Circus executive says Vegas must shed its cheap image

Brian Seals

Friday, April 10, 1998 | 10:48 a.m.

The profitability of the Las Vegas Valley's gaming industry is threatened by competitors' price wars, says Circus Circus Enterprises Vice President of Marketing John Marz.

Marz said the competition is eroding hotel-casinos' customer bases.

"There is a segment of the marketplace coming to Las Vegas that will switch hotels for 10 bucks," he said.

Marz spoke this week at a seminar hosted by Marketing Solutions to discuss trends in the real estate market.

Faced with an oversupply of hotel rooms -- a glut Circus Circus helped create -- Circus hired Marz this year to run its marketing operation. For the past 25 years Marz was a partner in Dunn Reber Glenn Marz, Nevada's second-largest advertising and public relations firm.

Hotels need to cultivate loyalty through value, not price, Marz said.

There was a time when casinos counted on the frequent visiting gamer for the bulk of their business. That is no longer the case as Las Vegas has become a first-time destination for vacationers. Last year, 30 percent of the 32 million visitors to Las Vegas were here for the first time and 40 percent had not been here in more than a year, Marz said.

And those visitors are more and more spending their money on non-gambling goods and services.

Given that, the industry needs to cultivate a clientele that returns because of a positive overall experience and not just because they can find a $19.99-a-night room.

"We want to develop brand-loyal customers," Marz said.

"Las Vegas needs to go out and tell the world we're a resort destination, not a price destination," he said.

He said Circus Circus is working on its branding program by devoting $1 million this year to studying its customers and their habits.