THE SECRET TO THE SUCCESS AND RESILIENCY OF “SIN CITY” AND “THE HAPPIEST PLACE ON EARTH” AS WELL AS THEIR INFLUENCE ON “EXPERIENTIAL RETAIL”
Introduction
Walt Disney World, commonly referred to as “The Happiest Place on Earth” and the Las Vegas Strip as “Sin City” are two of the most visited entertainment destinations in the world annually and in many ways very similar yet in many different. Both can be classified as human playgrounds, however, “Sin City” is a playground which caters exclusively to adults while “The Happiest Place on Earth” takes a more holistic approach catering to the family. Alcohol and gambling are extremely prevalent in “Sin City” whereas when visiting “The Happiest Place on Earth” alcohol and gambling are limited, controlled to a great extent and done so very deliberately. However, both “Sin City” and “The Happiest Place on Earth” continue to thrive in their in own right.
An argument why Walt Disney World and the Las Vegas Strip are more than just iconic tourist destinations is discussed. Additionally, a case is made how they have fundamentally changed the way we dine, shop and enjoy life! The article examines the many similarities between Walt Disney World and the Las Vegas Strip, such as how their infrastructure and how the external roadway and air systems played a key role in their initial site selection and enhanced their lactation and expedited their development and continue to this day to be instrumental aspects to their ongoing and continuing success.
This article examines Walt Disney World and the Las Vegas Strip as two of the best places to experience people and a world of diverse characters. If you have ever been to Las Vegas or Walt Disney World you will agree both of these locations for numerous reasons, which I will expand on provide an ideal backdrop to examine the human experience. Walt Disney
World and the Las Vegas Strip are undoubtedly two of the world’s premier places the world has ever known for the past half century. They are certainly prime tourist destinations, as well as economic engines for their respective economies. The article will also take a brief look at an important element of any great place, resiliency.
Finally, both places are successful and have continued to adapt to meet the needs of their consumers. Walt Disney World and the Las Vegas Strip are arguably the pioneers of “experiential retail” decades prior to “experiential retail” even becoming terminology commonly utilized and in today’s retail environment.
Since the advent of the “mega hotel” and its refinement, just outside of Las Vegas and Orlando more than five decades ago, “experiential retail” became the hallmark of both Walt Disney World and the Las Vegas Strip. However it was more than just retail-but dining and entertainment along with retail effectively creating a new type of human experience. Combining all the aforementioned attributes of location, vision, infrastructure, adaptability, meeting the needs of their consumer, pioneering “experiential retail,” Walt Disney World and the Las Vegas Strip are certainly prime examples setting the standard for resilient destination-oriented places others strive to emulate.
Comparing and Contrasting Walt Disney World and the Las Vegas Strip
Walt Disney World and the Las Vegas Strip share many commonalities, believe it or not, and there are numerous differences. Both are two of the world’s premier tourist destinations attracting people from countries near and far. In 2016, according to Wikipedia, over 53 million people traveled to Walt Disney World in Central Florida and its four main theme parks: Magic Kingdom, Epcot, Disney’s Hollywood Studios and Disney’s Animal Kingdom. Similarly, over 42 million people visit the Las Vegas area annually. Both Walt Disney World and the Las Vegas Strip are located in subtropical climates, contain many unusual characters, and are located in unincorporated areas adjacent to larger cities.
Both are close to international airports, interstate highway systems, have arguably been pioneers of “experiential retail” and have had significant impacts on their regional economies. Walt Disney World and the Las Vegas Strip contain mega hotels, entertainment venues, and a monorail system, which can be accessed internally by multiple mega hotels. A chart follows, in Appendix A, which compares and contrasts some of the major characteristics of Walt Disney World and the The Las Vegas Strip.
Both places certainly have a visible security presence, however, Walt Disney World depicts a much more subtle version than you typically find along the Las Vegas Strip. Security is definitely an important aspect to the success of each of these destinations and both do an incredible job at minimizing any type of emergency which may occur so the other tourists are not impacted and in most cases not even aware of what may have occurred.
