Las Vegas remains the casino gambling capital of the world. Still regarded as a top US travel destination, gambling is not the only source of revenue these days. There is the added-value of dining and entertainment along with the excitement of real money casino gambling. However, a much less popular revenue source are casino resort fees. Learn more about the specific costs per hotel.
Las Vegas Casino Resort Fees Continues To Increase
Major airlines are reaping added profits from extra airline fees for checked bags, early boarding etc. The hotel resort industry is following suit with added fees for things such as Wi-Fi, pool access and other amenities. The problem with these types of resort fees is that they are mandatory. Guests have the fees tacked onto their bill whether they using these amenities or not.
Hotel resort fees are common in big cities such as New York and San Francisco. A recent report on US Today that was reposted on Yahoo is calling out Las Vegas for expanding this questionable pricing tactic. Some of these added resort fees top $45 a night at certain hotel properties.
Unfortunately, these fees are being built into the entire revenue and profit formula to appease company stockholders. Hitting revenue projections are becoming more important than filling rooms. Most industry analysts agree that resort fees are here to stay.
MGM Resorts International just boosted their resort fees an addition $6 on Aug. 1. The increase brings the total daily resort fee to $45 at ARIA, Vdara and Bellagio. This fee is added directly to the room rate. Earlier this year, Wynn Resorts increased their resort fee to $45 at Wynn and Encore.
MGM spokesperson Brian Ahern was quoted as saying:
“We are constantly evaluating prices to ensure they properly reflect the business landscape and the services and amenities they support.” Chad Beynon is a senior analyst at Macquarie Group Limited. His take on the situation is as follows:
“But it is mandatory. So even if you don’t use those products you still have to pay a $30 to $50 fee that is not being advertised when you book your room.”
As an example of this deception was highlighted in a one-night stay at MGM Grand. The base rate on the room was advertised at $145 a night. The actual cost for that room was $206 with added taxes and a hefty resort fee.
These extra fees add millions in revenue to large hotel resort properties over the course of the year. MGM is the largest employer in the state of Nevada. It is estimated that an extra $5 in room fees would generate an additional $50 million in revenue.
Beynon went on to add:
“MGM has company-wide goals to reach certain financial targets for 2020 that are extremely important for them to hit. If you could add another $50 million per year with resort fees, that is meaningful for a company to hit their goal.”
At least one top Las Vegas resort executive has voiced concern over rising fees. Caesars Entertainment CEO Tony Rodio believes there could be repercussions from targeting tourists with resort fees. The company recently announced that there are no plans to raise resort fees at this time.
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