During the first half of this year, Las Vegas’s total visitors climbed back 1.9 percent over the same period last year. In March it started to see monthly hikes in convention attendance and average daily rate (ADR), while hotel occupancies still suffered dips, according to figures from the Las Vegas Convention and Visitors Authority (LVCVA).
It’s still a far cry from the city’s 94 percent average hotel occupancy of 2007—the highest in at least 30 years. Hotel occupancy stood at 85.3 percent last year, when the total number of visitors declined by just 3 percent from 2008, but the number of meeting attendees plummeted by 23.9 percent. ADR slid 22 percent from 2008 to $92.93.
Now that the market is rebounding, good deals remain, including discounted rates, free add-ons, attrition breaks and other concessions.
"In 2008 and 2009 meeting planners saw hotels like wounded animals," says Drew Varga, executive director of sales at the new 390-room M Resort, south of the Strip. "The value packages are still there to fill in shoulder and valley periods, but we’re starting to see marginal increases in room rates. Leads have increased and corporate groups have been spending more."
On the other hand, he notes that competition has increased for smaller corporate groups, whose sizes have been generally cut in half over the past few years.
"There is more competition for the groups of 250 room nights between the new and larger resorts," he says.
"There are definitely deals to be had—in the short term. It is still a buyer’s market, although if there is a citywide going on rates will be higher," says Gary Schirmacher, senior vice president-strategic account services for Experient, a meeting and event services company.
"If you are considering Las Vegas, and you’ve been reluctant, there is no better time than now to book short-term business," he continues. "The room product in general is sensational, as good as or better than anywhere else in the country. But hotels are getting a little tougher with contract terms for business further out, in 2013 and beyond. They are being cautious on rate quotes."
Experient, which handles more than 3,000 events a year, finds that Las Vegas fits into an encouraging nationwide pattern.
"We are seeing significant increases in our year-over-year statistics, including the number of meetings booked and the number of contracts processed," Schirmacher says. "We are busier than ever, lead times are tight, and the luxury hotel segment has been rebounding."
Trade show business also appears to be on the rebound in Las Vegas.
According to LVCVA spokesman Jeremy Handel, most major trade shows have experienced attendance increases this year.
"The corporate incentive and small meetings markets have remained slow but bookings are picking up and look strong for 2011," he says.
Trade shows reporting increases over 2009 include March’s ASD merchandise show with 45,000-plus attendees, with buyers up 15 percent; April’s National Association of Broadcasters with 88,044 attendees, up from 82,650 last year; and May’s National Hardware Show, with attendance up 20 percent.
For the first time in its 91-year history, the IAAPA Attractions Expo was held in Las Vegas last November. Its 14,700 buyers increased 17 percent over 2008 when it was in Orlando, and where it returns for the next 10 years.
LVCVA promotes that attendance increases an average of 14 percent when shows rotate to the city. Among other selling points are its 148,000 hotel rooms and its hosting of more of the largest 200 shows than its two nearest competitors combined.
Handel says LVCVA is continuing to reach out to planners with face-to-face sales calls, FAM trips, a meetings promotion website with planning tools launched last year at www.vegasmeansbusiness.com and a successful call center launched in 2008 to help boost attendance.
