Hotel Occupancy Dips 6.5% While Room Rates Slide; Caesars CEO Warns of ‘Soft Summer’
Las Vegas is facing a sharp downturn in tourism, as frustrated visitors point to rising prices and dwindling crowds in what was once one of America’s busiest destinations.
According to the latest data from the Las Vegas Convention and Visitors Authority (LVCVA), just 3.1 million travelers came through the city in June — a steep 11.3% drop compared to the same month last year.
The slump has had a clear impact on the hotel industry. Occupancy is down 6.5%, while the average daily room rate has slipped to $163.64 — a 6.6% decrease from 2024.
Air travel is also taking a hit. Traffic through Harry Reid Airport has declined 4.1% year-to-date compared to the same stretch last year.
On a recent earnings call, Tom Reeg, CEO of Caesars Entertainment, didn’t sugarcoat expectations. He called this season a “soft summer,” according to local media reports.
Visitors on social media are echoing those concerns. One user on X claimed their relatives in Las Vegas observed an eerie lack of activity: “They say casinos are empty … People are being laid off … There is no tourism.”
Another X user posted a photo showing rows of vacant slot machines with the caption, “Las Vegas is dead, bro.”
Back in April, Fox News Digital reported that three lawsuits had been filed against a pair of resorts along the Las Vegas Strip. The legal action stemmed from separate incidents during the summer of 2024.
The cases are being handled by attorney Brian Virag, founder and CEO of My Bed Bug Lawyer. Speaking to Fox News Digital, he said, “We wanted to not only make sure to represent them, but also to bring awareness that bedbugs in Las Vegas hotels are a real problem.”
Online forums have also become a sounding board for unhappy tourists. On the r/lasvegas subreddit, users are voicing concerns over pricing and economic uncertainty.
“While the economy is going downhill, the strip nickel and diming folks [sic] is gonna result in this, and it’s gonna get worse,” one Redditor wrote.
Another added, “Slow season in Vegas, no people, no conferences in summer, and it’s hot.”
One user pointed to last June’s packed calendar — including the NHL Awards and the NHL Draft — as a reason why last year’s numbers may have been stronger. “I went to both and met a ton of people and none of them were from Vegas, so that would account for a lot of tourism during that time.”
But others were more pessimistic, with one post bluntly declaring, “Vegas will never recover.”
Travel adviser and supervisor Mallory Dumond of Travelmation told Fox News Digital that the cost of a Vegas trip has noticeably surged over the past year.
“Despite the high price tags, with proper planning, you can still ensure value, comfort and memorable moments if you’re thinking of visiting Vegas,” Dumond explained.
She offered several strategies for budget-conscious travelers hoping to enjoy the city without overspending.
“Opt for a Sunday through Thursday stay if your schedule will allow. Often, you can find 5-star rooms at half the weekend rate! Same suite, same view, smarter timing,” she said.
Dumond also recommended dining out at upscale restaurants during lunch instead of dinner to save money, and to look out for tasting menus or happy hour deals.
“For those who don’t want to stomach the bloated costs in Las Vegas, I encourage clients to consider Atlantic City, New Jersey, for a more affordable casino-and-beach alternative with major resort brands and entertainment,” she suggested.
For travelers interested in a different vibe altogether, Dumond pointed to Napa Valley, California, which she described as ideal for a “laid-back, elevated vacation experience with delicious wine and Michelin-star dining.”
And for those seeking luxury on a budget, she recommended looking abroad.
“If your top priority is a high-end luxury resort, check out Cabo San Lucas, Mexico, for ocean-front extravagance, spas, yacht charters and 5-star all-inclusives that offer a better value than Vegas,” Dumond said.
