Getting creative
MGM Resorts is attempting to make up for lower visitor numbers and falling casino revenue by offering discount travel packages to business professionals. The packages offer cheap rooms, an executive assistant, and even a discount on semi-private jet services.
latest attempt by the company to increase bookings after the pandemic shutdown
This new offering is called “Viva Las Office” and is the latest attempt by the company to increase bookings after the pandemic shutdown. It wants to get people to “work from home” at these properties.
MGM Resorts is the largest hotel-casino company with a presence on the Las Vegas Strip. However, this new “ultimate home-away-from-the-home office experience” will only be available for its ARIA and Bellagio properties.
The Bellagio’s standard weekday room rate is currently about $169 a night, compared to $229 last year. In the most basic Viva Las Office package, the average rate is just $100. As part of these offers, MGM has partnered with a semi-private jet company to give up to $125 off round-trips to the city.
MGM Resorts tweeted out a promotional video for the offer:
A struggling economy
Nevada’s economy relies heavily on the tourism and gaming industries. Since casinos reopened after the forced shutdown, many convention centers, meeting rooms, and hotel rooms have been empty. Companies are looking to attract visitors in any way they can. One casino even paid for 2,000 flights to get people to visit.?
MGM Resorts is looking to make a comeback after posting a $1bn second-quarter operating loss, mostly attributed to the pandemic and the subsequent fall in travel. Its effort to target business people is an attempt to fill up rooms and help boost spending at its properties.?
Visitors to Las Vegas
Nevada gaming properties were shut down from the middle of March until June 4.
While many entertainment shows remain shuttered in Las Vegas, casino gambling is still an option for visitors. Gaming revenue in the state was $566.8m for June, a drop of 45.6% year-on-year. Gaming floors are operating at reduced capacities, with extensive health and safety measures in place. Increasing visitor numbers would naturally boost gaming revenues.?
average gambling budget for a trip rising to $591.06 from $527.05
A recent Las Vegas Convention and Visitors Authority’s (LVCVA) report showed that visitors are coming to the city to specifically to gamble more than they have in quite a while. Four out of five people surveyed had gambled at some point during their visit, which is the highest gambling rate seen in recent years. Average time spent gambling also rose from 1.2 hours to 2.7 hours in 2019, with the average gambling budget for a trip rising to $591.06 from $527.05 the previous year.?