Numbers tell the story

It’s Thursday, which means a new Green Felt Journal in Vegas Seven. This week I tackle long-range planning, a topic I started thinking about after the euro’s decline two weeks ago:

Tourism is a fraught industry. There’s always something that can keep visitors away—from health scares to economic malaise—out of the control of managers trying to operate resorts. Trying to adjust to meet new challenges can frustrate even the best-prepared Las Vegas executive.

Take, for example, the value of the euro. Since 2003, the dollar has been relatively weak against the euro. This is bad news if you’ve taken a European vacation; your dollars don’t go very far. But for American cities that host European travelers, it’s been a bonanza. Western Europeans have flooded Las Vegas in recent years, spending freely, even when domestic visitation has dropped.

via Many numbers help paint European tourism picture | Vegas Seven.

There is really an amazing amount of forecasting that goes on up and down the Strip. And it’s interesting to be reminded that events far away have very real impacts here in Las Vegas.

Brito’s Gambet

It’s Thursday, which means a new Green Felt Jungle piece in Vegas Seven. This week, I talk about one of the more interesting game inventors I’ve met, Jose Brito:

There’s never any shortage of new table games in Nevada. Right now, there are 557 table games approved for the state’s casinos, though you rarely see more than a dozen or so at any casino. But Jose Brito’s quest to find a niche shows that an Old Vegas attitude doesn’t have to mean more of the same old games.

Brito is a genuine casino old-timer who broke into the business at age 23 dealing blackjack, baccarat and roulette in Havana in the 1950s. The Tropicana Night Club Casino and El Casino at the famous Havana Hilton were excellent training grounds, and Brito learned the nuts and bolts of gambling there.

via Casino old-timer getting back in game with Gambet | Vegas Seven.

Brito has a really interesting story, and his game makes a lot of sense. I hope it gets a shot on the Strip.

UPDATE: I’ve been told that Brito has a few demonstrations scheduled, and is very interested in talking to casino executives about his game. Brito is working with Reggie Burton Communications to market the game to casinos. If you are a gaming executive interested in a demonstration, please contact Reggie Burton at 702-558-9202 or email to RB@reggieburton.com.

Trop tale in Vegas Seven

My latest Green Felt Journal piece is out, in Vegas Seven. I get to name-drop Heraclitus to sound sophisticated before talking about the redo of the Trop:

That’s because the only thing that doesn’t change around this town is change. There are few other places where anyone would even consider spending $150 million to “relaunch” a resort that cost $1.4 billion to build a mere seven years after its opening. But when that happened at the Aladdin/Planet Hollywood in 2007, few were surprised.

A similar change is taking place at the Tropicana, and not a moment too soon. One of the oldest resorts remaining on the Strip (it opened in 1957), the Tropicana, after an increasingly parsimonious corporate stewardship over the past few years, is enjoying a renaissance under the leadership of Alex Yemenidjian, chairman and CEO of Tropicana Las Vegas, and new president Tom McCartney.

The current economy dictates nothing too ambitious—certainly nothing like the 10,000-room mega-expansion previous owners Columbia Sussex mooted back in 2006. With a recent Tropicana financial filing admitting there is an “imbalance” in room inventory, it’s not a question of trying to add capacity, it’s about competing with bargain rates at younger properties.

via Transforming the Tropicana | Vegas Seven.

Interesting to see what’s going on there–and if you’re in town, enjoy the opportunity of seeing the casino in mid-change.

TI talk in Vegas Seven

The latest Vegas Seven is out, and in it I talk a little about Treasure Island, post-MGM Mirage:

Treasure Island sits next to The Mirage, the casino that changed the Strip when it opened in 1989, and across the street from the Venetian/Palazzo and Wynn/Encore megaplexes, representing billions of dollars in casino capital. It’s not part of a national powerhouse such as Harrah’s Entertainment, and it doesn’t have an outpost in Macau. Owner Phil Ruffin is the only beneficiary of last year’s great deconsolidation trend that was supposed to see fire sales dismember the Strip’s big owners. Instead, MGM Mirage sold Ruffin Treasure Island, which today is an island unto itself on the Strip.

