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Why are Hotels so Cheap in Vegas? Check Out What We Found!

By: Swena Kalra

Edited By: Scott Sidders

Updated on November 6, 2023

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It's no secret that Las Vegas is one of the most popular tourist destinations in the world. Every year, millions of people flock to the city in search of fun, excitement, and of course, cheap hotels. A quick search online will reveal hundreds of hotels to choose from in Vegas, many of which are affordable. But this might leave you wondering- why are hotels so cheap in Vegas?


There are a few reasons for this. Here are a few of the most common:

1. Competition is Fierce

Las Vegas Skyline

With so many hotels vying for attention, prices are kept low to attract guests. This competitive environment also encourages hotels to offer more amenities and better service to stand out from the crowd. Guests can be picky when there are so many choices, and they will often choose the hotel that offers the best value. As a result, visitors to Vegas can enjoy luxurious accommodations at a fraction of the cost of other major cities.

2. Many Hotels Offer Package Deals

Las Vegas Pool Party

One of the most significant factors is that many hotels offer package deals that include everything from room rates to meals and entertainment. This enables visitors to save a considerable amount of money, mainly if they stay for an extended period. Additionally, many of the hotels in Vegas are located close to one another, which makes it easy to compare prices and find the best deals. You can also find great hotel deals by checking online travel websites or calling the hotel directly.

3. Main Source of Revenue: Gambling

MGM Grand hotel casino in Las Vegas at night.

Although hotels in Las Vegas are notoriously cheap, many people don't realize that the main reason for this is gambling. Hotels rely on casino revenue to compensate for the low room rates, and this symbiotic relationship benefits both sides. Casinos need hotel guests to keep the gambling floor busy, and hotels need gamblers to help boost their bottom line. This is one of the reasons you'll find that many of the best hotels in Vegas are located on or near the strip. In addition, many hotels offer complimentary or reduced-rate gambling to guests as an incentive to stay at their property. As a result, visitors to Las Vegas can often find some fantastic deals on accommodations.

4. Add-On Services

Assortment Of Small Liquor Bottles In Hotel Room.

Vegas is known for its cheap hotels, but most visitors don't realize that the costs of add-on services often offset the low room rates. From resort fees to minibar charges, there are myriad ways that hotels can increase their profits. However, these fees are often buried in the fine print, surprising many visitors with the final bill. Add-on fees are just one of the many ways hotels generate revenue, and they can be a significant source of income for properties.

Some estimates suggest that add-on fees account for nearly 10% of a hotel's total revenue. With such a high reliance on these fees, it's no wonder that hotels are constantly looking for new ways to add them to guests' bills. The next time you book a room in Vegas, pay close attention to the list of add-on services before you agree to anything. Chances are, you'll save yourself a lot of money in the long run.

5. Location

Las Vegas City Sunset

The location of a hotel can also affect its price. Hotels located further away from the strip or other popular attractions are often cheaper than their counterparts. However, these hotels may not offer the same service or amenities, so weighing all your options before booking is essential. Additionally, many of the cheaper hotels in Vegas are located in less desirable areas, so be sure to research the neighborhood before you book. With a little effort, you can find a great hotel at an affordable price.

6. Seasonality

 Las Vegas, Nevada with Palm trees in the foreground.

Vegas is in the desert, so the weather can be scorching during summer. As a result, many visitors choose to come during the cooler winter months. This increased demand leads to higher room rates, so if you're looking for a bargain, it's best to visit during the off-season. In addition, many hotels offer special deals and discounts during the summer, so if you're flexible with your travel dates, you may be able to find a great deal. This is especially true for last-minute bookings. You can find great deals on Vegas hotels by being mindful of the season.

How to Get the Best Hotel Deals in Vegas?

 Las Vegas Strip at Sunset.

While there's no definitive answer to this question, there are a few things you can do to increase your chances of getting a great deal. Here are a few tips to keep in mind:

1. Compare prices

The best way to find a great deal on a hotel room is to compare prices from multiple sources. Several online travel websites allow you to compare prices and find the best deals. You can often find good deals by calling the hotel directly and speaking with a representative.

2. Be Flexible

If you're flexible with your travel dates, you'll have a better chance of finding a great deal. Many hotels offer discounts for bookings made at the last minute. You can also often find good deals by booking your room during off-peak times, such as the summer months.

3. Look for Promotions

Many hotels offer special promotions and discounts, so it's always a good idea to ask about any current deals. You can often find promotions by visiting the hotel's website or calling the reservations desk.

4. Join a Loyalty Program

If you stay in hotels frequently, it may be worth your while to join a loyalty program. These programs often offer exclusive deals and perks to members, such as free nights and upgrades.

5. Use a Travel Agent

If you're having trouble finding a good deal on your own, you may want to consider using a travel agent. Travel agents have access to special rates and can often find discounts unavailable to the general public.

The bottom line is that hotels in Vegas are cheap because they have to be. With so much competition, hotels need to offer low room rates to attract guests. However, they must also generate revenue from other sources, such as add-on fees and package deals. Understanding how hotels operate can save you a lot of money when booking your next trip. So, the next time you're looking for a bargain, keep these tips in mind. You may be surprised at how much you can save. If you're looking to maximize your experience in Vegas, check out our article dedicated to things to do in Las Vegas.

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