LAS VEGAS (KLAS) — After months of skyrocketing hotel rates, things seem to be coming back down slightly for November’s Formula One race weekend on the Las Vegas Strip.
“It’s going to be good for the economy,” Stiato Agorastos, a Las Vegas local told 8 News Now.
Preparations are of course kicking into high gear, but some have noticed other big changes this week, namely a huge drop in hotel prices for F1 weekend.
“We are seeing that equilibrium in the markets,” John Netto, an expert in the release of economic data, said. “That is very healthy.”
Room rates at prime, mid-strip properties for November 16 through 19 more than tripled when they were first published last fall.
Since then, however, they have been reported to be cut in half. The prices are still much higher than normal, but Netto told 8 News Now this tactic commonly called “anchoring,” makes it feel like a bargain.
“People feel like they are getting a deal because they have emotionally tethered themselves to this price point,” Netto explained. “Yet, while doing that, they are still paying seven to ten times the normal amount.”
He told 8 News Now it also gives those with a little less money to spend better opportunities.
“They’ll have some pricing for people,” tourist John Milovich said. “Who aren’t as fortunate to be staying at Bellagio and Caesars.”
People who spoke with 8 News Now on the Las Vegas Strip Friday said this adjustment makes them even more excited for what’s to come.
“Las Vegas is a magnet for everybody,” Milovich concluded.
Netto said he expects hotel prices to possibly fluctuate even more in the coming weeks.
8 News Now also asked him about Formula One prices for 2024, and he said he thinks they will remain steadier overall.