They maintain control of their respective environs quite well and do so in an extremely professional manner. In late 2017, a gunman killed 59 people and injured more than 500 in an isolated incident along the Las Vegas Strip. Walt Disney World is not immune from its share of minor altercations. There are several documented interactions between guests and cast members and also between guests where security and/or security and the Orange County Sheriff’s Office was required to be called.
Both Walt Disney World and the Las Vegas Strip pioneered and mastered the mega resort and this idea of “experiential retail.” Each contains a plethora of themed hotels with shops, all-day entertainment and dining options, and provides the consumer with a multitude of options of what to do next.
Conversely, there are many distinct differences between Walt Disney World and the Las Vegas Strip. Each serves a very different consumer. Walt Disney World caters to the family while the Strip caters to the adult. Alcohol and gambling are hallmarks of the Las Vegas Strip, however you’d be hard pressed to find alcohol or gambling in Walt Disney World. Alcohol is extremely controlled and not readily available in Walt Disney World whereas you can hardly go a block or less on the on the Las Vegas Strip without seeing some type of alcoholic beverage in some size, style, shape, form or flavor.
Walt Disney World consists of 43 square miles in Central Florida, developed largely in an area surrounded by vast swampland equivalent to the size of San Francisco and twice the size of the island of Manhattan in New York City. The Las Vegas Strip consists of a four-mile stretch of roadway, simply a long expansive boulevard engulfed on either side by mega resorts.
Walt Disney World operates effectively as its own mini City and together as really a large common community which many refer to the “Happiest Place on Earth” which when you visit Walt Disney World, whether you are in the Magic Kingdom, Epcot, Disney’s Hollywood Studios, Disney’s Animal Kingdom or one of the many resorts you cannot help but feel part of the Disney Family, a “Guest” as their “Cast Members” refer to visitors.
Conversely, the Las Vegas Strip is located in unincorporated Paradise and Winchester in Clark County, Las Vegas, Nevada referred to as “Sin City.” While the Las Vegas Convention and Visitors Authority does not separate all statistics relative to Las Vegas from what is known as the Las Vegas Strip, Clark County, Downtown Las Vegas and the Boulder Strip, the vast majority of the gaming is generated comes from the Las Vegas strip.
Both the Las Vegas Strip and Walt Disney World continue to flourish. Neither place is perfect and obviously both can certainly improve, yet they continually adapt to meet the needs of their consumers’ demands.
Visioning and Early Development of Walt Disney World and Las Vegas
Throughout history, it has been repeatedly proven that behind every successful plan is a vision, a visionary or master plan. Planning history is filled with people of vision, people who effectuate change: Daniel Burnham, Pierre Charles L'Enfant, Frederick Law Olmstead, Jane Adams, Paul Davidoff and the list goes on.
Each sees beyond an idea or a thought and often may never live to see the fruits of their labor, yet their names are never forgotten. Walt Disney World and the Las Vegas Strip were developed with a vision, and they had to be, as one is located primarily on swampland, Walt Disney World, and the other in the middle of a desert, Las Vegas Strip, just miles from a military testing ground.
Both had requirements which had to be met if they were to be successful: access to transportation, infrastructure, process (vision), a labor force and most importantly, a market or consumer for what was being proposed: an unique all-inclusive entertainment venue, which we know today is quite an understatement, like the world had not seen and would attract people from distances near and far.
Development of Walt Disney World
Disneyland, located in Anaheim, CA, opened in 1955 and Walt Disney Productions, sought a second theme park location, which would capture a greater portion of the market. Their market research revealed only 5% of people east of the Mississippi River visited Disneyland yet 75% of the population lived within this geographic area.
The other factor which contributed to the location of what we know today as Disney World, is Walt Disney wanted to have greater control over the land area surrounding his second theme park, as he did not believe the land uses surrounding and adjacent to Disneyland in Anaheim necessarily captured the essence of his vision.
Therefore in the late 50’s and early 1960’s Walt Disney meticulously sought a land area large enough to meet his needs for an expansive “entertainment resort city” or what planers commonly refer to as a “master planned community.”
