Las Vegas is renowned for offering some of the cheapest hotel rates in the world for a major tourist destination. While luxury resorts can cost hundreds per night, it’s possible to find rooms on the Strip for $50 or less during off-peak periods. This incredible affordability for hotels has been a major draw for budget-conscious travelers and helped make Vegas one of the most popular vacation spots.
The rock-bottom hotel pricing in Las Vegas is made possible by a few key factors. First, the city has an immense hotel room inventory with over 150,000 rooms just on the Strip alone. This massive oversupply of rooms forces hotels to keep rates low to fill occupancy. Additionally, casinos actually use cheap hotel rooms as a loss leader to attract guests who will hopefully spend money gambling, dining, and partying. The casino profits subsidize being able to offer rooms at rates far below their actual cost. Finally, the intense competition between dozens of hotels on the Strip creates a fierce pricing war, driving down rates even further as properties undercut each other.
Huge Room Inventory Drives Down Prices
With over 150,000 hotel rooms lining the famous Las Vegas Strip, the city has a massively oversized supply of rooms compared to demand on any given night. This staggering room inventory – more than the total for entire countries – is one of the key reasons Las Vegas hotels can offer such cheap base room rates.
Simple economics dictates that when supply vastly outweighs demand, prices get driven down through competition. No single Las Vegas resort wants rooms sitting empty, so they have to keep rates low enough to lure customers away from the dozens of other nearby hotels. If rates were higher, tourists would simply book elsewhere.
The concentration of this huge room supply in just a few square miles also exacerbates the pricing pressures. Nowhere else in the world has a comparable hotel density as the Las Vegas Strip. With so many options packed together, hotels have to compete aggressively on room rates to fill their properties. Discounting rooms is an essential marketing tool.
Las Vegas was overbuilt from the start, with visionary entrepreneurs willing to gamble on excess supply in hopes of capturing future tourism growth. That expansive foresight paid off as Las Vegas became an entertainment juggernaut. But it also locked the city into a perpetual cycle of discounted room rates driven by the immense inventory of available rooms.
Casinos Subsidize Cheap Rooms to Attract Gamblers
The famously cheap hotel rates in Las Vegas are not just a gimmick – they are an intentional strategy by casinos to get guests through the door. While hotels make some profit from room revenue, the real money is made by separating visitors from their cash on the casino floors.
Casinos are able to offer discounted room rates, often pricing them below cost, because they operate on a “loss leader” model. Deeply discounted rooms act as an enticement to get gamblers to book a stay and spend their vacation dollars gambling, drinking, dining, and partying on the resort premises.
The casino business model revolves around getting heads in beds and bodies on the gaming floors. By offering cheap rooms, sometimes as low as $20-30 per night, casinos increase their chances of extracting far greater profits from guests who may drop hundreds or thousands of dollars while gambling, imbibing, and seeking entertainment during their stay.
Offering low room rates is a small price to pay for casinos to get guests on-site and engaged in revenue-generating activities like gambling, purchasing overpriced beverages, attending shows and clubs, and spending lavishly on amenities. It’s all about maximizing total resort profit, not just room rates. The hotel rooms are mere lack-trimmings to entice visitors to experience – and spend – within the full casino-resort experience.
Intense Competition Keeps Rates Low
Las Vegas is one of the most oversaturated hotel markets in the world, with dozens of massive casino-resorts fiercely competing for visitors. This cutthroat competitive landscape is a driving force behind the city’s notoriously cheap hotel rates. With an abundance of room inventory, hotels are locked in an endless battle to undercut each other’s prices in order to fill rooms.
The intense competition is fueled by Las Vegas’ business model of using low-cost rooms to attract guests who will spend money gambling, dining, drinking, and partying. Resorts can actually lose money on room rates, viewing them as a marketer’s tool to get heads in beds and dollars on the casino floor. With so many hotels vying for customers, rates are driven down to rock-bottom levels through competitive discounting.
The market forces at play create a race to the bottom on pricing. If one major resort drops rates, others are forced to match or beat those prices to remain competitive. This cascading effect can quickly drive Strip-wide rate drops as hotels leapfrog each other with enticing offers and promotions. Travelers willing to keep an eye out and book at the right time can capitalize on these pricing wars for remarkable Vegas deals.
Why Are Hotels In Las Vegas So Cheap?
Nearly all major Las Vegas hotels along the Strip charge mandatory resort fees ranging from $20 to over $50 per night. These pesky fees are charged on top of the advertised base room rate and can drastically increase the total nightly cost of your hotel stay.
Resort fees were originally introduced to cover amenities like fitness centers, internet access, and local phone calls. However, over time they’ve become a profit center for hotels and a way to advertise deceptively low base room rates. Today’s resort fees essentially act as a second nightly room rate charged separately.
A $30 per night resort fee may not seem too egregious, but it adds up quickly over a multi-night stay. For a $100 per night room rate, a $30 resort fee is a 30% price hike. On a 5-night vacation, you’re paying an extra $150 in mandatory fees.
The resort fee landscape is constantly shifting, with hotels frequently adjusting fee amounts. Currently, some of the highest resort fees in Las Vegas are at luxury properties like the Aria ($51/night), Vdara ($45/night), and Caesars Palace ($44/night). Meanwhile, more budget-friendly hotels like Circus Circus ($27/night) and The Strat ($35/night) have lower but still substantial fees.
Resort fees have become extremely unpopular with travelers who feel nickel-and-dimed by hotels. However, they show no signs of going away as hotels become dependent on the revenue stream. Your only way to avoid them is by booking off-Strip or at one of the few remaining independent hotels without resort fees.
What Resort Fees Cover?
