Low Room Rates in Las Vegas Responsible for Labor Day Violence: Analyst

Posted on: September 9, 2020, 03:05h.

Last updated on: September 10, 2020, 07:41h.

Philip Conneller Read More

Expertise: Gaming Business, Regulation, Tribal Gaming.

A spike in violence on the Las Vegas Strip over Labor Day weekend is a direct result of rock-bottom room rates. That’s according to Greg Mullen, vice president of CDC Consulting, who told the Las Vegas Review-Journal this week he believes the drop in prices during the coronavirus pandemic is attracting the wrong sort of person.

Las Vegas Room Rates And Violence — The Labor Day weekend crowds brought trouble to the streets of Las Vegas this year. (Image: Ellen Schmidt/*LVRJ*)

Occupancy rates have plummeted because of the pandemic, which means operators are offering low rates, or even free rooms, plus travel incentives to the mass market, rather than just high rollers.

Cheap retail rates for the hotel rooms (and) free rooms are going to the players that have never had free rooms in Las Vegas,” Mullen said. “They’re going deeper in their database to get players who aren’t as lucrative because it’s better just to get a body in there.”

The result? The destruction of rooms is at an all-time high at some high-end properties, according to Mullen, and meanwhile, videos with titles like “Fight in ENCORE HOTEL LAS VEGAS LABOR WEEKEND 2020” are getting 40,000-plus views on YouTube.

Wynn to Raise Rates

A Wynn Resorts spokesperson confirmed to LVRJ that a large brawl had taken place at Encore over the weekend, adding that the company planned to buck the trend by bumping up room rates and hiring more security.

Las Vegas Metro Police told a press conference on Tuesday that the downtown area command had arrested 28 people on Friday alone, and issued 27 citations.

People coming here to have fun and take part in the festivities … we welcome you,” said Capt. Patricia Spencer, head of the downtown area command. “For those of you coming here to prey on the tourists or residents of this community, it will not be tolerated.”

Mullen says that operators will need to find a skillful balance between prices that are high enough to keep out undesirables, and low enough to maintain a healthy rate of occupancy — at least until the virus is suppressed to a point where conventions and concerts can return to the Strip.

‘Scared to Go Outside’

But Mullen is concerned that the current climate could damage the reputation of Las Vegas for a long time to come.

“Several of our higher-end profile clients say their high-end guests are done coming until this is under control,” he said. “They’re scared to walk outside their rooms, and don’t feel safe on elevators or on the casino floors themselves. It’s a bad look. … You can really, severely, put a tarnish on Las Vegas.”

Las Vegas is in “uncharted waters,” he added.

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Kristal Ilboudo November 3, 2021

Most of the people on here white racist it’s just sad how you try to blame everything on blacks u should be ashamed of yourself but a lot of times it’s the white race doing the most out here begging on the streets drugs are at a all time high people have a personal choice to act how they wanna act but I’m black and I’m always in Vegas it’s sad because your so privileged in your race with everything that u throw a fit when things don’t go how u think they should face it blacks have more money now a days and can afford to do what they want to do even if they raised the rates which some rates are very expensive at MGM you still would see blacks because most people who come to Vegas usually have a lot of money with them so u blaming the black community blame yourself for being a racist
Namor August 26, 2021

Where ever there's a concentration of blacks and Mexicans, there gonna crime. Vegas lately got Hella black people that's why crimes are going up. It's just not right seeing a bunch poor black people with their sagging pants going to the like of gucci and chanel. Guess those government stimulus really boosted their way of life at least for the short run. Well after August guess there will be more excuses for them to commit more crimes.
Las Vegas no longer May 30, 2021

This is a old post but I just returned from Vegas and wow, I don’t think we would ever go back. I would call it feeling unsafe, but I also recognize that the the crowd has changed. When I went to school in SoCal (2007/2012) my friends and I used to drive to Vegas and have fantastic weekends. It felt classy, something special. PH was the cheaper hotel at the time and it felt nice, still. I’ve always liked staying at The Venetian or palazzo because it was beautiful and further from the strip = fewer drunk kids but now it just feels…trashy. We probably won’t go back because of the crowd of people, and that’s a shame because there are so many good restaurants in Las Vegas.
Mirin April 4, 2021

My sister is a RN and I work for a lab. We were offered a free night at the Venetian last September. We have stayed there before, because it’s very classy and elegant. That was not the case in September! The massive crowd was unruly, very loud and constant fights in the hotel casino and lobby. We had a suite on the 28th floor and a couple in the room next to us fought for hours both nights we were there. We called Security at least twice each night. And security would come and talk to the couple, they would leave the suite and come back an hour later and start fighting again. We have been to Vegas for the past 30 years at least twice a year. We have always loved it but this was something we’ve never experienced. Our taxi driver who had been working there for 20 years, said he’s never seen anything like it! We can only hope it gets better sooner than later. It was not the Vegas that we know at all!
Frank Gillardo February 13, 2021

It's very simple economics that is driving the Vegas experience right now. Rooms for $27.00 per night, $750.00 per month (Yes that's the rates on the strip) are cheaper than paying $2,000.00 + for a cruddy apartment in L.A... So now L.A. has come to Vegas to sell dope and prostitutes and of course the problems have followed too. Vegas is done, too P.C., too many liberals run it. The Mob made sure it was run right back in the good old days., Enjoy your declining urban trash hole all you democrats, you bought it, you own it! I will be spending my money in Macao.
Uncle Moe February 8, 2021

Looking at the webcams and watching recent fight videos on youtube says it all. Vegas has gone ghetto. If you go it's best to stay in a high-end resort to limit exposure to the low lifes and gangsta thugs now prevalent and rampaging in the city.
Vivian January 8, 2021

I wrote a comment but it seem to be delet it . I was on Vegas by September 2020. Was chaotic , a total different people , I use to go 1 time a year for the last 7 years, and I said to my self that I will never go back until the situation change . Low rate rooms bring all that animal over there. It was just disgusting .
RJ October 21, 2020

It’s the weed/marijuana being sold everywhere in LV and the crowds smoking it along the strip is out of control. Count me out LV until that’s cleaned up!!!
Bozo October 15, 2020

Whoever said the fights were due to "right wing extremists" didn't watch the videos.
Skip S October 13, 2020

This is all very sad but to be expected. Its especially troubling that my people on the lower end of the economic spectrum seem to be quite visible and (violent) troublemakers. That being said, Vegas has always been a hub of lowlifes of all colors. I feel sorry for that place, as none of my white collar friends would dream of going there until we are post pandemic. No easy solution to this.
Kat October 4, 2020

I’ve never been to Las Vegas and I’d like to go for Christmas this year and I want to stay at the Palazzo or the Venetian, it’s disheartening to read these comments. I don’t know if I want to go anymore.