He settled on an area in central Florida with a roadway network and future Interstate Highway Four/Turnpike System, as well as McCoy Air Force Base, in the future Orlando International Airport, which was six miles southeast of Orlando, Florida. Walt Disney World’s development, in terms of one company taking very deliberate steps to purchase nearly 50 square miles of land in Central Florida, without raising suspicion in the media of what was occurring by creating blind trusts and selling off chunks of acreages to ward off the press which worked to some degree, took a slightly different path than the development of the Las Vegas Strip.
The airport was jointly used as a civilian-military facility in the 1960’s but McCoy Air Force Base was officially closed as a military installation in 1975, following a military drawdown at the conclusion of the Vietnam War. The I-4 Interstate Highway System which traverses Central Florida and South Florida was first constructed in 1959 and the section from Tampa to Orlando was completed in 1962.
Development of The Las Vegas Strip
While the Las Vegas Strip was not conceptualized by one individual its early development shares some similarities with that of Walt Disney World in Central Florida with some distinct differences, However the characteristics around which the Last Vegas Strip developed and continues to evolve today are very similar to that of Walt Disney World, as both remain two of the world’s most iconic entertainment venues. The first hotel constructed on the Las Vegas strip was El Rancho Vegas, built in 1941 with only 63 rooms.
A few more hotels were constructed shortly thereafter, and due to the gaming component other hotels, which exist today, such as the Flamingo, were funded at the time by organized crime. Kirk Kerkorian, who became a prominent figure in the future development of the Las Vegas Strip purchased the Flamingo hotel. He also bought 80 acres across from the Flamingo in 1962, which led to construction of Caesars Palace.
In 1967, Kirk Kerkorian bought 82 acres of property in Las Vegas with architect Martin Stern, Jr. and built the International Hotel. At the time when it opened in 1969, this was the largest hotel in the world and showcased some to the most famous performers of the time including: Barbra Streisand and Elvis Presley. Having renowned performers paid tremendous dividends at the hotels and casinos on the Las Vegas Strip.
Remember, Walt Disney’s concern about controlling property surrounding and adjacent to the new site of Walt Disney World outside of Orlando, due to concerns about the businesses which would develop and had developed around Disneyland in Anaheim, CA. The land uses in close proximity to any large master planned community or development are critical and often as important as the actual community itself due to the complimentary impact or in cases the negative impact they could potentially have.
Following his purchase of the Metro-Goldwyn-Mayer Movie Studio in 1969, along with partner and architect Martin Stern Jr., Kirk Kerkorian opened MGM Grand Hotel and Casino in 1973. At that time, this was the biggest hotel in the world, with more than 2,000 rooms, until a terrible fire, which killed 84 people, significantly damaged the building in 1980. Subsequently in 1986, Mr. Kerkorian sold his interests in the MGM Grand to Bally Manufacturing.
In the late 1980’s and early 1990’s the Las Vegas Strip underwent a transformation from a gaming, hotel, restaurant and entertainment City to a gaming/hotel/restaurant/entertainment experience in every building, which was constructed. In 1989, the Mirage Hotel was constructed and in 1990, the Rio and Excalibur opened their doors. These facilities really transformed the Las Vegas Strip from simply a gaming destination to a Mega gaming destination where you were not only going to “the Strip” or “Vegas” but to “Caesar’s” or “Bally’s” or the “Mirage.”
It is s not just “I am going to Vegas” it is “Where are you staying when you get to Vegas?” Literally, you would not have to leave the hotel if you did not want to. Each includes restaurants, entertainment, shops, pools and all vacation amenities one could possibly desire. This was a change from the traditional Las Vegas Strip of old; The Dunes, The Sands, the Stardust and the Sahara. Some of these still remain but are somewhat archaic and obsolete, nostalgic to many but without the vast amenities many demand today.
The development of the Las Vegas Strip, although not planned as deliberately as Walt Disney World was developed with intention and as with true of an objective-providing the ultimate entertainment destination for people of all demographic and socioeconomic backgrounds across the globe adjacent to the Mojave Desert where the federal government often conducted testing for atomic bombs. The first Atomic Test was conducted in 1951.
