If It Doesn't Happen In Vegas, It Doesn't Have To Stay There

Vegas is now getting all ripped up by its image as a haven for spendthrift debauchery. Ironically, the local boosters double-downed on that decadent image to replace the earnest family-friendly marketing of the late 80's-early 90's (which replaced the decadent marketing of the 70's, etc. etc.) Now, no one is interested in sin:

Some locals who depend on conventions to survive say they can't afford the war of words going on between President Obama and Mayor Oscar Goodman.

Last week, both Wells Fargo and Goldman Sachs canceled corporate junkets scheduled to take place here in Las Vegas.

They were trying to get away from the perception that they are taking the money given to them in these bailout packages and using it to treat their CEO's to lavish vacations.

The comment President Obama made about the matter at a town hall meeting on Monday was:

"You are not going to be able to give out these big bonuses until you've paid taxpayers back, you can't get corporate jets, you can't go take a trip to Las Vegas or go down to the Super Bowl on the taxpayers dime."

...Gaming revenues fell every month last year and they were down nearly 19% in December which is a drop of 9.7% for all of 2008.

That is the worst gaming revenue decline in Nevada's history.

But as Richard Abowitz notes, few convention vacations are as inexpensive as the Vegas convention vacation. The city's habit of fronting inflated list prices in order to convey the illusion to the sponsors that they are getting a good deal is a big part of the problem:

Last Friday CNN reported on a convention taking place this week at the Venetian for a group called the American Securitization Forum. In a voice-over, the correspondent offered this on the attendees:

"They'll huddle here at the five-star Venetian on the Vegas Strip, where gondolas float beneath $300-a-night rooms, hobnobbing with government officials, doing business deals, trying to plug leaks in an industry that's been kept afloat by government bailouts."

I was dubious and challenged the $300 price by going to the Venetian site and finding rooms in some cases for $145, less than half of that CNN price quote. I tried, without success, to reach CNN to find out where the $300 number came from.

Today, the Review-Journal makes a similar point in a front page story that takes on the CNN report. The Review-Journal notes of the CNN story: "The report cited '$300 hotel rooms,' as an example of extravagance, even though rooms at The Venetian are actually going for $189 per night on Las Vegas hotel-booking Web sites." The Review-Journal makes no note of any effort they may have made to reach CNN to find out where the cable news network got that $300-a-night number.

...In fact, this example shows how the perception that Vegas is outrageously expensive and for top-tier extravagance only has been nurtured and fostered by the resorts. Why? The resorts want you to think that you have a bargain price and value. You are getting a $319 room and paying only $219. But even that $219 is a bit much when compared with lower rates online. There are also multiple packages that include discounted rooms along with, say, airfare. So the higher the official rate for a room, the more wiggle room for the wide range of coded packages and discounts the resorts are constantly putting together and sending out to anyone who registers on their sites.

...This tactic of fronting inflated prices to create a sense that people have received a deal is what is hurting Vegas now so badly. The media cannot be blamed for quoting list prices even if locals know that list prices are not what things really cost.

I think now is the time to start announcing openly how cheaply rooms can be had in Vegas, as well as promoting honesty in pricing of show tickets. Otherwise, I think Las Vegas really might become a "toxic city" for convention business. Vegas needs to do more than offer bargains, but actually front-and-center how cheaply things can be had here right now.

On Monday night, Goldman Sachs Group pulled out of a three-day meeting at Mandalay Bay set for later this month. They are holding the convention instead in San Francisco. ... A Mandalay Bay official, who requested anonymity because he was not authorized to release customer information, said the bank agreed to pay the hotel $600,000 to cancel its reservation.

...If I get this right, Goldman Sachs would rather spend more money paying Mandalay Bay to cancel and then book a San Francisco hotel, than come to Vegas now. In other words, the issue is no longer about the best place to hold a cost-effective meeting, but the perception that a meeting in Vegas on its face is wasteful spending, whereas spending even more to go to San Francisco can sidestep the controversy -- even if getting that to happen requires meeting the very definition of wasteful spending (paying for the same convention essentially twice).

Vegas had better be quick and proactive in reminding people that our convention business and facilities are meant to be affordable or we are in for some grim times from a wound that is increasingly looking self-inflicted.

Americans in general, and Vegas in particular, have a very strong "B.S." culture. Everybody wants to hear the fantasy, not the truth.

Bad times are very hard on the B.S. culture, however. People finally want to hear the truth, even if it hurts. One example is how rapidly musical theater faded during the Vietnam War. People were no longer interested in fantasy characters singing down the street. Instead, they wanted to stick it to the man. I'm sure there are plenty of other examples. The Great Depression was full of examples.

Just drop the special deals and tell people what the rooms really cost, for chrissakes....