Thursday, 1st August 2019, saw MGM Resorts increase resorts fees of three of its Las Vegas strip properties after being steady for over a year. The $6 increase has been placed on Vdara, Bellagio, and Aria where the resorts fee will now be $45 from the original $39. The total resort fee will be $51.02 on the three properties after taxes.
The increase is based on local and nationwide market prices and the $45 fee now matches those already placed at Wynn Las Vegas, The Pallazo, Encore, and The Venetian.
Speaking on the increase, Brian Ahern, MGM spokesman, said,
‘We are constantly evaluating prices to ensure they properly reflect the business landscape and the services and the amenities they offer.’
Lawsuits on the use of resorts fees
Last month saw the talk of the possible resorts fees increase surface. MGM Resorts came out and rubbished the rumors at the time. Eventually, the fees increase came to be with no official announcement made on the same.
Hotel brands have faced various lawsuits in the past months over the use of resorts fees. The District of Columbia attorney general filed one against Marriott on July 9th while still in the same month, the Nebraska attorney general filed another against Hilton Hotels. Under the lawsuits, complaints allege that the companies are increasing a portion of daily rates through unavoidable charges.
Las Vegas properties have included local and toll-free calling, fitness center access, daily newspapers, boarding pass printing, Wi-Fi, and notary service in their resorts fees.
Increments over the years
Over the years, there has been an increase in the fees. Vdara, Bellagio, and Aria had their resorts fees increased to $39 by MGM in March 2018. Other mid-tier properties like the MGM Grand, The Mirage, and Mandalay Bay saw their fees increased to $37. There was an increase of $5 seen at Luxor and Excalibur which shot from $30 – $35. Circus Circus, on the other hand, had its resorts fees jump up to $30.
The increments were not received positively and received massive backlash as they came a few months after the October 2017 mass shooting and came at a time the Las Vegas community pleaded for support of the town from the tourists.
On the Las Vegas vacationers side, many of them don’t see the removal of free parking and the escalating fees as customer-friendly initiatives. A Southern Nevada regular visitor said that due to the add-on fees, his golf group had opted to seek out Airbnb properties as they could no longer stay in the casinos.
Visiting MGM Resorts casino in Las Vegas this month is costlier as compared to last month. Investors, however, may be pleased with the resorts fees as they tend to deliver better net earnings. The second-quarter revenue won by MGM Resorts was $3.22 billion which was a 13% increment.
There is the talk of MGM considering the sale of Bellagio and MGM Grand and analysts have said that the combined properties could be sold at a price of about $7 billion.