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Why are Hotels in Las Vegas Cheap – The Real Deal

If you are planning a vacation to see the big city lights of Las Vegas, Nevada, you’ll want to start by researching the cost of travel and accommodations. You will find that a lot of hotel prices are very affordable in Las Vegas. Considering the popularity of the destination, this may come as a surprise.

Why are hotels in Las Vegas so cheap? Hotel rooms in Las Vegas tend to be inexpensive because many hotels make their primary income on in-house entertainment in the form of casinos, restaurants, shows, and shopping rather than on the price of the room.

Hotels in Las Vegas want you to stay with them so you can take advantage of – and purchase – their other amenities. Most hotels in Las Vegas do not need to have high room rates to make a profit. They use the tactic of inexpensive hotel rooms to ensure you choose to stay with them and spend the bulk of your money on their property.

hotel lobby desk

Discover our top picks for hotels on the Las Vegas Strip and Downtown! We'll tell you the best hotels in every price range from budget-friendly to luxury.

With Such Cheap Rates, How Do Hotels in Las Vegas Make Money?

Now that you have a good idea why your Las Vegas accommodations are affordable let’s look at how the hotels make money. Knowing where your money goes when visiting Las Vegas can also help you prepare for your trip by thinking about the activities you may want to participate in.

Hotels can charge you a low rate for your room, in the hopes you’ll spend money on:

  • Gambling/ Casinos
  • Singing performances
  • Stage shows
  • Eating at restaurants
  • Drinks
  • Onsite activities

In addition to these forms of entertainment, there are other reasons hotels can charge lower prices than other major cities or popular destinations.

The Popularity of Las Vegas Brings Guests

Las Vegas hotels do not need to worry about a lack of customers. This city is an extremely popular tourist destination. Prices can stay lower when business is steady. There is no shortage of rooms in Vegas; it’s a vacationer’s market here.

You may encounter a different problem when booking your Las Vegas hotel. They are likely to fill up due to the popularity. If possible, make your reservation several months before your scheduled vacation.

While planning a last-minute trip to Las Vegas is certainly possible, you may find that there is a big convention or other event happening in town at the same time which will make finding a hotel more difficult and drive up room rates.

In addition, you may want to book a room in a hotel that doesn’t charge a resort fee to help keep the price down even further. You can read our article that lists all the Vegas hotels that don’t charge resort fees here.

Las Vegas Vacation Packages

Travel packages that include both airfare and hotel also help to drive down rates. When you book a Vegas vacation package, you’ll find rates are very competitive.  Talk to a travel agent about all-inclusive travel rates. You may get your flight, hotel, and meals at a great price.

Here’s a local travel operator that we recommend that offers discount airfare and hotel packages.

Some of these package deals even include entertainment options. These may include shows, games, or tours. Look at several different packages to find one that has the most items you prefer. There are often many options.


Las Vegas has over 150,000 hotel rooms available in the city. The growing influx of tourists makes it easy for hotels and casinos to make money. However, competition among hotel companies is fierce.

As new investors build more hotels, the competition among the hotels gets even greater. The winner in this scenario are the tourists as the hotels are always trying to offer lower prices and discounts to entice more visitors.

When booking hotel rooms in Las Vegas, be sure to check several different hotels to find the best price. If the cost of your favorite hotel is higher than a few others, call and try to negotiate a better price. You might get a price match.


In Las Vegas, you can find something to do at any hour of the day or night. Many celebrities regularly perform in Las Vegas. Many people travel here just to see their favorite singer or comedian.

Las Vegas is also known for its exceptional magic shows. There are literally dozens of magic shows up and down the Strip. Check out some of the best Vegas magic shows at vegas.com.

Large hotels in Las Vegas often have casinos, theatres, plentiful buffets and restaurants. Check out other hotels or entertainment venues nearby. Make a tentative entertainment schedule before you arrive.

You may need to get tickets in advance for some shows. You don’t want to arrive in town and find out there are no tickets available for the show you want to see.

Las Vegas Hotels Have Multiple Sources of Revenue

As we mentioned, hotels can keep their nightly prices low because they have multiple sources of revenue. Tourists may visit hotels to see specific performances or to try out the casino.

