Discounting temporarily stimulates sales by attracting price-conscious consumers to try your product

They experienced record home foreclosures, cheap bus journeys tickets in to london where entire neighborhoods sat vacant for months. Unemployment rates are still among the highest in the nation. And the state s main source of taxation tourism and gambling was at an all-time low.
The billion dollar casinos that line the Las Vegas Strip were all struggling to survive. Cash flows were barely positive, because there simply wasn t enough demand for their hotel rooms, shows, restaurants, and casinos.
Every hotel started slashing prices and offering discounts to fill as many rooms as possible. Many operators believed as long as they could get people in the door, they would make up for it in restaurants, casinos, and show tickets.
Discounting temporarily stimulates sales by attracting price-conscious consumers to try your product (who otherwise wouldn t have spent the money), and encourages cheap bus journeys tickets in to london others who know a bargain when they see it.
Because price conscious people aren t loyal to you or your business they re only loyal to the lowest price. So if you can t give it to them the next time around, then they ll move on to the next competitor.
Not only that, but hotel companies with low margins usually avoid CAPEX (capital expenditures). cheap bus journeys tickets in to london These are reinvestments of capital back into the property to improve their product and stay competitive.
Wynn Las Vegas renovates their rooms every 5 years no exceptions. And they re constantly making substantial improvements to the property to better position it for today s economy and consumer preferences. There s a reason that their hotel and rooms are the among the best in Las Vegas.