Las Vegas Strip casinos feel dip in revenue from Airbnb growth

Posted on: April 15, 2019, 12:00 p.m.

Last update: April 16, 2019, 8:33 a.m.

Casinos on the Las Vegas Strip are estimated to have lost around $150 million in room revenue due to the Airbnb accommodation booking service.

Las Vegas Strip Casino Airbnb
Airbnb offers a multitude of properties for rent on and around the Las Vegas Strip. (Picture: Airbnb)

In a study by Telsey Group Advisory – a New York-based research firm – casino resorts missed out on $150 million due to Sin City travelers booking through the online booking service.

Over the past few years, Airbnb has seen explosive growth in Las Vegas and recent Google search trends suggest that will only continue in the short term,” Telsey analyst Brian McGill said in a recent note. the Las Vegas Review-Journal first reported the results. “This is a major issue during peak demand periods which seems to have impacted rates.”

McGill cited Super Bowl weekend and the annual CES trade show as two examples of peak times.

According to Airbnb, there are approximately 6,500 rental units in Nevada, and most of them are in the southern region of the state. A search for the first week of June for a group of four in Las Vegas revealed over 1,000 options.

Las Vegas is home to over 149,000 hotel rooms. They were 88.2% occupied last year.

Reservation Las Vegas

The Las Vegas Convention and Visitors Authority (LVCVA) released its 2018 Visitor Profile last week and revealed some startling statistics. The average rate per night for a room last year was $113.66, which is about the same as in 2017.

Sixty-two percent of all customers who managed their own reservation used the Internet to book their rooms. Twenty-one percent went directly through the casino’s website, while 41 percent used a third-party site.

Only 15% used a phone to make reservations in Las Vegas.

Ted Newkirk, the founder of Access Vegas – a website with travel information for visitors – told the RJ that Airbnb is an alternative for those unhappy with higher resort fees, the elimination of free parking, and other additional costs.

“Airbnb is a winner for the drive-in guest who’s tired of nickel and dimming. They avoid resort and parking fees, they can carpool to the strip or park in one of the parking garages free, stock up at a local store, and eat at local restaurants. The combination of these savings really adds up,” Newkirk explained.

Airbnb Extravaganzas

Among the listings for a week-long stay in Las Vegas in early June, several prime properties are available for occupancy.

A 4,000 square foot penthouse overlooking the Las Vegas Strip with two bedrooms and 2.5 bathrooms costs $1,003 per night. For the week including cleaning and service charges, the reservation will cost $8,269. The residence has an “over-the-edge” outdoor jacuzzi with views of the gambling mecca.

For those who need more space, a tropical retreat five minutes from the Strip offers over 6,000 square feet of living space, a 120-inch projection TV, a 52-foot-long pool, and five rooms that can accommodate up to 16 guests.

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