

Las Vegas and its perfect business model - Danmatt
http://launchlab.co.uk/article/Business-Blog/Las-Vegas-and-its-perfect-business-model/949

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TomOfTTB
This isn't a very well informed article. Let me give you some background real
quick. I spent my elementary school years in Vegas. I've lived in Southern
California for 14 years now and Vegas is still more home to me than here. I
love that town.

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.

