Casino Style 2024 | Page 44

Boogie Nights adds to the kitschy fun with celebrity lookalikes ( like Britney , wrapped up in a yellow Burmese python )
Calvin Harris and Diplo , rake in tens of millions of dollars per year , and those costs trickle down to the club-goer .
Yet a certain demographic has always been willing to pay , even in lean times . XS opened in 2008 , during a recession that reduced overall Strip revenue by 16 percent . Even so , this “$ 100 million temple to revelry ” started strong and soon was doing gangbuster business . By 2011 , Strip beverage departments were bringing in more than $ 1 billion a year , inspiring more big clubs like Hakkasan at the MGM Grand and Omnia at Caesars Palace .
Those Strip palaces are more than viable — XS alone generates about $ 90 million in revenues per year — in part thanks to out-of-towners , for whom a trip to Vegas is usually a splurge . According to the Las Vegas Convention and Visitors Authority , one in four Sin City visitors are first-timers — that ’ s 10.2 million people in 2023 — and they budget for extravagance .
But inevitably , times and tastes change . In the U . K ., the once-reliable 18- to-30 age group is less interested in the nightclub experience . Attendance is at a quarter of peak levels , and the number of clubs has dropped from more than 1,200 in June 2020 to about 870 today — a third of the inventory .
World Metrics attributes this downward trend to “ a substantial shift in the social behavior and preferences of young adults ,” influenced by “ changing entertainment options , economic conditions and cultural trends .”
Which begs a couple of questions : What still works in the club environment ? What ’ s become passé ? And most importantly , what ’ s next ? club entrepreneur Gideon Kimbrell called Covid “ the outsized straw that broke the camel ’ s back .” He said the slide began with oversupply and a “ slowbuilding tsunami of disinterest in jam-packed clubs … Hipsters and new money are now seeking more intimate lounges , bespoke experiences and upscale restaurants .”
John Ruiz , principal at R2Architects , has witnessed the same phenomenon . He calls it “ an evolution that ’ s been going on for some time and is picking up more momentum .”
Club patrons these days “ are overwhelmingly experience-seeking — visually , audibly , aromatically , etc .,” says Ruiz . “ They seem to be looking for more social interaction in a more comfortable setting , which blends an energized social scene fueled with music along with food and beverage .”
Smaller entertainment concepts are cropping up , like lounges with live bands and / or DJs that “ energize the venue and the adjacent spaces .” Guests can enjoy closer quarters with subdued lighting in an atmosphere that lends itself to actual conversation . Enhanced by music , these smaller venues have a
Let ’ s Get Small
When it comes to clubs , the Gen-Z and millennial generations — including adults from age 18 to 43 — remain the prime demographic . According to the American Nightlife Association , more and more , these patrons are after “ experiential dining and alternative entertainment ,” not impersonal raves that can cost a mortgage payment and more . The model may have stumbled even before the pandemic . In a 2020 article in Rolling Stone ,
Omnia at Caesars Palace epitomizes mega-club spectacle , with 75,000 square feet of club space and an 11-ton kinetic chandelier
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