The Kansas billionaire bought a unique challenge: making a go of a Strip casino without a large convention center to lure profitable midweek business travelers or a national loyalty program feeder. It’s been more than a year since Ruffin closed on the casino, and what he’s done since then says a great deal about what works in Las Vegas today.

via Treasure Island finds niche with diversity under Ruffin | Vegas Seven.

The casino’s headed in an interesting direction that I think people should take note of. If nothing else, it’s proving that singly-owned casinos can still compete.

Green cuisine at Bellagio

In honor of Earth Day, I gave this week’s Green Felt Jungle an environmental twist:

The casino resorts of the Las Vegas Strip do not spring to mind as environmentally sound institutions. From their blazing marquees to their overflowing buffets, they seem to be studies in excess. With the current mindset conflating any sort of personal indulgence with environmental degradation, casinos seem a lost cause.But many casinos have made great strides in delivering a little slice of decadence to their patrons in ways that use fewer resources and are more cost-effective. If protecting the environment is important to patrons, it stands to reason that they will sooner spend their money at a vacation resort that works to minimize its environmental impact than one that doesn’t.

via Bellagio offers fine example of embracing green, cuisine | Vegas Seven.

Fun story to research. The sheer scale of everything at Bellagio was amazing, and there’s nothing I like more than walking the back of the house to see how everything gets put together. I had another interesting factoid about slot machines that I didn’t use because I couldn’t fit it into the column, but I think it’s interesting anyway. I’ll see if I can find it and append it here later on.

Hitting the jackpot in Clark County

In addition to my regular Green Felt Journal column this week, I’ve got a “Latest Thought” for your perusal in Vegas Seven:

There hasn’t been much written about locals casinos on the scholarly front, so Nedelec, a geographer, shared a conclusion from a chapter in 1999’s The Real Las Vegas: Life Beyond the Strip edited by David Littlejohn, Oxford University Press: “Neighborhood casinos have become the senior centers of choice for thousands of local elderly people. … [Gambling] provides them with … a degree of entertainment and excitement that to them seems worth every quarter they lose, infinitely preferable to the county’s senior centers or staying at home watching TV.”

It was a harsh reminder that, yes, this is the crux of the prevailing scholarly literature about locals casinos: warehouses for drone-like elderly Las Vegans who—even if they insist they don’t gamble more than they can afford to lose and actually enjoy themselves—are getting a bad bargain.

That sent me thinking about the reality: There are tons of public recreation opportunities here. Aren’t there? While Real Las Vegas implies that our county rec centers are comparable to the county lockup, I think we have a far broader range of options than any casino I’ve been to—everything from capoeria classes (a Brazilian art that melds martial arts with dancing) at the Cambridge center to watercolor workshops at Desert Breeze. There’s a cost for most of these, but it’s rarely prohibitive, even to those on fixed incomes.

via Our Community Jackpot | Vegas Seven.

That’s pretty much how the idea started–trying to prove that maybe the social scientists aren’t seeing the whole picture, and that we’re not all really a bunch of drones who have nothing to do.

TR @PH in V7

A week ago today, Planet Hollywood officially became a Total Rewards property. In my latest Vegas Seven column, I talk a little about the behind-the-scenes work that made this possible:P

If you didn’t notice anything unusual at Planet Hollywood recently, don’t feel bad: You weren’t supposed to. But behind the scenes, and occasionally in front of them, a massive operation transformed the property into the eighth Las Vegas casino under Harrah’s Entertainment’s Total Rewards umbrella.

Since its relaunch in 2007, Planet Hollywood has offered players its A-list club, which, like other casino loyalty programs, lets them earn points redeemable for meals, lodging and entertainment with each dollar wagered.

Harrah’s Total Rewards does the same thing on a national scale, letting players bank rewards credits from 35 properties across the United States and Canada. Even before the Planet Hollywood acquisition, Harrah’s has been planning its conversion to the Total Rewards system.

