Confusing Cheap With Value

Has Las Vegas lost its way? Critics argue the city no longer offers the value it once did as prices soar and service declines.

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There’s a massive debate raging over Las Vegas. I’m going to lead off this entry with a rare instance where I disagree with industry-everything Chris Grove, who wrote on LinkedIn:

“Las Vegas remains one of the cheapest major destinations in the U.S. across hotels, entertainment, and dining. It may still be "too expensive" in absolute terms, but the cost increases are nowhere near NYC, Miami, SF, etc, etc.

”It's interesting to watch these grievance narratives take hold and spread. People like to complain more than they like to praise, I guess? Vegas is an easy avatar for generalized concerns about inflation due to its (long-since abandoned) legacy reputation as an extraordinary value. And piling on to a complaint train picking up steam is appealing in its own way.”

Actually, Grove is spot on, a Las Vegas getaway can be cheap, the problem is, not many people are looking for a “cheap” Las Vegas adventure, they are looking for value, and Las Vegas no longer offers that experience.

The Difference Between Cheap and Value

$10 earbuds are cheap. The problem is that they either don’t work right out of the box or shit the bed within a week or two. So there isn’t much value in purchasing them.

But you don’t have to buy a $400 pair. You can get a lot of value out of a $50-$60 pair.

Right now, Las Vegas is offering $400 and $10 earbuds; there aren’t any $60 options.

As former casino executive Dan Real put it in an excellent LinkedIn article to all the pundits and casino executives pointing to the value proposition Las Vegas offers, specifically, MGM CEO Bill Hornbuckle, pointing to the affordable options on The Strip, like Excalibur — Dan and I somehow landed on the same title and theme for our respective articles:

“I believe Bill is confusing cheap with value. The indoor camping experience of the Excalibur is well known and rarely the point of the online debates. The people you should be concerned about are the visitors who will gamble and spend money on food and entertainment. They aren't cheap - they are pissed.”

“Vegas doesn't need more cheap, they need more value… The real concern isn't what happened to the $1.99 Shrimp Cocktail and the $12 Buffets. It's the hour wait to check in, and then when you finally get to the front desk, they do have a room ready, but if you want it right now, that will be an additional $40. You can go have a $28 (well) Vodka Red Bull while you sit there with your luggage until 4 PM. CEO's and their staff should have to spend four hours standing directly next to the front desk employees on one of those days.”

Dan and I discussed this in a forthcoming podcast episode, where I noted some of my own experiences and my belief that the price-gouging has reached tipping point levels.

Dan and I also pointed out that it’s not simply the rising resort fee or paid parking; it’s the long check-in lines, sensor-monitored waters in the room, dwindling rewards, fewer free drinks (often based on play), smaller pours, acting like handing you a free water at check-in is some genius customer service idea, higher table minumums, and fewer face-to-face interactions with employees, as they are replaced by technology and automation.

Casino consultant Paul Sculpher hit on this same point in response to Grove’s comments on LinkedIn, noting the “service-related dowgrades” in recent years (bold mine):

Chris Grove, but it's not just about the room rate, or room plus resort fee. It's the delta in the whole experience.

I doubt Courtyard Marriott has 45-minute check-in lines, variable beer prices in the store, and $100+ fees for putting a bottle of water in the minibar.

Add in that the core reason people go to Vegas - boozing and gambling - has got wildly more expensive even over the last couple of years. Human valet service at slots is way lower than ten years ago, and there are plenty of other service-related downgrades. I don’t think it's a fair comparison to an NYC hotel.

Anyway, something has caused this visitation dip overall, right? From my perspective, it's simple - I'm tired of getting gouged on Strip. Our standard trip used to be five nights on the Strip, two out at Red Rock or GVR (quieter, nice to chill at the end of a trip). Now it's 2 / 5. We can afford Strip X 7, but are tired of getting taken advantage of.

Opinions Vary

Hornbuckle and Grove believe it’s a narrative problem. The issue is that Las Vegas is letting itself be defined negatively, as Hornbuckle said, “We’re putting on a push because we let the narrative get away from us in the context of value.”

For Grove, the current negativity is a “grievance narrative.”

First, as I mentioned on my podcast with Dan Real, why not allocate all the money you’re spending on these ‘shift-the-narrative’ ads to your customer service instead?

Second, just like with cannibalization or this clearly gambling product isn’t actually gambling, telling people over and over that their reality isn’t real doesn’t work. When you warn people they are being gaslit, they think you are gaslighting them. Who is correct doesn’t matter at that point.

The problem, as I see it, is that if you're approaching it from the perspective that Las Vegas is a must-visit spot, you’ll miss or overlook a lot. However, when people can vote with their wallets, Las Vegas suddenly becomes easy to avoid, and that could explain the declining visitation numbers.

Setting aside gambling, which people can do almost anywhere in 2025 (at regional casinos or online), a big part of the allure of Vegas was that the little guy got a taste of the high-roller treatment. That’s not part of the equation in other high-priced cities. The value (not cheap, value) spots are places like Nashville, Austin, and New Orleans.

As I previously wrote, I don’t believe Las Vegas is scaring away the first-time visitor; I do think it’s making previous visitors question a return trip:

“Casinos, especially those on the Las Vegas Strip, have positioned themselves as entertainment hubs, so they aren’t just fighting other casinos (and online gambling offerings) for customers; they are fighting everything from art museums to sports events.

“Las Vegas has always been something of a bucket list destination for travelers (like New York City, Paris, or Disney World). In the past, people would have a great experience and would become return visitors. As prices go up, fewer and fewer people are having that great experience.”

I’ll close this one out with another previous thought:

“Ultimately, the key to reversing this trend isn't just tweaking resort fees or game odds; it's about rediscovering value in the Vegas experience. By emphasizing unique, irreplaceable draws, paying more attention to the little things, while keeping costs in check, the city could reignite visitor loyalty. Otherwise, as choices multiply and wallets tighten, Las Vegas risks fading from must-do status to a ‘been-there-done-that’ or ‘maybe someday’ destination.”

The good news is that Las Vegas can rebound fast; it has elasticity. Dial back the nickel-and-diming, amp up the city’s unique ‘wow’ factors, and loyalty returns.

What do you think?