As a business strategist and consultant, I guide organizations in crafting and executing strategies that are both purposeful and pragmatic. My approach, rooted in the Business Resilience Framework, helps companies navigate present challenges while building a foundation for long-term success.
For decades, Las Vegas has been the unrivaled symbol of entertainment and leisure. But in 2025, the shine is fading. Visitor volume has dropped by more than 7% in the first half of the year and plunged 11–12% in the summer months. Meanwhile, the cruise industry is charting new records—37.7 million passengers expected globally in 2025, with North America leading the way.
What explains this divergence? The answer reveals how consumer preferences are shifting, and why the dynamics of leisure competition are entering a new era.
Las Vegas: Value Lost, Loyalty Eroded
Las Vegas once promised outsized value—affordable rooms, abundant entertainment, and the thrill of “what happens here.” But visitors now complain of being nickel-and-dimed by high prices, hidden fees, and lackluster value. International arrivals have slumped, economic uncertainty weighs heavy, and travelers increasingly opt for short, targeted, or event-driven trips.
Discounting and aggressive promotions have followed, yet these tactics may only reinforce the perception of a brand in decline. When loyalty erodes, recovery requires more than marketing—it requires reinvention.
Cruising: Value Redefined, Market Expanded
In sharp contrast, cruising has become the ascendant choice. Passenger numbers are climbing at double-digit rates in key markets. Why? Because the cruise industry has leaned into its most resilient advantage: all-inclusive pricing and perceived value.
Today’s ships are not just vessels—they are floating resorts, destination platforms, and family playgrounds. They deliver experiences for multi-generational groups, solo travelers, and younger demographics who once had little interest in cruising. For many, the appeal is simple: “the whole vacation is paid for up front.”
Substitution in Action
This is more than coincidence. Analysts point to a substitution effect: travelers priced out or disillusioned by Vegas are now choosing cruises. The family, group, and event-oriented segments once marketed by Las Vegas are now thriving at sea.
Both Vegas and cruising compete for the same scarce resource—discretionary leisure spending. But cruising currently offers greater safety, convenience, predictability, and breadth of experience. In the calculus of consumer choice, the ship is winning.
Strategic Alchemy: Lessons Beyond Leisure
What we are witnessing is not just the decline of one destination and the rise of another—it’s a case study in value migration. When an industry loses its grip on perceived value, another will seize the opportunity.
For leaders across all sectors, the lesson is clear:
- Know your value proposition and guard it fiercely. Once eroded, it is difficult to restore.
- Watch for substitution effects. Competitors are not always direct—they may emerge from adjacent or even unexpected sectors.
- Invest in evolution, not just promotion. Reinvention outpaces discounting.
Las Vegas must find a way to reinvent its promise, just as cruising has redefined its own. Otherwise, the tide will continue to turn.
Bottom Line: Leisure consumers are voting with their wallets. In 2025, they’re casting fewer bets in Vegas and booking more cabins at sea. That’s not just a trend—it’s a signal about where value, loyalty, and growth are heading.
Onward!