Additionally, given the nature of the type of entertainment featured along the Las Vegas Strip, the Las Vegas Strip, has some ties with organized crime. Yet the location of the Las Vegas Strip is as critical to its future success as the location of Walt Disney World. In order for the Las Vegas Strip to flourish, like Walt Disney World, an interstate Highway System and International Airport were necessary elements to its development and growth.
With the passage of the Federal Highway Act in 1956, improvements to the US 91 corridor were made. Additionally, Interstate I-15 opened in 1960, which extended from the California state line to north of Sloan, and in 1963, it reached the south end from Las Vegas Valley south of Glendale was also finished. By 1967, I-15 had been constructed along the entire length of US 91 except through parts of Las Vegas and near Mesquite.
Further McCarran International Airport opened to commercial flights in 1948, serving over 35,000 passengers, and as Las Vegas grew in popularity during the 1950’s, as a gambling haven, growing to nearly 1,000,000 passengers annually a new passenger terminal on Paradise Road, opened in March 1963. The airport was officially renamed McCarran International Airport in September 1968 and grew exponentially to accommodate over 45,000,000 passengers in 2015.
Advent of “Mega-Resort” and “Experiential Retail”
In 1971 Walt Disney World opened with Disney’s Contemporary, Polynesian and Fort Wilderness Resort and Campground. However Walt Disney Company is continuously conducting market research and seeking new ideas to bring people to Central Florida. Of the 34 resorts and hotels on the Walt Disney property, 28 are operated by Walt Disney Parks and Resorts; and they are diverse. Each has its own theme and many include dining, shopping and specialized entertainment, including the original Disney’s Fort Wilderness, which includes 800 campsites and over 400 cabins.
The resorts are located throughout the entirety of Disney World including: Animal Kingdom, Epcot, Magic Kingdom, Disney Springs, and Disney’s Wide World of Sports. The resorts are also categorized into four classifications-each with a different level of luxury assigned to them: Deluxe, Moderate, Value and Disney Vacation Club Villas. The variety of resorts allows families of different income levels to take advantage of the Walt Disney World Resort, all its Parks and all the amenities it has to offer. Remember this is very similar to the Las Vegas Strip and its diverse resorts accommodating people various demographic and socioeconomic backgrounds.
Similarly, the Las Vegas Strip developed El Rancho Vegas Hotel, with just 63 rooms in 1941. The Flamingo Hotel opened in 1946 followed by the construction of several other hotels. Gaming was legalized in 1931 in the State of Nevada, and in 1948 Thunderbird Hotel and Casino opened. More hotels and casinos followed, and in 1959 the Las Vegas Convention Center opened its doors and the State of Nevada Gaming Commission was formed by the legislature.
Although the Las Vegas Strip began to see its casino, convention center and entertainment industry grow almost exclusive of one another the construction of the International Hotel began to change the landscape of the Las Vegas Strip and the entire Las Vegas area. When it opened in 1969 it was the largest hotel in the world and showcased some to the most famous performers of the time including: Barbra Streisand and Elvis Presley.
The International Hotel signified the first true “mega-resort,” the largest hotel and casino in the world, constructed by Kirk Kerkorian and architect Martin Stern Jr. The hotel incorporated a design which utilized a centralized core and room wings which came off the central core. It included numerous thematic restaurants.
Having renowned performers including Barbara Streisand and Elvis Presley paid tremendous dividends at the other hotels and casinos on the Las Vegas Strip. The International was also the host for other major events such as the Leon Spinks Muhammad Ali World Heavy Weight Championship Fight in 1978. The synchronicity of the development of the “mega-resort” in Central Florida and Las Vegas, Nevada in the late 1960’s and early 1970’s is quite amazing.
Interestingly, the advent of the “mega-resort” in Las Vegas in 1969, including entertainment, thematic restaurants and lodging preceded the opening of the first resorts in Walt Disney World by just two years. The opening of the International spawned other “mega-resorts” on the Las Vegas Strip. In 1973 the MGM Grand opened, which included 2,100 rooms, eight restaurants, a 50,000 square foot-gaming area, as well as two large showrooms with seating capacities of 800 and 1,200 respectively.
