Las Vegas Visitation Soars In January As Room Rates Continue To Rise

In January, Nevada casinos had another strong month of gaming revenue, amassing over $1 billion from gamblers for the 23rd month in a row.

The significant month was partially driven by an upsurge in gaming revenue on the Las Vegas Strip. Whether by coincidence or not, there was a substantial increase in traffic at Harry Reid International Airport. Unsurprisingly, the rates for hotel rooms in Vegas continued to rise.

Although visitation to Las Vegas was slightly lagging behind the 2019 rate as December concluded, a significant surge occurred in January as a large number of visitors flooded back to Las Vegas.

Harry Reid International Airport set passenger record in 2022

People visiting Las Vegas and Nevada often frequent the myriad of casinos in the state, attempting their fortune at slot machines and table games. However, online gambling in Nevada is restricted to sports betting and poker since online casino games are not yet legal in the state.

In 2022, Harry Reid International Airport (LAS) in Las Vegas established a new record for passenger numbers. There was a 32.6% surge in passengers in December, concluding the year.

Last year, the airport witnessed over 52 million people travelling in and out, showing a considerable rise from 2021 and surpassing the 2019 record of 51.5 million passengers. In 2022, the airport set new records for passenger traffic in three separate months. For the first time in its history, LAS served more than 5 million passengers in the month of October.

Airport saw more than 4 million passengers in January

Rosemary Vassiliadis, Clark County director of aviation, stated that 2023 has started strongly at the bustling airport near The Strip, much like the increase in gaming revenue witnessed in January.

“We are no longer talking about an air travel recovery at Harry Reid International Airport. This is undeniably a period of growth that we expect will continue in 2023. From sporting events to concerts, dining to gaming, there truly is something for everyone in Las Vegas.”

The first monthly passenger report of 2023 from LAS indicates that the airport is set to surpass the previous year’s record. In January, LAS catered to 4.4 million passengers, marking a 39.5% rise compared to January 2022.

The most significant rise came from international passengers, showing a 151.8% increase compared to the previous year when travel restrictions due to the COVID-19 pandemic were still in effect.

Many of these international visitors attended CES (formerly known as the Consumer Electronics Show) for the first time since 2019.

Nearly 80% of Las Vegas rooms full in January

Every visitor to Vegas needs accommodation. The average daily cost of hotel rooms in Las Vegas has seen a rise in the past year, paralleling the growth in airport passenger numbers.

According to the Las Vegas Convention and Visitors Authority, approximately 3.2 million out of the 4.4 million individuals who passed through LAS in January chose to stay in Las Vegas.

January saw a 32.3% year on year increase in occupancy, although it was slightly below that of 2019. The number of convention attendees in Las Vegas, which reached 513,000, surged by an impressive 72% compared to the previous year.

In January, Las Vegas saw an occupancy rate of 79.1% for all hotel rooms, marking a near 19.8% rise compared to January 2022.

Hotel room rates still on the rise

In January, hotel room rates saw an increase in line with rising capacity – a common trend. The average daily room rate for this month was $191.62. This figure encompasses rates for weekdays when conventions are held, as well as weekend rates for those traveling for leisure.

In general, there was a 32% increase in the room rate compared to January 2022. Additionally, it was 22.4% higher than in 2019.

Over the past year, hotel room rates have been on the rise due to an influx of visitors during the weekdays for conventions, and during the weekends for entertainment. The hotel room rates in Las Vegas are not expected to decrease anytime soon. Casino and venue operators have resumed filling up weekends with residencies, limited engagements, national concerts, and major sporting events.

The heightened emphasis on extra entertainment is attracting large events such as Taylor Swift’s arena concerts and the Las Vegas Grand Prix. The latter, in particular, is a significant financial event, with predictions indicating it will have twice the economic impact on Las Vegas in 2024 compared to the Super Bowl.

The economic impact of F1 is significantly reflected in hotel room rates. For instance, Caesars alone anticipates a 5% rise in profits during the F1 race, which is scheduled to occur during a traditionally slow weekend in Las Vegas.