Roughly 800 United States consumers were surveyed by Truist Securities about Las Vegas and their responses were more upbeat than expected. Truist analyst Barry Jonas reported the results in a May 27 investor note.
“Overall sentiment was more positive than we thought given widely reported value perceptions around the destination,” Jonas reported. He said nearly three-quarters of those polled (74 percent) still had positive perceptions of Las Vegas as a value-oriented destination.
An even higher number (88 percent) reacted favorably to the “all-inclusive” packages initiated by the Plaza Hotel downtown, and subsequently emulated by Caesars Entertainment, MGM Resorts International, and Boyd Gaming. Another 65 percent said their image of Sin City had actually improved over the last few years, while 78 percent were planning a visit in the next year.
However, macroeconomic and geopolitical worries still hung in the air. Fully half of those surveyed said they would possibly either spend less or not stay as long, due to such concerns. Forty-eight percent said they were shifting to regional casinos as a consequence.
Overall, “The survey speaks to the overall resilience of Las Vegas as a destination,” Jonas wrote. He said that the results showed an even balance between customers who were coming less frequently than five years ago and those who were visiting more often.
The analyst elaborated, “Our booking window followed a bell curve, with visitors most frequently opting to book hotels around two weeks out. This is not surprising, given most companies have spoken about a narrowing booking window over the past few years.”
Efforts to upgrade Las Vegas’ bargain-oriented image appeared to have had an effect. Thirty-eight percent of respondents said their view of the city was “Much better,” while 26 percent said it was “Slightly better.”
Only eight percent of those surveyed thought the city had worsened as a value. Seven-eighths of the eight percent found it only “Slightly worse,” with the remainder opting for “Much worse.”
Entertainment was seen as the top draw, with 56 percent of consumers calling it “Excellent” and another 35 percent deeming it “Good.” Respondents were evenly divided on where other values were excellent (37 percent) or good (37 percent also). “Given the recent cycle of negative news flow on Las Vegas value, this was surprising to us,” Jonas wrote.
Over half of those surveyed (56 percent) agreed with the sentiment, “Las Vegas offers good value for what I pay.” However, 37 percent were in accord with “Prices are high and value is eroding.” Seven percent chose, “Prices are too high and I no longer see value.”
Food, beverage, and hotel prices were identified by 60 percent as a key source of price increases. Forty percent zeroed in on resort fees and the cost of entertainment. Table minimums and the cost of transportation were singled out by 25 percent.
Almost three-fourths (73 percent) of consumers polled said they customarily visited downtown Las Vegas. Thirteen percent avoided it and 15 percent went occasionally. “We think this is surprising, perhaps reflecting the better value perception of downtown and worth exploring in future survey,” Jonas wrote, adding that it was particularly relevant to Boyd Gaming.
Contrary to Wall Street perceptions, 52 percent of respondents said regional casinos had not displaced Las Vegas as their gambling destination. A quarter said it “Often” had done so and 23 percent said “Sometimes.”
Fewer than half of consumers polled (47 percent) had traveled to Las Vegas primarily to attend a sporting event, that plurality dominated by Las Vegas Raiders games (chosen by 29 percent). Seventeen percent had traveled to see Golden Knights hockey, while seven percent chose “Other.” Two-thirds expressed interest in seeing major-league baseball or NBA basketball in Vegas.
Bargain-oriented hotels scored well with respondents, four percent of whom liked to stay at Harrah’s Las Vegas and another four percent chose independent Casino Royale. MGM Grand was favored by 11 percent, Caesars Palace by seven percent, and Bellagio by six percent. The Cromwell placed last.
Survey respondents identified themselves as being from every U.S. state except for Vermont. California led with 112 customers, followed by Texas with 90, Florida with 69 and New York State with 58.
