Why the price of a room in Las Vegas during the F1 Grand Prix is so high? 💎
The Formula 1 Heineken Silver Las Vegas Grand Prix 2023 (Sunday 19 Nov), returning after 40 years, is set to significantly impact the city's economy. With an estimated $1.3 billion local economic boost, this event is surpassing previous estimations
There's no doubt that the hotels will fill up very well and the average rocket price will rise. But the displacement costs also need to be factored in.
What is a displacement cost? It's the cost of emptying and refilling the hotel at a conventional rate. And these revenue losses have to compensated.
By restricting the length of stay to the dates of the event, the hotel will find itself emptying out before the Grand Prix and then filling up after the race, as early as the Saturday night of November 19.
Never easy for a revenue manager. And this has to be factored into the price of the 3-night Grand Prix stay. That's why the package price is so high (among other marketing and communication variables for sure 😉).
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