Las Vegas and its perfect business model(launchlab.co.uk)
launchlab.co.uk
Las Vegas and its perfect business model
http://launchlab.co.uk/article/Business-Blog/Las-Vegas-and-its-perfect-business-model/949
2 comments
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http://launchlab.co.uk/article/Business-Blog/Las-Vegas-and-its-perfect-business-model/949
But anyone who says the business model is perfect hasn't done their homework. Vegas has struggled against irrelevancy several times in the last decade or two. The move towards "familly friendly entertainment" in the 90s is just one example. Another is...well..now.
Vegas is hurting right now because their business is not only tied to the economy but tied to the economy doing well. Most business models do fine in a moderate economy but Vegas requires people feel good about the future which means recovery has to reach a higher level for their business to kick in.
Also the author says "Vegas makes people happy with becoming poorer" but that's not the case. The lure of Vegas is getting rich quick. There's a saying in Vegas that they "Sell you a dream (being rich) and for a brief time let you live it (by waiting on you in the Hotel). But it's all about the dream, not the loss.
Finally the author claims Vegas is full even in the current economy. That's simply not true. A look at the annoyingly pervasive Excalibur ads as of late are enough to prove that. But if you still doubt I suggest you go to the reservation site of any vegas casino and try to find a room. You'll have no trouble..
As for new construction of hotels and luxury condos do a search for Echelon Place (Wikipedia Entry here: http://en.wikipedia.org/wiki/Echelon_Place) or CityCenter (http://en.wikipedia.org/wiki/CityCenter). Both were scheduled to be built by now and both are on indefinite hold because of the economy (among other things).
Vegas is an amazing place but it's successful because it constantly reinvents itself. That's not easy and anyone who claims it is doesn't know what they're talking about.