Cheap rooms could sell casinos short
Prolonged price cuts, experts say, can harm brands such as MGM Mirage. A business model gaming companies have followed for decades has turned into a precarious balancing act, as casinos slash room rates to levels not seen in more than a decade. Cheap rooms have been a fail-safe way for gaming chiefs to fill their casinos with gamblers and keep profits up in down economic times. But some Strip resort operators are learning that cutting room rates in this economy can take a greater toll on the bottom line than having fewer gamblers at the slot machines.