The Impact of Special Events, Conventions, and Entertainment Interfacing with the Hospitality and Casino Industry

Organizations Can Benefit from Hotels and Casinos

Organizations can either directly or indirectly benefit from hotels and casinos both in the short- and long-term. The operability of the two industries depends on the inflow of people. There has been tremendous growth in thematic tourism, especially in the 21st century (Bulatović et al.). People travel based on certain conditions or special interests. Casino industry can be described as a thematic tourism. For example, the tourists are inspired by their desire to gain experience and entertainment purposes. Globally, the casino industry is valued at around $450 billion United States Dollars (Bulatović et al.). Macau and Las Vegas are the most recognized destinations for casino tourism. The hospitality and casino industry is driven by activities such as special events, conventions, and entertainment. Thus, there is need to examine the interface between the activities and the industry, particularly in Las Vegas, Nevada.

Hospitality and Casino Industry in Nevada

Hospitality and Casino industry are the primary drivers of Nevada's economy. Companies that operate in the two industries can be divided into two broad groups. There are those that operate firmly in the hospitality while others on casino or gaming market. The hospitality industry is centered on ensuring that there is a full occupancy of their facilities through efforts such as appealing to clients across most demographics (Suh 1). For instance, in Las Vegas, there are upscale, middle-level, and economic properties. Room bookings are considered to be the primary earnings or revenues for the hospitality industry. However, they may generate other revenues from actions such as franchise agreements, management contracts, and vacation ownership (Bulatović et al.). Alternatively, enterprises in the casino industry have resorts that provide services such as retail space, gambling, entertainment, meeting and convention facilities, dining, and rooms. The diversification of the offerings ensure that the casino industry can maintain their hotel occupancy. It should be noted that people may visit Las Vegas on either hospitality or casino needs. Organizations have to strike a balance between the two sectors as means of staying afloat in the market. Casino industry often provides entertainment and special events due to the assumption that they are sources of additional revenues that can be used to offset losses in the organization. Studies show that the non-gaming revenues have exceeded the gaming revenues, especially in Las Vegas (Suh 4). The trend can be attributed to the increase in the provision of activities such as entertainment, special events, and conventions.

The Casino Industry in the United States

The casino industry is one of the principal revenue generators in the United States (U.S.) entertainment sector. Las Vegas's casino industry provides amenities such as games, tables, and slots (Bulatović et al.). Some of the games offered include blackjack, roulette, keno, bingo, baccarat, and racebook among others. Tables include gin, pan, and poker. The special events, entertainment, and conventions have a positive impact on the casino and hospitality industry. Las Vegas is commonly known for its hotels which include MGM Grand, Luxor, First World, Flamingo, Venetian, and Paris among others (Woo 85). According to the Las Vegas Conventions and Visitor's Authority (LVCVA), there are over 150,000 rooms in the region (McCallister 19). The ever-growing number of hotel rooms can be attributed to the need to take into consideration the entertainment and special events. It is evident that the hospitality and casino industries have to operate simultaneously if they are to meet the demands of the market. The revenues generated from the rooms are significant to the growth of the hospitality industry in Las Vegas (Woo 80). The room revenues have tremendously grown due to the changes in consumers' tastes and preferences. The hospitality industry provides a platform for special events, entertainment, and conventions such as lounge acts, headliners, comedy revues, celebrity DJs, and Broadway shows among others. The casino resorts seek to establish hospitality firms that turn the regular guest visit into lasting memories and broad loyalty (Woo 86). As a result, the owners of the hospitality industry have substantially invested in creating an experience that could put Las Vegas on the world map.

Entertainment in Las Vegas

Las Vegas offers multiple options for entertainment which comprise of shows, museums, pool parties, and nightlife among others. The impact of entertainment on the casino and hospitality industry is visible based on the revenue trends from the organizations in the area (Bulatović et al.). In the past, Las Vegas thrived exclusively on gamblers. However, the changing societal and legal aspects provided an avenue where organizations exploited the need to extend their operations beyond gaming. During the period, a significant percentage of hotels had bars, showrooms, and lounges that entertained guests. However, in 1995, Club Rio built the first large-scale nightclub (McCallister 22). At first, the construction of nightclubs as a form of entertainment was perceived as an unwelcome distraction. The success of nightclubs forced hotel operators to reconsider their view. Las Vegas has 22 of the top 100 nightclubs in the U.S. Cosmopolitan Marquee is one of the highest earning nightclubs in the region with an average revenue of $70 million in 2011 (McCallister 21). The growing number of the non-gaming activities in the casino industry can be assumed that the customers have different needs and want in the market (Suh 1). For example, clients might have their meals at a restaurant operated by a casino before attending a show at the same place. Entertainment can produce the much-needed spillover effect or traffic to other sectors or departments of the casino or hospitality industry. Cirque Du Soleil is one of the best-headlining shows in Las Vegas with the average revenue that exceeds one billion dollars annually (McCallister 24). Therefore, entertainment has had a positive impact on the casino and hospitality industry in Las Vegas.

Conventions in the Industry

The focus on conventions and meetings started in the 1950s. The slower periods of the week imply that there was a generation of low revenue from gambling ventures in the industry. Conventions were seen as a necessary addition to the operations due to the ability to attract large groups that supplemented the occupancy in the hospitality industry (Bulatović et al.). The idea of the convention was perceived as irrelevant in the industry. However, the impact of the convention grew steadily in the late 20th century as portrayed by the establishment of facilities to accommodate them (Woo 82). From LVCVA reports, "nearly five million of the 40 million annual visitors being convention delegates and over 19,000 conventions landing in Las Vegas" (McCallister 26). The hyper-competitive market requires the casino and hospitality industry to retain the convention business. Therefore, conventions play an integral role in the industry such as attracting customers and spillover effects.

Conclusion

From the analysis, it is clear that the convention, special events, and entertainment have a positive impact on the hospitality and casino industry. Organizations can improve their revenues, customer loyalty, and competitive advantage based on an adequate understanding of the relationship between the events and the industry.

Works cited

Bulatović, Iva, et al. "Casino Business in the Context of Tourism Development (Case: Montenegro)." Social Sciences6.4 (2017): 146.

McCallister, Eden. "The Shifting of the Las Vegas Tourism Industry: A Historical Perspective on Management and Resort Revenues." (2012).

Suh, Eunju. "Estimating the Impact of Entertainment on Restaurant Revenues of a Las Vegas Hotel Casino." International CHRIE Conference-Refereed Track. 2009.

Woo, Kyung Jin. "Strategy and Competitive Advantage of Las Vegas Hotels." International Journal of Tourism Sciences 7.1 (2007): 79-93.