The arrival of major league sports in Las Vegas, beginning with the debut season of the Vegas Golden Knights hockey team this fall (and potentially the Raiders football team in two years), will have a seismic impact on how locals and visitors spend discretionary entertainment dollars. Resorts, venues, producers, marketers and media need to capitalize on the opportunities this presents, and have the long-term strategic vision to overcome the challenges.
The opportunities
• Fans of visiting teams will broaden our audience of potential visitors well beyond traditional feeder markets.
• 35 percent of convention attendees bring someone with them who’s not attending. The same could hold true for sports tourists, increasing the potential audience for shows and other entertainment.
• Sporting events will provide new marketing opportunities for shows, food and beverage, etc., via on-site signage, event programs, digital displays, sponsorships, and more.
The challenges
• We have about 150 show performances and 100,000-plus ticketed seats available on an average night. Only 72,000 of our 118,000 daily visitors see any show during their visit, so we already have more seats available than visitors to fill them. The option of professional sports dilutes that number further.
• T-Mobile Arena and Park Theater recently added 25,000 potential seats to the city. An NFL team would add tens of thousands more, increasing occupancy and pricing pressure on local venues.
• Hotel room inventory hasn’t changed meaningfully since CityCenter opened nearly a decade ago, while visitor numbers continue to grow. Room scarcity would drive up average daily rates (good!) but means we might not be able to accommodate everyone who wants to visit (bad!), especially when sports overlap with our largest events, such as CES or Electric Daisy Carnival.
What does all this mean for us?
Resorts, producers, venues: You must consider your entertainment offerings more strategically than ever. More than two dozen Las Vegas shows closed last year, even without competition from major league sports. Some ran their course; some were the wrong show in the wrong room; several weren’t given the time to find their audience. Do the research to make sure there’s sufficient market/demand for your show, in the room and at the frequency you want to present it. Fund a budget with adequate marketing resources to allow your show months of slow sales as it develops its audience.
Marketers: Travel intenders are inundated with online ads for resorts, restaurants and shows from the moment they start planning their trips. The ads increase exponentially once visitors arrive (baggage claim, taxis and your Facebook feed, anyone?). We need to work with ad vendors to develop new ad placements and to ensure our messages stand out among the cacophony while efficiently reaching the best potential customers to drive ticket sales.
The addition of major league sports is a huge step in our continuing evolution as a multidimensional resort destination. As with previous tectonic shifts in our market, we’ll adapt and innovate to accommodate it. It’s a fantastic, exciting time for Las Vegas.
Arlene Wszalek is vice president of strategic marketing at Allied Integrated Marketing/87AM, and heads its Las Vegas office.