Resort Room Price Fluctuation?

Question

Hi. This is more of a curiosity question rather than actually looking for pertinent info.

We are fairly inexperienced travelers and only been to Vegas once before, 2 years ago. So, we are not staying on comps or anything like that.

I tend to be a planner, and 2 years ago, I booked our resort about 6 or 7 months in advance and then monitored prices for any changes. And I remember that there was indeed quite a few, fairly significant price changes over the course of that time. i.e. We eventually booked Venetian for a cheaper price than our initial Paris booking because prices varied so much.

This time, though, same thing - we booked about 6 months in advance, but resort prices have not changed almost at all in the last 4 months. We still have about 7 weeks to go, so I don't know if they will change significantly in that time, but I'm just surprised about the lack of price fluctuations this time compared to last time.

We are going about the same time of year (February/March, so that is not a variable.

I guess that the question is: Are Vegas prices different than they used to be as far as fluctuating over time? Or is this just a fluke?

Thanks. Sorry for the dumb question.

Answer

It's not a dumb question at all! In fact, the fluctuation of hotel room prices in Las Vegas is influenced by various factors, and your experience this time may be due to a few key reasons. Here's a breakdown of what's likely going on:

1. Changes in Booking Trends and Strategies

Hotels in Las Vegas used to have more dynamic pricing, with rates changing significantly over several months leading up to your stay. However, many hotels now use more sophisticated pricing algorithms that can lead to more stable rates during certain periods. These algorithms take into account demand, booking patterns, events, and competitor pricing, so the fluctuation you saw in the past may not be as common anymore. Additionally, the rise of dynamic pricing models might mean fewer drastic shifts in rates if there's not an immediate increase in demand.

2. Seasonality and Demand

Even though you're traveling in a similar timeframe (February/March), the overall demand for rooms during this period might be lower than in previous years, or at least stable enough that rates don’t need to fluctuate as much. The Las Vegas market can vary depending on factors such as conventions, large events, or even global economic conditions. Since it's not a high-traffic period like holidays or major events, prices may have stabilized or are being kept consistent to fill rooms. In contrast, when demand spikes during holidays or busy periods, you might see higher volatility in pricing.

3. Pricing Transparency and Longer Booking Windows

Another reason you're seeing more price stability might be due to a shift toward longer-term pricing transparency. Many resorts now lock in their rates earlier in advance (up to 6-9 months ahead) to create a sense of consistency for travelers. This strategy helps hotels maintain predictable occupancy rates, especially with travelers booking well in advance. As a result, last-minute fluctuations are less noticeable, and the prices you locked in 6 months ago might be relatively stable due to pre-planned strategies.

4. Hotel Promotions and Packages

Sometimes, hotels offer packages, discounts, or promos that might not necessarily affect the base price of the room. If you're comparing the same room type, the price may stay consistent, but additional promotions (such as resort credits, discounted meals, or other perks) could make it seem like there are no changes in the rate itself. If a hotel offers fewer promotions in the lead-up to your trip, you may see fewer price changes.

5. Specific to Your Experience

It could also just be a coincidence or a fluke for your particular hotel. Hotels like Venetian and Paris, especially with their larger booking windows, may have opted for a more stable pricing strategy this time around. The experience you had last time with dramatic price fluctuations could have been due to more variable demand or certain offers running at that time.

In conclusion, while price fluctuations are still common in Las Vegas, their intensity and frequency may be less noticeable due to shifts in hotel pricing models and market demand. This doesn’t necessarily mean Vegas is changing drastically, but rather the industry's approach to pricing might be evolving. That said, it’s always a good idea to monitor rates, especially as you get closer to your stay, just in case there are any last-minute deals or adjustments.

Happy travels, and enjoy your upcoming trip!