Casinos want customers. That's why back in the day many of them used tricks like $1.99 shrimp cocktail and other preposterously cheap food to get people in the door.
Smaller operators on the Las Vegas Strip may not use that exact tactic, but anyone walking by the soon-to-close Casino Royale on the Strip between multiple Caesars Entertainment (CZR) -) properties has heard the offer of free play offered to any new players walking by.
All the casinos also have loyalty programs designed to pull people into their casinos and keep them there. Caesars, MGM Resorts International (MGM) -), Wynn Resorts, (WYNN) -) and any other resort casino operator offer everything from waived resort fees to free rooms. meals, and show tickets to members who have shown that they will gamble enough to be worth luring into their properties.
Until recently casinos — even the big ones on the Las Vegas Strip — offered free parking. That seemed like the least the companies could do for people who almost certainly were heading to their resort casinos to gamble, eat, see a show, or some combination of the three.
That perk, however, has largely gone away; most Las Vegas Strip resort casinos are charging for parking. In most cases, higher-level loyalty program members will see their parking fees waived, but everyone else (including hotel guests through resort fees) pays to park.
Most resort casinos charge fees similar to an overnight at a midsize airport, usually $20 to $30 a night. But the Sphere (SPHR) -), a new convert venue, has pushed parking prices to an astoundingly high level as it kicks off its first artist residency with U2 as the headliner.
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Image source: MSG Sphere Las Vegas
Las Vegas Sphere sets parking rate record
Seeing U2 at the 17,500 seat Sphere won't be cheap even before you factor in extras like parking.
Regular ticket prices ranged from $287 to $600, and the cheapest seats offered for the Oct. 11 show on ticket reseller StubHub came in at $432. SeatGeek, a similar site, had tickets for Oct. 11 at $367, but that was the only night during the band's entire run with seats under $400.
Once you pay for a seat, however, that's only the start. If you drive to the show, parking will set you back another hefty sum.
"Self-parking on site will be $100, while valet parking will cost $125. This sets a new record for Las Vegas parking, which up until seven years ago was free everywhere on the Strip that a concert was ever staged," Casino.org reported.
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The Sphere has only about 300 parking spaces, so most cars will be forced to park at nearby casinos. That likely contributed to both the adjacent Venetian/Palazzo and Wynn/Encore properties adding parking charges for people not staying at their resorts.
Sphere's construction ran way over budget
Sphere will have to sell a lot of expensive parking spaces to make up for the roughly $1 billion in cost overruns the project ran up.
Those costs forced layoffs at former parent Madison Square Garden Entertainment (MSGE) -) and contributed to the company selling a majority interest in Tao Group Hospitality.
It has been a rocky road for the project, but Sphere Entertainment Chief Executive James Dolan, who also runs Madison Square Garden Entertainment, says the venue will prove to be worth the cost. He spoke about it during Sphere's fourth-quarter-earnings call.
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"In summary, Sphere is brand new, never before seen medium, and we believe it will take the world by storm," he said.
"We are excited for next month's opening in Las Vegas of what we hope is the first of many Spheres. You should not expect the venue to reach its full economic potential right from the start, but we're confident that we will get there over time as guests, artists, advertisers, and sponsors experience Sphere and all of its unique capabilities."
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