Conventions and medium sized trade shows are the best answer to Atlantic City’s 200 mid-week nights in the Fall, Winter and Spring, when AC can’t even give rooms away.
Just looking at the Boardwalk casino resort occupancy and average rates in 2015 (77% and $92) and compare them to the 23 larger Las Vegas Strip properties (92% and $163); and then consider that less than 35% of the Strip revenues comes from gaming and 73% of their departmental profits come from non casino operations.
It is obvious that mid-week overnight demand, creating meaningful room profits, is one answer to Atlantic City’s declining casino win.
AC still rely’s on the casino for 70% of its revenues, but comps over 50% of its room, food and beverage revenues, and discounts mid-week off season room rates by 80% to 90%, harming non casino properties that can’t afford that kind of discounting. Congratulations to those properties, Harrah’s, Claridge and my old home Resorts for adding convention space and facilities.
I expect with MGM now a leader in AC, they will provide a leadership role and embrace the group trades.
Back in the 1980’s when I served as Chairman of the ACCVB, our casinos didn’t want City wide events, just groups they could keep in house. Hopefully that attitude has now changed.
Steve Norton