Wyndham Hotels & Resorts: Las Vegas Tourism Emphasizes Value to Attract Budget-Conscious Travelers
- MGM Resorts is launching the "Welcome to Fabulous Las Vegas" campaign to attract budget-conscious travelers amid declining tourism.
- The campaign emphasizes affordability with promotions like $85 rooms and $5 beers to improve visitor perceptions of value.
- Industry leaders stress the importance of value-driven strategies to revitalize U.S. travel and restore confidence in tourism.
### Enhancing Visitor Value: A New Era for Las Vegas Tourism
In recent discussions at the Bank of America Gaming and Lodging Conference, MGM Resorts CEO Bill Hornbuckle emphasizes the pressing challenges faced by Las Vegas tourism, highlighting a new campaign titled "Welcome to Fabulous Las Vegas." This initiative aims to address a significant 12% year-over-year decline in visitation over the past seven months. The downturn in travelers has prompted Las Vegas to shift its focus toward providing tangible value through promotions and incentives, catering specifically to budget-conscious travelers seeking affordable options. Hornbuckle's remarks reflect a broader concern about the perception of value in a competitive travel landscape, which is essential for attracting both domestic and international visitors.
Hornbuckle points to specific offerings at MGM properties, such as $85 rooms and $5 beers at the Excalibur resort, as examples of value that could appeal to potential guests. By effectively communicating these deals, the city hopes to counteract negative perceptions and draw back visitors who may be deterred by rising costs and economic uncertainty. This strategic pivot reflects a growing recognition that today’s travelers prioritize affordability and value, particularly in a post-pandemic world where disposable income may be strained.
The challenges facing Las Vegas tourism are compounded by broader industry issues, including a significant drop in Canadian visitors to the U.S.—a 40% decrease attributed to political rhetoric and a weakening Canadian dollar. The rise in U.S. visa costs further complicates matters, potentially discouraging international tourists who traditionally contribute to the city's vibrant economy. As Hornbuckle notes, the international travel balance has shifted dramatically from a $50 billion surplus in 2016 to a $50 billion deficit today, exacerbated by a substantial reduction in government funding for travel marketing. These factors underscore the critical need for the tourism sector to adapt and innovate in order to regain lost ground.
In the face of these challenges, other industry leaders also express cautious optimism. Marriott CEO Tony Capuano recognizes the difficulties inherent in the current macroeconomic and socio-political climate but notes a slight resurgence in travel segments post-Labor Day. This suggests a potential turning point, indicating that while the road to recovery may be fraught with obstacles, there remains hope for revitalizing the travel industry. Both Hornbuckle and Capuano stress the importance of restoring confidence in U.S. travel, focusing on value-driven strategies to attract visitors once more.
As Las Vegas embarks on its "Welcome to Fabulous Las Vegas" campaign, the emphasis on affordability and value may serve as a crucial lifeline for the tourism sector, which is essential not only for the city's economy but also for the broader hospitality industry.