Since the shooting in Las Vegas travel to the area has dropped pretty significantly, the min factor obviously being that many feel it is unsafe immediately following the shooting. Although some companies also have pulled marketing due to the shooting which also would impact their overall sales. MGM expects their sales to decline about 5% in the 4th quarter for 2017, they also argue everything has returned to relatively normal even though airlines are still down 10-20% in overall bookings to Las Vegas. So for airlines the questions is really is when will it go back to normal? What should the airlines do to speed up the progress, personally I would lower prices to fly to Las Vegas and/or offer package offers with casinos that are also being hit by this lack of traffic. Only time will tell how Las Vegas's tourism industry recovers.
https://www.wsj.com/articles/travel-bookings-to-las-vegas-decline-after-shooting-1510356782
This makes me wonder the impact that mass shootings have had on other cities. I know after the Boston marathon bombings, there was a lot of hesitation in the running community to do road races; but turning the race into a memorial type event brought runners back to honor those who were affected. I agree that offering lower prices or package deals to Las Vegas could help get more people to the area again; especially being that Las Vegas runs on tourism. It would be interesting to see what kind of other industries could be affected by this type of tragedy depending on city and the business atmosphere in that area.
ReplyDeleteI think offering package offers with casinos is a great idea. By giving the option of a package deal, the consumer can feel as if they are getting more for their money, as well as possibly decreasing the amount of fear the consumer has about being in the area. Another thing airlines could do is pair up with hotels and target large businesses. The airlines could offer lower prices if a business flies with them, and stays at certain hotels. The hotels could offer deals on not only personal rooms, but conference rooms as well. To go even further, the hotels could offer discounts at the casinos for staying at their hotel. This idea of package deals could really increase the number of bookings for the airlines and increase the attractiveness of Las Vegas.
ReplyDeleteIt's not a surprise that tourism is down in Las Vegas. Although packages with airlines and casinos could help boost tourism . Its possible that its just going to take some time for people to stop being scared for tourism to pick back up.
ReplyDeleteIt is a vivid example that terrorist attack will reduce consumers' confidence and expectation, which results in decrease in consumption to local economy. However, I believe that Las Vegas's tourism industry will recover in a year. Because terrorist attack won't change aggregate demand, it will cause a effect in the short run, but will return to the equiabruml demand in the long run.
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