Venetian Macao Discounting Suites
In my Inbox this morning was a holiday suite offer from the Venetian Macao (see screenshot). The rate of HK$1,188/night is the same as what I paid during their Grand Opening introductory offer. I'm sure only a handful of the regular readers here have the ability to take advantage of their offer, but for gaming biz dweebs this simple little marketing campaign is quite a bit more interesting. You may wish to fire up the ETrade and consider shaving off a few of those LVS shares you've got sitting around.
The Venetian Macao is having a 50% off sale on their excess room inventory.
You're probably thinking, yeah, but it's the holiday season, nobody goes on gambling trips then. Anybody whose ever been to Vegas during the height of the Christmas season knows that the only people in town then are Asians, Middle Easterners and Slayer fans (like me). This is when the Vegas casinos give their hard working headliners a few weeks off and fill their showrooms with Jackie Cheung and other Asian superstars.
Could it be... that the Venetian Macao's grand opening hubub has settled down and the word has gotten out that there isn't a gosh darn thing to do in Cotai? Unless you find entertainment value watching construction cranes pirouetting to the sweet kling-klangfarben melodie of steel girders being pounded into the ground.
If we build it, they will come... for a while at least. Then we'll offer discounts and they'll come again. In the Smartmoney.com interview I mentioned the other day, Steve Wynn had very clear thoughts about oversupply and what metrics he keeps an eye on. Take it away Steve...
SmartMoney: What's the most important figure you watch?
SW: Noncasino revenue. I look at hotel occupancy - how much is complimentary and how much is paid. If people are paying more for their rooms and the comps are smaller, it's a happy moment. Room rates have gone to $311 in the first six months from $293 in the first six months of last year.
Could this inventory dump by Venetian be a means keep their supposed high-flying occupancy rate strong at the expense of actual revenue generation? I guess we'll have to wait until Q4 numbers are released to see what the outcome is, but I do think its a bit odd to be rolling back room rates this time of year.Check it out