Conversion required more than installing an update patch on a few computers. Technicians had to remove all existing systems, including the core casino management system (which tracks and records play), the lodging management system (which lets the hotel take room reservations) and back-of-the-house systems that track everything from employee hours to ordering and receiving.

via Total Rewards program expands with inclusion of Planet Hollywood | Vegas Seven.

I was able to walk the floor while they were doing the work and talk to many of the people involved in it, and two things struck me: the sheer amount of work involved and the minimal impact it had on customers.

It’s not exactly the Manhattan Project as far as major engineering efforts go, but it’s still pretty impressive.

Madder, leaner, Vegas

Since it’s Thursday, I’ve got a new Green Felt Journal for you to read in Vegas Seven magazine. This week, I talk about March Madness on the Strip:

The basketball-mad crowd covers all ages, from cigar-chomping sharp bettors in their 60s to still-in-school rowdies wearing their college colors. It skews young, however, with 20- to 30-somethings dominating in most casinos. The audience in most sports books is about 97 percent male.

The NCAA Tournament, particularly the first weekend, has become an unofficial cross-country college reunion getaway. Although many fans have moved on from the frat house or dorm television lounge and might live thousands of miles apart, they return to Las Vegas in groups of varying sizes each spring to watch the games, drink beer and enjoy what’s become the ultimate guy trip.

The tournament has become one of the biggest draws in town. While it’s impossible to directly assess its total economic impact (no one fills out a survey saying they came to town for the games), it’s acknowledged as a huge draw.

via March Madness offers peek at leaner Vegas vacation | Vegas Seven.

I used the word “crowd” three times in the story, and might have used it more, because gathering information for this story really brought to mind Charles Mackay’s Extraordinary Popular Delusions and the Madness of Crowds. Not that I’m saying that the guys betting on March Madness are deluded, but it is March “Madness,” and there are big crowds, so I guess my brain filled in the blanks.

And there was something very compelling, but very exhausting, about the atmosphere in the books. I can’t see how anyone has enough energy to do anything but crash for 12 hours, beer and other depressants of choice notwithstanding, after a day of March Madness Vegas action. It must be all the oxygen they pump into the casino.

That last sentence, my friends, is the closest I’m getting to an April Fool’s joke this year.

Shining a light on Aria

In addition to the cover story, my regular Green Felt Journal column in Vegas Seven this week tackles one very specific complaint about Aria’s casino, the lighting:

But the thing most likely to provoke comment from casino-goers about Aria in its first three months hasn’t been Pelli Clarke Pelli’s spacious design or the cutting-edge technology of the guest rooms. It’s that the casino is a bit on the dark side.

Pre-opening press releases hyped the airiness of the building: “Soaring open spaces, ranging from Aria’s three-story lobby to its guest rooms, fill with natural light and evoke breadth and freedom.” It wasn’t surprising that guests expected a casino that looked like an Apple Store lined with slots instead of MacBooks.

That’s not what they got.

“The casino is very nice but very dark,” a visitor from Texas recently wrote on Expedia. Others have been even harsher in their assessment of the lighting. “It’s way too dark, to the point of being forbidding,” commenter Mike P. said on the RateVegas blog.

via Shining a light on Aria—finally | Vegas Seven.

This piece had an interesting evolution. Originally I wanted to borrow a light meter and prove, beyond a shadow of a doubt (pardon the pun), that Aria was much darker than other casinos. Then both Bobby Baldwin and Bill McBeath conceded that the casino was too dark, so it rendered the entire exercise academic.

Still, measuring light levels would be an interesting project, maybe for another time.

And a few months ago when the Mandarin Oriental opened, I referenced the spot in front of the restrooms in the Sky Lobby being as dark as the caverns of Moria. Apparently they just hadn’t screwed in the lightblub in that corridor yet, because when I returned a few days later it was amply lit. So don’t go looking for Durin the Deathless at the MO–you won’t find him there.

