Will LVCC’s Rate Reducer Rescue Vegas Casinos?

Once thought impervious to economic downturn, the Las Vegas gaming and hospitality industry is now finding itself forced to offer some very attractive deals to get customers to come stay and play.

For example, a recent LA Times article points out that, one of my favorite places to stay in Vegas, the MGM Grand, is now offering $300 maximum fly-back vouchers to guests in effort to get them to come back again soon. As gas prices and airfares continue to soar, this old, but attractive marketing scheme is seeing a resurgence. But how much is it costing the city’s already struggling resort/casinos?

As I’ve mentioned in previous editions, organizations including Las Vegas Sands Corp. (NYSE: LVS) continue to struggle as the number of conventions and overall visitors dips thanks to a struggling U.S. economy. This dynamic gives birth to a situation in which many leading Casinos are struggling to fill rooms. Smith Travel reported that June hotel occupancy fell 4.8 percent in Las Vegas, as avg. daily room rates rose from $101.81 to $104.99.

One company I’ve come across recently that is equipped with solutions capable of filling the gap at Vegas casinos left by a battered economy is Las Vegas Reservations Corp. (OTCPK:LVCC). A few years into its existence the company’s key competitive differentiator is quite intriguing, their patented “rate reducer” technology allows the consumer to book travel and then have their account credited if the room rate drops between the time of purchase and scheduled arrival.

I actually called on a number of leading Vegas reservation companies and inquired about their policies for crediting the accounts of customers in the instance that room rates drop subsequent to their purchase. I was laughed off of the phone on most occasions. Furthermore, I’ve been in discussions with management at LVCC in effort to stir something up with the company in regards to a future IR contract. Who knows? In any event, one of my favorite tourist destinations is looking for new ideas to remain profitable and the boys at LVCC appear to have one.