Las Vegas tourism drops 7.5%—can group travel save 2026?

Las Vegas tourism stumbles in 2025 as casinos bet on group travel and renovations

Las Vegas tourism faced challenges in 2025, with visitor numbers dropping by 7.5% over the year. Despite this, some casino operators reported revenue growth, driven by factors beyond the city's core hospitality sector. Major companies like Caesars Entertainment and Las Vegas Sands shared mixed results, reflecting uneven demand across different parts of the Strip.

Caesars Entertainment saw a decline in Las Vegas performance during 2025, though its overall revenue grew. Fourth-quarter net revenues reached $2.9 billion, up 4.4% from the same period in 2024. This increase came largely from regional casino operations, which helped offset weaker results in Las Vegas itself.

Hotel occupancy at Caesars properties averaged around 92% in the last quarter, down from 96.5% a year earlier. Average daily room rates also fell, adding to concerns about softer leisure travel. The company attributed the dip to normal economic cycles, with drive-in visitors from California and Canadian tourists both decreasing. Groupme bookings later in the year provided some relief, as conventions and large events boosted occupancy levels.

Meanwhile, Las Vegas Sands reported total revenue of $11.5 billion for 2025, a 2.4% rise from the previous year. However, its Las Vegas revenue dropped by 4.7%, while other regions contributed more to growth. Executives remain optimistic, pointing to digital expansion—including online gaming—as a key driver for 2026. They also expect convention activity and group travel to support future performance.

Investments in property upgrades continue despite the softer market. Caesars is renovating parts of Caesars Palace and the Augustus Tower, temporarily reducing room availability by about 1,000 during slower periods. Elsewhere, rebranding projects are underway, such as transforming the Cromwell into the Vanderpump Hotel. Another development involves turning the former Margaritaville site into Category 10, a new venue in partnership with Luke Combs and Opry Entertainment Group.

The Las Vegas hospitality sector shows contrasting trends, with some operators expanding while others face lower visitor numbers and room rates. Groupme travel and digital gaming are seen as growth areas, though occupancy and revenue figures remain uneven across the Strip. Companies continue to invest in upgrades and new projects, signalling long-term confidence despite current challenges.