I’ve been visiting Las Vegas for decades. I’ve seen how it’s changed over the years, and frankly I’ve enjoyed pretty much every version I’ve experienced since the 1980s. It was and remains one of the iconic adult playgrounds in the world.
But this time things seem a bit different. Part of it has to do with me. I’ve been there, done that. Yet I couldn’t help but be turned off by the obscene prices the last time I visited. Fortunately I was there on a company trip and all expenses were covered, but the price gouging still had an impact.
So I haven’t been suprised by some of the recent news about trouble in Sin City. I’ve been noticing complaints on social media. People are outraged by the resort fees. Fewer friends try to arrange Vegas trips these days. And now we’re seening more news articles about lower foot traffic in the casinos and the return of room rate promos in an attempt to lure more visitors.
Post-Pandemic Boom is Waning
The post-pandemic travel boom saw a surge in demand that some called “revenge travel.” People were desperate to traval after being stuck at home during the pandemic, and pent-up demand drove a global travel resurgence. In the U.S., domestic leisure travel spending soared, hitting $972 billion in 2023, up 31% from 2019, according to the U.S. Travel Association. Naturally, Las Vegas was a prime beneficiary with record-breaking visitor numbers—40.8 million in 2023—and hotel revenue peaks, with average daily rates climbing from $137 in 2019 to $196 in 2023, per the Las Vegas Convention and Visitors Authority. Other hotspots like Orlando, Miami, and international destinations such as Paris and Cancun similarly rode this wave, capitalizing on high demand with elevated prices.
But every party ends at some point. In 2025, this boom is fading, and it’s happening at a time of renewed economic uncertainty. For Las Vegas, this shift is palpable. Super Bowl weekend saw huge discounts at some hotels, and social media posts talked about the city being “dead” that weekend.
Resort Fees and Price Gouging
Las Vegas hotels are operated to squeeze every last dollar out of travelers, and they’ve become experts at that over the years. Boom times help of course, and consumers kept coming back for more. Those days might be over. Consumers are livid over resort fees, drink prices, parking fees and more. Also, the casinos have been tweaking gambling payouts for years. I won’t play blackjack anymore given that greed has led to ridiculous payout changes that favor the house.
The city long ago shifted from a value-driven resort destination to a more luxury-focused experienced. But this shift has now completely overtaken the narrative. The resort fee hikes are a prime example (e.g., MGM’s increases in January 2024 added $25-$50 million in annualized earnings).
Vegas continues to have a unique appeal, with new additions like the annual F1 race and the amazing Sphere, but the backlash against high prices is real, and it will likely get much worse.
Inevitable Discounts
Las Vegas used to be know as a great value option for some hedonistic fun. We still have the hedonism, but the value is mostly gone.
We’ve started to see more hotel discounts, led by the lower-end propoerties, and that trend will likely accelerate. Price gouging works for only so long. At some point you start alienating your best customers, and then the pain boomerangs back with fewer visitors.
As for me, I’ll happily go back if it’s covered as part of a business trip. But other than that, I’ll wait for the Vegas hotels to come to their senses and start providing real value to their customers.