After the MGM Grand construction, and with the Las Vegas Gaming Industry taken off, Clark County, Nevada Gaming Revenue surpassed $1 billion, the 1977 building of “mega-resorts” along the Las Vegas Strip became rampant. In 1989 the Mirage opened, with over 3,000 rooms and in 1990 Excalibur became the new world’s largest hotel, constructed with over 4,032 rooms. Several hotels followed, each containing numerous rooms, restaurants, nightclubs, entertainment venues, indoor/outdoor recreation and numerous shopping and unique amenities.
Although some of the hotels on the Las Vegas Strip are related in some fashion they are largely exclusive and run independent of one another. Many are operated by the same company or parent company however but this does not serve the same function as the hotel system operated by Walt Disney Company. If you really look at it, Walt Disney World and the Las Vegas Strip are two of the first places you can point to which implemented the practice of “experiential retail” or maybe even mastered the concept.
In the case of Walt Disney World or Las Vegas however it was much more--including: entertainment, dining, shopping and all, planned in a deliberate manner to meet and adapt to the needs of the consumers and what they were seeking and essentially demanding.
Walt Disney World and The Las Vegas Strip were pioneers in this sense. It was “experiential retail,” dining, entertainment and shopping and all the aforementioned amenities readily accessible. They could purchase merchandise, explore multiple dining and entertainment options and did not have to walk outside the hotel.
Walt Disney World and Las Vegas Strip Impact on the Economy
Over 400,000 jobs in Southern Nevada or 44% of the total workforce were supported by tourism in 2016. In 2016, of the $9.7 billion in total gaming revenue in Clark County, Nevada, which encompasses Nevada, $6.4 billion was generated on the Las Vegas strip. Through October 2017, the Las Vegas Strip produced over $5.4 billion in gaming revenue.
Walt Disney World generates the equivalent to 2.5% of the annual Florida Gross Domestic Product or $18.2 billion in economic activity. Additionally, in 2009, more than 1 in 50 people who resided in the State of Florida, population 7.2 million, worked in a position tied directly or indirectly to the operation of Walt Disney World. Walt Disney World is also the largest single site employer in the United States, employing more than 74,000 people.
Continually Adapting to a Changing Economy and Consumer Base
In order to remain on top as a premier destination, as a place where people from all over the globe travel to continuously year after year, with numerous other options available, you have to adapt and continually meet the demands of your consumer. This has become more difficult to do with a shift in demographics over time, change in consumer spending, and radical shifts in the economy. Moreover one of the first expenses which people cut in difficult times is discretionary spending. This makes the success of both Walt Disney World and the Las Vegas Strip over time and their resiliency even more impressive.
However, it’s more than just surviving the business cycle which differentiates Walt Disney World and the Las Vegas Strip. It’s the infrastructure improvements as well as the experiential improvements which both places have and completed and continually plan to address the needs of not only a changing demographic but what that demographic demands when they visit Walt Disney World or the Las Vegas Strip. Consumers have come to expect something more from both of these places as both have proven have continually delivered and been up to the challenge of bringing their consumers a “better than average” experience and created an expectation of excellence. Neither has disappointed to-date.
In 1994 several infrastructure improvements were completed on and in close proximity to the Las Vegas Strip. McCarran Airport opened Interstate 15, an airport connector roadway system that tunnels under the east-west runways. Additionally, four skywalks were constructed over the intersection of Tropicana Boulevard and the Las Vegas Strip and a 300-room hotel-casino, Boomtown opened on Blue Diamond Road at Interstate 15.
The Las Vegas Strip has become extremely auto-centric and if you’ve ever walked along the strip you’ve probably experienced some apprehension, particularly walking along the strip at night. Adding skywalks allows pedestrians to easily cross Las Vegas Boulevard, without having to worry about safety due to the visibility and proximity of the skywalks. There are typically large very visible Metropolitan Las Vegas Police Department personnel strategically placed along the Las Vegas Strip and often numerous bike patrol units.
Arguments can be made for and against the consumer, the corporation, the individual operators or the industry as a whole but the fact remains that a significant concentration in ownership has occurred in both the Walt Disney Company and along the Las Vegas Strip. In 1998 there were 21 casinos along the Las Vegas Strip, owned by 12 companies, earning in excess of $12 million in revenue, including two casinos which were co-owned by two different legal entities.
