New Years Eve problems for Casinos
4th December, 2008
The strip casinos of America have managed to keep occupancy high during the current economic downturn, with extraordinary deals and extreme discount, proving that customers have no problems opening their purses for bargains even in these times.
However the question is will these promotions prompt demand for the biggest time of year for the casinos? New Years Eve is traditionally the time of year when casinos ‘lure spendthrift partygoers with more expensive rooms, food and entertainment’ and make up for business in the latter quarter.
While usually resorts are sold out weeks in advance of the day at prices in excess of $500 per room, this year it seem tourists have a wider selection with rates being at least 20% lower than typical.
Alan Feldman spokesman for MGM Mirage said he was unable to quantify New Year’s Eve business because posted room rates are inflated to reflect anticipated demand for a relatively small number of available rooms. “What remains to be seen is what response we’ll get from these customers.”
However Gary Thompson a spokesman from Harrah’s Entertainment believes that a lot more last minute reservations will be made, “People are waiting to see what’s happening with the economy.”
But still industry insiders say that customers should not expect for rates to drop much lower than they already are as there is always a premium for the day.
By Rommon
