium and won’t be considered major events. Even though people go to those events, they’re nothing like when Beyonce comes to town.
However, even smaller events near the Vegas Strip will have an effect on the Las Vegas experience. Hotel room prices will fluctuate more than ever. I spent most of my life in New York and New Jersey and could see hotel room prices fluctuate as events were near the various stadiums, arenas, and theaters. This new 65,000 seat football stadium, T-Mobile Arena and all of the increased convention space in Las Vegas will have a similar effect in Las Vegas.
Hotel room prices are always higher when there’s a big event in Las Vegas and this won’t be any different. In 2020 and beyond we should see more major events than ever in Las Vegas and especially on the Vegas Strip. Heck, we’ll see more big events starting later this year when the Vegas Golden Knights begin play. Every home game against a team from major cities will be an event that people plan vacations around.
Look for the other arenas and venues to take advantage of the eight Raiders home games and 41 Vegas Golden Knights hockey games. The other venues will be stacked with major talent beyond just the games. This is how to best maximize hotel room rates. We’re already seeing it on a smaller scale. Busy weekends in Las Vegas will be explosive by today’s standards.
Hotel Prices And Fees In Las Vegas May Explode
Hotel room prices won’t only increase on the Vegas Strip, but all around town. When prices are too expensive in the high demand hotels near the action many visitors will look elsewhere. Luxury hotel rooms during major events like Super Bowl weekend and the first weekend of March Madness can reach near the $1,000 mark. Lower end casino-hotel rooms may be double or triple their normal rate. Hotel rooms at the low-end Circus-Circus were near $300 the night of the Floyd Mayweather fight against Manny Pacquiao. Off strip hotel that might normally charge $100 for a room might be able to charge $150 for that room.
If resort fees are still around in 2020 we may see a sliding scale. For (extreme) example it wouldn’t be surprising to keep resort fees at $45 per night during weekdays and slide all the way to $100 per night during major event weekends. During normal busy weekends, the resort fee might be somewhere in the middle. We may see this sooner than later as regular resort fees can’t go much higher.
Since more people will be visiting Las Vegas we could see more hotel operators begin plans similar to MGM Resorts Profit Growth Plan (PGP). That’s the plan that seeks to maximize revenue while minimizing expenses. You may know this today as parking fees and drink monitoring. If there’s a fee that can be charged it will be charged by 2020. If there’s a perk that can be cut, it will be cut.
All of the price increases could lead to another construction boom. If Resorts World wants to cash in on the great stadium effect they might want to speed up construction. They could be the shiny new casino-resort in Las Vegas that opens just in time for the kickoff of the 2020 NFL season.
The Las Vegas Raiders and new stadium isn’t the end of days and we should continue to see record visitation to Las Vegas. Not that they need it, but this new stadium gives an excuse to casino operators to tighten up their business.
Marc Meltzer covers Las Vegas, gaming and men’s lifestyle for various outlets. Check out his blog at Edge Vegas.
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