Hainan Airlines is the fourth-largest airlines in China, in terms of fleet size.
The U.S. Department of Transportation has approved direct flights from Beijing to Las Vegas. The decision is likely to have a positive effect on gaming revenues from the Chinese tourism sector, which is significant in Las Vegas.
Hainan Airlines applied for the first-ever nonstop flights between China’s capital of Beijing and America’s gaming destination, Las Vegas. December 2nd is the date the flights begin. Every Monday, Wednesday, and Friday, a flight is expected to launch from Beijing to Las Vegas.
Boeing 787 Dreamliner Flights
Hainan Airlines has selected the Boeing 787 Dreamliner as its jet for the flights. Dreamliners has 177 economy class seats and 36 business class lie-flat seats. Introductory fares start at $650, including taxes and fees, for outbound travel from December 2 to 8. For flights leaving between December 27 and April 28, the $650 price tag is for round trip travel.
During the holidays — from December 10 to December 24 — the price for round trip tickets is going to be $1,100, including taxes and fares. Tickets are expected to be avilable at travel websites and through travel agents. HainanAirlines.com also sells tickets to all Hainan flights, while their call center can be reached at 1-888-688-8813.
300,000 Visitors a Year Already
The conservative estimate on the amount of traffic flying from Beijing to Las Vegas every year is 300,000, according to Brokerage Union Gaming. Those flights touch down in other American cities, so tourists and gamblers have to hitch another flight to Las Vegas.
Having the ability to take a direct flight means the journey is going to be quicker, allowing for longer visits and more gambling and shows. Booking agents and travel services are more likely to book vacations to Las Vegas, so the city should have an uptick in Chinese visitors.
Spending More Time in Las Vegas
Asia Gaming Brief summed up the impact: “First, direct flights would allow Chinese travelers to spend more time in Las Vegas and ultimately spend more money. Second, incremental flights and carriers would likely follow suit after the first three flights begin. We believe the first direct flights into Las Vegas could just be the tip of the iceberg as it relates to direct service between Las Vegas and China.”
If so, then other airline companies are likely to follow Hainan Airlines’s example. If so, then the cumulative effect could be to see many more visitors from the world’s third-largest city. As the national capital of the world’s second-largest economy, Beijing also has large class of wealthy elite who might want to enjoy casino gambling in America.
Chinese High Rollers in Vegas
With the decline in the Macau casino industry, the decision by USDOT to approve direct flights could have an even bigger impact than the dry numbers show. Macau officials are throttling the growth of the casino industry in their country, holding at 3%. VIP high rollers are discouraged from gambling in Macau, due to a crackdown on the junket industry, increasing oversight of credit card transactions, and a collapse of the credit system used by junkets operators.
Those Chinese high rollers might look for more welcoming locations. Singapore, Australia, and the Philippines are likely to get more traffic. So is the United States. Though Macau surpassed Las Vegas in gambling revenues years ago, Las Vegas still has an allure that many gamblers are likely to want to experience.
Marketing to Chinese Gamblers
Three of the top four Las Vegas casino companies also have significant operations in Macau: Las Vegas Sands Corp, MGM Resorts, and Wynn Resorts. All three are likely to have brand recognition with Chinese VIP players. Even more important, all three casino companies are likely to have significant databases of Chinese high rollers. LVS, MGM Resorts, and Wynn Resorts can market to those gamblers with junkets to Las Vegas.
In the past few years, most Las Vegas Strip casinos have begun to cater more to the growing Asian mass market and high roller niche. Vegas Strip gaming floors now have more baccarat tables, which are the favorite game for Chinese gamblers.
