What no make sense to me is that if the Vegas corporations are going the fewer is better route, meaning it's more profitable to cater to the whales than the masses,
then how are these Vegas corporations going to justify:
All the mostly empty mid-tier and economy hotel rooms (upkeep and maintenance)
The mid tier restaurants and "food halls" all over the place (Whales don't go to Steak and Shake)
And the biggest and most obvious of them all:
The 100,000 to 300,000 square feet of casino space crammed with penny slot machines, quarter, nickel, and dime slot machines, and table games that the whales would thumb their noses at.
That's a lot of casino space for a few hundred "regular" people throwing a twenty here and there.
Seems like a drain on their profits keeping those thousands upon thousands of empty slot machines blinking, twinkling, and glittering with no one sitting in front of it.
Sounds like the casinos have adopted the makor airlines' philosophy of customer appeasement.
I had a co-worker who, in a previous job, flew all around the Pacific.He traveled enough to earn the million mile level on several airlines.
His company wouldn't pay for first class seating, and he is a rather big & tall type man. Not fat at all, just really tall and the rest proportional. Trying to get comfortable in a coach or business class seat just wasn't easy.
Somehow he was able to convince one airline that he'd do all his flying on their airline whenever possible. In return, he asked that they reserve a second empty seat next to him. That gave him enough space to not sit the entire way with his knees under his chin.
On one particular flight, the plane was booked solid. When he complained that he wasn't provided the second seat (which was in his customer record to be provided), he asked for whoever was the top airline official on site. That was the company VP at that airport.
Once he made his case, the VP pointed at the plane waiting for him to board and told him, "There are only 20 passengers on that flight that I give a shit about. They are all in the first class cabin." He was upgraded to first class on that trip to make up for the mistake, but it let him know where his coach ticket placed him in the grand scheme or airline appreciation. I guess they still had a first class seat available.
I once flew to Korea on a 747 where the 7 of us in my group had the entire rear section of the plane to ourselves. It was on Korean Airlines. I'm guessing with it being a 747, it had many more first and business class seats sold in order to cover the cost. Probably the most comfortable flight to or from Hawaii in my life. Coach seating, and first class service.
The point is, there are fixed costs, and there are variable costs. As long as the casino can cover its fixed costs and the variable costs per customer, empty rooms as a rule are not a problem. If nobody is in the room, there's no cleaning, maintenance, water, electricity, front desk services (checking in/out) or accounting cost associated with it like there is in an occupied room. So, if they leave it vacant, the cost might not be more than air conditioning.
During special events when rooms are hard to get, I'm sure the higher room rates and higher occupancies help balance out the lost revenue from vacancies.
Just like the airlines, if the casinos are focusing on the people who do more to pay the bills and salaries, maybe that's the smartest course. Getting the low quality visitors who barely put $20 in a slot machine over an entire weekend won't cover the cost to have them stay there.
You have to ask yourself why every property has a player's club and how they can afford to give away free game play, food, drinks, rooms, shows, etc. By rewarding the guests who spend more time on the games, they increase the casino revenue which covers the comps and everything else the guest costs the hotel. The rewards also keep them returning to the properties they get the best rewards from -- customer loyalty.
There's an old saying: you might be staying in a comp'ed room, but you're paying for the casino!