Park MGM is one of the most affordable hotels on the Las Vegas Strip. While other hotels in the area charge upwards of $300 per night, rates at Park MGM often start around $100.
There are several reasons why this MGM Resorts property offers such low prices compared to its neighbors.
Reasons For Park MGM Hotel Being So Cheap
Here is a list of those resons:
- Lack of Gaming Revenue
- Minimal Onsite Amenities
- Smaller Property Size
- Minimal Free Parking
- Location Away from Central Strip
- Shared Facilities with NoMad Hotel
- Caters to Younger Budget-Conscious Travelers
- Minimal Resort Fee
Let’s talk about these reasons in detail.
- Lack of Gaming Revenue
One of the biggest factors contributing to Park MGM’s cheap rates is its small casino.
With just under 1,400 slots and table games, the casino at Park MGM is dwarfed by gaming floors at nearby resorts like Bellagio, Caesars Palace, and MGM Grand.
These larger casinos generate significant revenue from gambling which helps subsidize room rates.
Since Park MGM’s casino brings in far less money, the hotel relies more heavily on room revenue. This forces Park MGM to keep nightly rates low to drive occupancy.
- Minimal Onsite Amenities
In contrast to other Vegas megaresorts, Park MGM offers few amenities to guests beyond the basics like a swimming pool, fitness center, and couple of restaurants. There are no lavish spas, theaters, nightclubs, or attractions.
This lack of amenities allows Park MGM to operate with lower service costs.
Without as many overhead expenses, Park MGM can afford to offer cheaper rates. Guests pay less because they are getting a more bare-bones experience compared to other Strip hotels.
- Smaller Property Size
With just under 3,000 rooms, Park MGM is one of the smaller hotels on the Las Vegas Strip. Large resorts like Mandalay Bay, Caesars Palace and the Venetian have thousands more rooms, meaning they also have higher fixed costs to operate and maintain such enormous properties.
The economy of scale allows these megaresorts to spread operations expenses across more rooms. Since Park MGM has a fraction of the rooms, its fixed costs per room are higher. Lower room rates help generate the occupancy needed to cover those fixed costs.
- Minimal Free Parking
Most major Las Vegas hotels offer abundant free parking for guests. But due to its small footprint, Park MGM only provides valet parking for a daily fee.
The lack of free parking helps keep expenses down. Competition with larger resorts that provide free parking also puts pressure on Park MGM to offer cheaper room rates. This makes up for the inconvenience of paid parking.
- Location Away from Central Strip
Park MGM is situated on the far southern end of the Strip. This places it away from the central cluster of hotels and the Las Vegas Boulevard action. Nearby competitors like Aria and Bellagio command higher rates based on superior locations in the heart of the Strip. The out-of-the-way site makes Park MGM less desirable, so lower pricing is used to attract guests.
- Shared Facilities with NoMad Hotel
Some amenities at Park MGM like the pool, casino, and restaurants are shared with the NoMad Las Vegas hotel housed within.
This essentially gives two hotels access to one set of amenities and facilities.
Cost savings from this arrangement allow both Park MGM and NoMad to maintain cheaper pricing than if they operated as fully independent resorts.
- Caters to Younger Budget-Conscious Travelers
With its lively bars, hip restaurants, and modern vibe, Park MGM aims to appeal to younger guests looking for a fun Vegas trip on a budget. This demographic is generally more price sensitive when selecting hotels.
To be competitive in this market, Park MGM needs to offer cheaper rates than other Vegas hotels catering to an older, wealthier crowd. The affordability attracts budget-minded millennials and Gen Z travelers.
- Minimal Resort Fee
The mandatory nightly resort fee charged at Park MGM is $20 before tax. That’s on the very low end for Las Vegas hotels. Nearby competitors like Bellagio and Caesars Palace have resort fees around $45-50 per night.
The substantially lower resort fee at Park MGM helps attract bargain hunters who want to minimize hidden costs. When combined with already cheap room rates, the minimal resort fee enhances Park MGM’s value reputation.
- Caters to Locals
Park MGM attracts a strong contingent of local Las Vegas residents through its low prices. Locals are less likely to pay the high rates that tourists do when visiting Vegas.
By catering to locals with affordable pricing, Park MGM can drive occupancy on weeknights when convention and tourist travel is slower. The locals market complements the out-of-town guests and helps fill rooms on off-peak dates.
- Lacks a Big Name or Legacy Brand
Unlike famous Las Vegas hotels like Bellagio, Caesars, and The Venetian, the “Park MGM” name does not have the same national or international recognition. It does not evoke the prestige and luxury of other Strip resorts.
This makes Park MGM less able to command premium pricing based on branding alone. Until it establishes its reputation over time, low rates are needed to get people in the door.
- Newer Hotel Seeking Market Share
As one of the newest hotels on the Strip having opened in 2018, Park MGM is still building brand awareness and establishing its share of visitors to Las Vegas. Offering cheap pricing helps introduce Park MGM to potential new guests checking out the Strip’s latest resort.
As the hotel matures over the coming years, rates may rise but for now low prices drive occupancy for the relatively unknown property.
- Midweek Slow Season Discounts
Las Vegas hotels including Park MGM adjust prices based on demand. Weekends are busier so prices go up Friday-Sunday.
Monday through Thursday tend to be slower, so Park MGM (and other hotels) will drop rates during midweek to attract guests and fill rooms during these off-peak times. The tiered pricing based on demand allows the flexibility to offer really cheap midweek deals.
- Harrah’s Las Vegas Neighbor
Being sandwiched between Harrah’s and NYNY puts Park MGM right next door to one of the most affordable hotels on the Strip. As an older property with a small casino, Harrah’s also offers really low rates to drive occupancy.