Resort fees are mandatory nightly charges tacked onto your room rate, ostensibly to cover certain amenities and services. In Las Vegas, resort fees range from around $20 to $50 per night at major hotels. So what exactly do these fees get you?
A big portion covers the cost of the hotel’s pool areas, which in Vegas are often massive complexes with multiple pools, landscaped grounds, cabanas, and other amenities. Resort fees also provide guests with access to the hotel’s fitness center and any other gym facilities.
Another common inclusion is in-room WiFi access, which most hotels now charge for unless you pay the resort fee. The fees may also cover other internet services like printing services in the business center.
Depending on the hotel, resort fees can grant you free local and 1-800 calls, access to the hotel’s concierge services, airline boarding pass printing, and even discounts on certain hotel amenities and services.
Some hotels get more creative, including things like free parking, shuttle services around the Strip, and credits towards hotel restaurants and entertainment in their bundled resort fee offerings.
So while annoying, resort fees do ostensibly cover some amenities that guests would likely use during a Vegas stay. But they can add up significantly, effectively increasing your nightly rate by 30% or more in many cases.
Best Value Hotels for Low Total Rates
When factoring in both the base room rate and the dreaded resort fees, a few Las Vegas hotels stand out as offering the best overall value for budget-conscious travelers.
Excalibur Hotel & Casino is consistently one of the cheapest hotels on the Strip, with rooms often available for under $50 per night before fees. While its $39 resort fee is on the higher side, the low room rate helps offset that added cost. As a bonus, Excalibur has gone through renovations in recent years to modernize and upgrade the castle-themed property.
Circus Circus Hotel & Casino caters to families on a budget with some of the most affordable room rates in Vegas. You can frequently find rates under $30 per night, and the $37 resort fee is middle-of-the-road compared to other hotels. The kids will also enjoy the free circus acts and carnival games in the casino.
For a more modern, upscale option, The Cromwell Hotel offers surprising value in the heart of the Strip. Compact European-style rooms start around $100 per night, and the $41 resort fee is fairly standard. But you get an elevated experience with stylish, contemporary decor and amenities like the lively Drai’s Beach Club and Nightclub.
No matter which hotel you choose, be sure to compare the total room rates including all taxes and resort fees. Timing your visit for weekday stays or the summer off-season can also yield even better nightly rates.
Finding the Cheapest Las Vegas Hotel Rates
Las Vegas hotel rates fluctuate significantly based on demand. The most expensive times are holidays, conventions, and weekends when the city is busiest. To score the lowest rates, aim to visit midweek during shoulder seasons like late spring or fall.
Summer in Vegas can actually offer some great hotel deals, despite the scorching temperatures. Many hotels drop rates to entice visitors during the sweltering summer months. Rates start climbing again around Thanksgiving and remain high through the holidays and into January.
When booking, always check for package deals that can save you money by bundling your room with airfare, shows, meals, or attraction passes. Many Vegas hotels also offer promotions like free nights, resort credits, or room upgrades when you book in advance or through their player’s club.
One of the best ways to score free or deeply discounted Las Vegas hotel rooms is by gambling enough to achieve a high tier in the casino’s players club. By earning points or comp dollars through your play, you can redeem for free nights, meals, shows, and more rewards. Just be cautious that the “free” rooms don’t come with expensive resort fees attached.
Is Las Vegas Still an Affordable Destination?
While the era of dirt-cheap Vegas rooms and endless free buffets is long gone, Sin City remains a relatively affordable destination compared to other major cities. Room rates have steadily risen over the years due to inflation and increased demand, with the average Strip hotel now costing around $150 per night before resort fees and taxes. However, this is still cheaper than comparable hotels in travel hotspots like New York, Los Angeles, or Miami.
Gone are the days when casinos would heavily comp rooms, meals, and shows to keep gamblers playing. With gambling revenues declining, properties have cut back on these lucrative freebies. Visitors can no longer easily score free rooms just by playing a little bit at the tables or slots. Free-play gaming chips and buffet passes are also much harder to come by these days.
That said, Las Vegas remains a strong budget option for several reasons. The city’s massive hotel inventory leads to competitive pricing, especially during slower periods. Reasonably-priced dining, entertainment, and attraction options also help keep overall vacation costs down compared to other major U.S. cities. While not as cheap as it once was, Vegas still offers an affordable travel experience if you hunt for deals and discounts.
Tips for Saving Money on Your Vegas Hotel Stay
While Vegas is known for cheap hotel rates, the total costs can add up quickly with resort fees, taxes, and other charges. Here are some creative tips to keep your hotel costs down:
Book Off-Strip Hotels
The pricey resort fees are mostly charged by hotels right on the Las Vegas Strip. By staying at a non-Strip hotel just a mile or two away, you can often avoid these pesky fees entirely and get a lower base room rate too.
Join Players Clubs
Sign up for the free players clubs at casinos you plan to visit. You’ll often get discounted room rates, free parking, and other perks just for being a member. The more you gamble, the better the offers.
Look for Package Deals
Instead of just booking a room, look for package deals that can include your room, flights, meals, shows, and more at a discounted bundled price. You may find it’s cheaper than booking each component separately.
Ask About Promotions
Hotels are always running promotions to fill rooms. When you call to book, simply ask if there are any discounts or special offers you may be eligible for. AAA, student, military, and other memberships can qualify you for room discounts.
Be Flexible on Dates
Hotel rates fluctuate based on demand. By being flexible with your travel dates, you can find the cheapest rates. Weekday and summer dates are typically lowest.
Earn Comps Through Gambling
While gambling can be a quick way to lose money, if you do plan to gamble, be sure to use your players club card. You can earn free rooms, meals, and other amenities through your play.
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