New LV resorts say amenities will justify higher prices

Marketing experts at new resorts in Las Vegas are counting on the city's evolution into a complete resort destination to command record-high room rates.

Eight properties made presentations to 21 Mexican tour wholesalers and others explained what they have to offer at a small trade show last week. The inquiry the wholesalers repeated most often: How much will the rooms cost?

The four mega-resorts coming on line in the next year -- Bellagio, Mandalay Bay, the Venetian and Paris -- all plan room rates higher than ever in Las Vegas.

To attract high-paying customers, resorts are looking beyond their traditional markets. Some are about to begin advertising in publications read by first-class travelers while others are looking beyond U.S. borders -- which is why some of them have taken such a keen interest in Gov. Bob Miller's recent trips to Asia and Latin America and his upcoming mission to Europe.

"Las Vegas is evolving," said Kurt Ouchida, a spokesman for The Venetian. "Over the past decade, Las Vegas has been known as a value-driven destination with a multitude of hotel choices. It has succeeded using this as its marketing tool and has taken advantage of tremendous airlift attracting the mid-level market to Las Vegas.

"In more recent years, consumers themselves have demanded that resorts in Las Vegas provide upgraded amenities as well as an upgraded hotel room product," Ouchida said. "Surprisingly, the average room rate has been a clear indicator that visitors will pay a premium for a superior room product."

Last week's reception of the Mexican tour wholesalers, who now will be making their own presentations on Las Vegas to travel agents, was a spinoff of Miller's first stop on his Latin American tour.

Tom Tait, executive director of the Nevada Commission on Tourism, and Brenda Hughes, who coordinates international travel for the commission, joined with Miller in welcoming the wholesalers.

Miller's message to the Mexicans: Why send your clients to destinations all over the world when they could come to Las Vegas and experience the best the world has to offer, with Italy (Bellagio and Venetian), the South Pacific (Mandalay Bay) and France (Paris) all on the same street with ancient Rome (Caesars Palace) and Egypt (Luxor)?

The group got a good laugh out of the remark, but Las Vegas' posturing as a complete tourism package is no joke.

Every resort's presentation capitalized more on the upscale shopping, fine dining and recreational amenities than gaming. Every presentation gave more statistical information about the size of their shopping centers and convention facilities than they gave about the size of their casinos.

"It's difficult not to have a good time in this city," said Esteban Benavides Perez, vice president of Fun International Tours of Garza Garcia, Mexico. "We love the 24-hour activity."

Perez said Las Vegas' primary competition is Southern California and Orlando, Fla. But because Las Vegas is such a short flight when it's direct and more amenities will become available with the opening of each resort, most wholesalers are looking to make package deals with the various properties.

"To you, some of the rates quoted are higher than what you've had, but for Europeans, this is still cheap," Perez said.

And, wholesalers are likely to bargain for lower rates in packages if they guarantee the tourists will be there.

Francisco de los Santos, who handles charter flights for Allegro, the largest Mexican charter operation, said his company is likely to increase the frequency of flights between Las Vegas and Mexico City and Monterrey as the city becomes more popular to Mexicans. Flight times to Las Vegas: two hours and 25 minutes from Monterrey and three hours and 20 minutes from Mexico City.

Allegro flies Boeing 727 jets configured to hold 165 passengers. America West, American and Continental offer one-stop service from Las Vegas to several Mexican destinations, but there is no non-stop scheduled service.

Allegro also is looking to partner with local companies to serve Las Vegas' Hispanic population, estimated at about 200,000, for flights to Mexico.

While marketing to a foreign country was the focus of business last week, several other strategies are planned for some of the new properties opening or expanding in the coming 12 months.

"We're going to roll out our campaign to trade magazines that focus on conventions and trade shows and the travel industry," said Eloise Balmer, who gave the marketing presentation for Paris.

Balmer said the Mexican group was one of the first to see a new video on the property, which is due to open Sept. 1 1999, with rack rates ranging from $139 on weekdays to $179 on weekends.

Paris, part of the Hilton chain, will have 2,700 rooms, 300 suites, a turn-of-the-century Paris motif, a 130,000-square-foot convention area and several restaurants, including a gourmet room at the top of the 500-foot Eiffel Tower replica under construction.

Mandalay Bay's presentation included a review of several restaurants, the House of Blues nightclub and the tropically themed wave pool where surfing competitions will be conducted for guests. Other unique features: a swim-up shark exhibit and a shopping center with 1 million square feet of retail space, making it one of the largest malls in the city.

Rack rates will range from $125 on weekdays to $159 on weekends.

Five floors of Mandalay Bay will be dedicated to a separate hotel chain -- the Four Seasons Hotel Las Vegas.

Gus Tejeda, director of sales for the property, said the company expects to bring its own loyal customers to Las Vegas.

"We've had guests ask us, 'When are you going to build in Las Vegas?' " said Tejeda. "This seemed like the perfect opportunity for us, teaming with Circus Circus at what we expect will be a spectacular property."

Two other companies have a similar strategy -- and their own customer loyalties -- with an expansion at the MGM Grand.

Tracy Bowman, sales manager at MGM, said The Mansion, a three-story Marriott property with suites and bungalows ranging from 1,300 to 13,000 square feet -- some with their own private pools -- will open in December. A 500-room Ritz Carlton non-gaming hotel also is planned at the MGM and a 380,000-square-foot conference center already has opened.

"Many of the tourists we expect to stay in our new rooms are already traveling," Bowman said. "We're giving them more options and attracting more people to Las Vegas with all the amenities. Many of them will be loyal to the brands they already use."

Another property that has built-in loyalty and is credited with starting the upscale retail explosion is Caesars Palace.

Caesars, which opened its new tower in December and has another expansion of its Forum Shops on the drawing board, accommodated Mexican guests by addressing them in Spanish, the only presentation in that language.

The Venetian will open in April.

It believes it is redefining the Las Vegas landscape with a 3,000-suite hotel that it plans to double in size, becoming the largest hotel in the world when complete. Its Canal Shops retail center will feature a grand canal with gondoliers shuttling tourists between stores.

"It is readily apparent that Las Vegas' consumer mix is changing and in order to meet the consumer's demands, it has forced companies to think beyond the traditional Las Vegas approach to one that is on par with true resort destinations around the world," Ouchida said. "The Venetian is what Las Vegas will become, not what is has been. It represents a paradigm shift."

archive