To be competitive, Park MGM dropped prices to match (or even beat) the rates offered by its budget-friendly neighbor. Location proximity creates direct price competition between the two hotels.
- Targets Players Club Members
Like most MGM Resorts hotels, Park MGM caters to members of the MGM Rewards players club program. Loyal MGM players receive discounts, free rooms, resort credits and other perks to incentivize their patronage within the MGM family of hotels.
Park MGM uses low base rates combined with players club promotions to make the property attractive to these regular MGM guests looking for deals.
- Maximizes Food & Beverage Revenue
Aside from hotel rooms, much of Park MGM’s profit comes from restaurants, bars and nightlife like the popular Moneyline Sports Bar & Book.
Keeping room rates cheap encourages more guests to dine, drink and party onsite, boosting revenue in these high-margin outlets. So the low room prices ultimately support Park MGM’s strategy to drive traffic to its food and beverage venues.
- Competitive Pressure from New Virgin Hotel
The new Virgin Hotels Las Vegas which opened in early 2022 sits directly across from Park MGM. As another fresh, modern hotel catering to a youthful crowd, Virgin is direct competition targeting the same demographic.
To prevent losing market share to the new Virgin, Park MGM has aggressively kept its pricing extremely competitive. This minimizes the incentive for its target guests to try the new alternative.
- Minimal Complimentary Hotel Services
Most larger Las Vegas hotels provide guests with a long list of free services like airport shuttles, fitness classes, newspapers, WiFi, and more. But Park MGM takes an à la carte approach and charges for many services that competitors include at no added cost.
This reduces operating expenses and allows Park MGM to keep room prices lower. The trade-off is guests pay more out of pocket for services during their stay if they want added amenities.
- Caters Heavily to FIT Travelers
Park MGM draws a significant number of “free independent travelers” (FITs) versus groups or conference attendees. FITs are leisure travelers not part of an organized group. They often book room-only discounts online at the last minute.
Since it’s harder to predict FIT demand patterns, having a low base rate assists in driving bookings from this segment. Park MGM essentially sacrifices some profit per guest for higher overall FIT occupancy.
- Lower Employee Wages
Some cost savings at Park MGM comes from lower wages paid to staff compared to union wages at other Strip casinos. The lower overall payroll expenses contribute to Park MGM’s ability to profitably operate with cheaper room rates.
Employees make less compared to counterparts at other MGM resorts or unionized hotels on the Strip.
Also Read: This Is Why SAS Airlines Is So Affordable.
- Caters to Drive-In Visitors
Las Vegas residents comprise a major portion of Park MGM’s occupancy. Locals can easily drive to the hotel for a quick overnight getaway or weekend on the Strip without dealing with major airports.
The convenience and proximity for drive-in guests means Park MGM can offer lower rates compared to hotels catering primarily to vacationers flying in. They need to cover higher airfare costs.
- Lack of Major Conference & Meeting Spaces
Groups and meetings make up a relatively small portion of business at Park MGM due to its limited conference facilities. Nearby hotels with huge convention and meeting spaces can generate major revenue from large corporate events.
Since Park MGM does not attract this premium-paying segment in significant numbers, the hotel relies more on discount room rates to fill the property.
- Optional Resort Fee for Players Club Members
One unique strategy Park MGM uses to attract budget-minded travelers is waiving the daily resort fee for MGM Rewards loyalty members booked directly through MGM.
This makes the true nightly cost even lower compared to hotels with mandatory resort fees. Between the discounted room rate and no resort fee, total savings can be substantial for members.
- Uses Dynamic Pricing Algorithms
Park MGM heavily utilizes sophisticated revenue management software to adjust room prices frequently based on projected demand. This dynamic pricing aims to maximize revenue by identifying the optimal rate to sell each remaining room at for every date.
The algorithms yield cheap rates when demand is slow and higher prices when demand is high. Variable pricing allows Park MGM to strategically offer deals to stimulate bookings during need periods.
Also Read: Reasons For Rio Hotel Being So Cheap.
Frequently Asked Questions (FAQ)
Yes, Park MGM is an excellent choice if you want a nice and affordable hotel right on the Las Vegas Strip. It has recently renovated rooms, good restaurants, and a fun vibe while being much cheaper than many other Strip hotels. The value makes it a prime option for budget-minded travelers.
The main differences are that MGM Grand is a huge hotel with 5,000 rooms, an enormous casino, tons of amenities, free parking, and rates starting around $150 per night. Park MGM is smaller at under 3,000 rooms, has a small casino, minimal amenities, paid parking, and rates from $100 per night. MGM Grand is one of the biggest Vegas megaresorts while Park MGM is a more casual boutique hotel.
MGM Grand isn’t really considered cheap for Las Vegas Strip standards. Its rates typically start around $150 which is on the more affordable side compared to luxury hotels like Bellagio that are $300+ per night. But there are several reasons MGM Grand is somewhat more economical than other Vegas megaresorts.
Park MGM underwent a major room renovation in 2018 which included fresh modern designs, new furniture, and upgraded bathrooms. Public areas were also refreshed. Prior to that, it underwent a renovation in 2009 back when it was known as Monte Carlo. So the rooms and suites are not brand new but only about 5 years old.
Wrapping Up
Overall, Park MGM offers one of the best values on the Strip for travelers who prioritize affordable rates over lavish amenities. Its smart rate strategies attract all types of visitors looking to enjoy an upscale Vegas vacation without breaking the bank.
The combination of approachable prices and reasonable resort fees is hard to beat.