Your hotel may also house a spa, fitness center, and pool. You can work off all the calories from the buffet at the fitness center and recover from a night out at the spa. A vacation just isn’t complete without a dip in a luxurious heated pool, either.

You’re likely to find restaurants and gift shops in your hotel. Every potential dollar spent in one of the onsite amenities is a reason the hotel keeps room rates affordable.

Many hotels have people dressed up in costumes to add to the scenery. For a small tip, you can get some great photos with the characters. If you are new to gambling, some casinos offer lessons for beginners, as well.

Pay attention to all the extras offered by your hotel or the businesses nearby. You are sure to find plenty of ways to both play and relax. You might even find a few free activities.

Balcony Rooms at The Cosmopolitan L...
Balcony Rooms at The Cosmopolitan Las Vegas

Saving Money in Las Vegas

An affordable hotel is helpful on vacation. However, there are several ways to save money. Take the time to learn about the different options at hotels in Las Vegas. You can also travel with friends and book all-inclusive packages.


Many hotels have amenities and services that help you save money on your trip. A simple mini-fridge or coffee maker in the room reduces the amount of money you spend on food. Your hotel may also have a complimentary breakfast buffet or a happy hour with snacks. Some hotels even have free shuttles that take tourists to specific destinations throughout the day.

         All-Inclusive Stay

If you are staying at a resort or casino, look at the different pricing options. You can often include meals or entertainment on your bill. Travel agents can also help you book a trip that consists of a flight, tours, and accommodations for one lump sum.


You can limit the money spent on transportation by staying in a hotel near your desired activities. You can stay in a hotel with a casino if your main goal is to gamble, for example. You are sure to find several entertainment options and restaurants near most hotels in the city of Las Vegas.

         Share a Room

If you are traveling with friends or family, think about sharing a room. Las Vegas is such a bustling city; you are sure to spend minimal time in the room. Suites may have several sleeping areas, as well.

         Spending Limit

It is easy to lose track of spending when you are gambling and eating at restaurants. It is important to look over your budget before you leave for vacation. Set a spending limit for each activity. If you wish to purchase something extra, give up an activity or a fancy meal. You can also allow a miscellaneous category to your budget for spontaneous spending.

If you need to know how much spending money to bring to Las Vegas in the first place, be sure to read the article we wrote to answer that question.

Outdoor Time in Las Vegas

So, what to do outside of the hotel and casino? After long nights of partying, you may find that you need a little break. There are plenty of outdoor activities in Las Vegas. Many of these trips can fit right into your budget, too.

  • Head to the Valley of Fire for some hiking or go golfing at Angel Park.
  • Hike in Death Valley or Red Rock Canyon.
  • Take a day-trip to the Grand Canyon.
  • Check out some zip-lining in Bootleg Canyon
  • Take a dune buggy through the sand dunes.

If you go during the warmest months, you can enjoy some water sports, as well. Kayak down the Colorado River or catch a boat ride on Lake Mead. Whatever your budget, you can find something to do that’s just a day-trip from your hotel. And, in most cases, you can be back in time for the buffet!


Take some time to research different hotel and travel options. Check the business websites to find out more about amenities, prices, and entertainment. You can fit a lot of activities into a day in Las Vegas when you plan well. The hotels are affordable due to the popularity of the destination and the competition in the area.

Related Questions:

Which hotel has the most rooms in Las Vegas? The hotel with the most rooms in Las Vegas is the MGM Grand. The hotel has 6,852 rooms and is not only the largest hotel in Vegas but it has the largest number of rooms of any one hotel in the U.S.

How long would it take to stay in every hotel room in Las Vegas? Las Vegas currently has in excess of 150,000 hotel rooms and it would take one person approximately 411 years or 5 average lifetimes to spend one night in every single room.

Related Articles:

Find out all about Las Vegas hotels with balconies or terraces in our article here.

Can Las Vegas hotels survive an earthquake? Find out in our article here.

Wendy Mullennix

My name is Wendy Mullennix. I love travel & travel, in that order :) I'm also a Las Vegas local. I enjoy exploring this crazy city with my hubby and riding fat tire bikes in the desert.

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