Covering Aria

I had such a busy day yesterday that I couldn’t post this. It’s ironic because this article was the culmination of about a month of interviews, analysis, observation, writing, and re-writing. It’s the cover story for the March 25 Vegas Seven, about Aria’s first 100 days:

Aria, the centerpiece of the 67-acre mini city, has drawn the most attention simply because it’s the main place that people want to visit, thanks to its restaurants, bars and casino. The Crystals shopping center is only about half full. The Mandarin Oriental, by design, pursues a mere sliver of the luxury market. And Vdara at this point seems like just another finely appointed nongaming hotel—pleasant enough but nothing to inspire a trip to Las Vegas. Right now, Aria defines CityCenter.

So the question of the moment is, does Aria work?

MGM Mirage executives will tell you the overall project has been an unqualified success. “CityCenter is the single most powerful reason to have hope for a resurgence in our tourist economy,” MGM Mirage chairman and CEO Jim Murren says.

Do the numbers justify this optimism? Most metrics of casino performance aren’t publicly available, but we do know a little bit about Aria: Over its first 15 days of business, it earned $7 million in operating income, or about $466,000 a day. Its successful big sister, Bellagio, by comparison, averaged $430,000 for all of 2009. If projected out for the year, that would make Aria about 8 percent more profitable than Bellagio. But Bellagio only cost $1.6 billion to build. Aria carries the weight of CityCenter, and that’s a $8.5 billion load.

via The First 100 Days | Vegas Seven.

Even before it came out, I wanted to use this blog to talk a little about the process of writing the piece and share a few more thoughts.

I was thrilled to be asked to write the feature story on CityCenter–it’s something I’ve already written on quite a bit and probably the biggest Vegas casino story of the past few years. More importantly, my opinions about the place haven’t calcified into dogma. Each time I go there, I see things I like, things I don’t, and things that don’t make an impression either way. I didn’t have an emotional or intellectual investment in “proving” that CityCenter was a success or a failure, so I started out with a fairly blank slate.

I talked to a lot of people, both at the property and online, about what worked and what didn’t work for them as guests. But with James Reza focusing on the guest experience in his piece, most of that ended up being background. It let me ask very frank questions to the “Big 3″ (Jim Murren, Bobby Baldwin, Bill McBeath), because I had a strong base of customer feedback–not nearly as comprehensive as what they have, but, I think, a representative sampling.

With Baldwin and McBeath, I focused mostly on operational issues–things like cell phones, the light levels, the parking garage, check-in times, etc. I also asked Baldwin some “big picture” questions. I asked Murren exclusively about the big picture stuff, including financing and the role of art in the project. I want to reproduce here Murren’s response to my question, “How has public art helped differentiate CityCenter,” because I think it’s significant, though it ultimately didn’t fit in with the story I was telling in Vegas Seven:

If we can begin a conversation about art, we stimulate dialogue. The world needs more talking, less polarizing. Art is a great way to begin a conversation: it’s neutral ground, something people can all relate to in one way or another. My hope is that the message of the art at CityCenter is that we care about people. There’s also a significant amount of art in the Nevada Cancer Institute (of which Murren’s wife Heather is co-founder), which sends a resounding message to patients and employees that you care about them, that you feel it’s important that they feel stimulated and inspired. There’s clearly a psychological benefit to art. Art has a calming effect, it enlivens people, energizes areas, and creates moments. That’s what the resort community tries to do—create snapshots that you’ll remember for a long time. Hopefully we create a lot of those moments here—that’s how CityCenter will be defined—when people go home after experiencing the art, those are our ambassadors.

Clearly Murren isn’t coming at the business from the angle of a Benny Binion or Jackie Gaughan. But you know what? That’s OK. Binion and Gaughan weren’t coming at the business from the angle of Bill Graham and Jim McKay. There were probably people who thought that Binion was unbelievably pretentious for putting carpet into his Horseshoe (though I doubt anyone said so to his face).

One of the outgrowths of this project was the UNLV Gaming Podcast interview with Bill McBeath. It was a chance to let the broader community see a little bit of what goes into running a casino resort–a lot of hard work.

In summary, I’m grateful to Vegas Seven for giving me the chance to ask questions and write a story that I hope gets people thinking.