Further, the Nevada Gaming Control Board considered six casinos owned by companies which were not qualified as “public.” Conversely In 2012 there were 27 casinos, all of which were owned by publicly-traded companies. Two companies, MGM and Caesars Entertainment, owned 59% of the market.
Caesars Entertainment Corporation built a $223 million shopping, dining entertainment, open air promenade, called The LINQ which officially opened in January 2014. It features a 550-foot tall High Roller, which is the tallest in the world. The promenade can be accessed directly from the Flamingo Hotel and includes numerous entertainment, dining, shopping and other places and setup as a pedestrian promenade or boardwalk. In 2018, construction on a zip line will commence.
Since Walt Disney acquired intellectual property in Lucasfilm in 2012 it has certainly continued to capitalize, from movies to merchandise to incorporating attractions at its various theme parks. Walt Disney, not unlike any of its other signature brands, since the acquisition has integrated in every conceivably manner this new “division” of Disney.
Hollywood Studios has featured Star Wars Weekend, and of course there is the Star Tours Ride and Jedi Academy and the latest movie The Last Jedi another box office blockbuster. However Disney, had been prior to the movie and never stopped planning, for its theme parks so its consumers would never be disappointed. A 14-acre exhibit entitled: Star Wars: Galaxy’s Edge, is currently under construction with a planned opening in 2019, at Hollywood Studios in Walt Disney World.
Further, Walt Disney does not stop with one idea or become complacent. They are continually conducting market research, finding out the needs and desires of their consumers and how they can incorporate these with their overall company philosophy. To that end, the company is in the early stages of planning the Star Wars Experience. This includes a hotel but is not simply a place to stay and also not a one size fits all-another hallmark of a successful company-how to meet the needs of as many consumers as possible with similar interests.
The Ultimate Backdrop for People Watching and Examining the Human Experience
Where else can you go and use a public restroom and as you enter the restroom there is the gentleman, responsible for maintaining the bathroom, standing outside and singing: “Welcome to the restroom. Welcome to the restroom.” Full of characters. Walt Disney World is full of them. You can dine with them or take pictures with them. You can request their autographs and interact with them.
The Las Vegas Strip also offers a unique perspective on the human experience. Unlike Walt Disney World you will be offered a baseball-sized card containing the name and number of an escort service as you walk down Las Vegas Boulevard, often by a line of individuals standing there all day and grinding the cards together and sticking them in your face to get your attention.
Walk further and you may see someone detained by the Metropolitan Police, sitting on the ground, potentially and most likely inebriated but totally under control and supervision by the police. Don’t want to leave the hotel? You will most likely run into at least one, two, three or more, depending on your stay on the Las Vegas Strip, of a Bride, dressed in full Wedding attire. Walk the Las Vegas Strip at night? This is the most fun. People watching is what it’s all about. You’ll see the light show at Treasure Island or a Gondola at the Venetian.
Conclusion
The article examined similarities between Walt Disney World and the Las Vegas Strip, such as their infrastructure and how the external roadway and air systems and the roles they played in their initial site selection and location and how they enhanced and expedited their development and in how in many ways each of these two places unique from any other.
It looked at the similarities between the development of Walt Disney World and the a Las Vegas Strip and how they contained similar-style all-inclusive “mega” hotel and entertainment facilities where someone can literally visit and stay within one or two buildings all day and be entertained, fed and provided a wide-range of activities to keep them occupied for hours at a time and began a new era of which many today refer to as “experiential retail.”
The article examined Walt Disney World and the Las Vegas Strip as two of the best places to experience people and a world of characters. If you ever been to Las Vegas or Walt Disney World you will agree both of these locations for numerous reasons. They certainly share similarities but also numerous differences yet both places are successful and have remained resilient as they continue to adapt to meet the needs of their consumers. Walt Disney World and the Las Vegas Strip are undoubtedly two of the world’s premier places the world has ever known for the past half century. They are certainly prime tourist destinations, as well as economic engines for their respective economies but also places to observe the human experience!
APPENDIX A