Rex

Vegas "Resort Fees" and Their Effect on Tourism

March 5, 2009

First it was “electricity surcharges” then “water surcharges”.

I’m not sure exactly when the fees and surcharges began, but I remember my first Vegas “surcharge” sometime in the early 2000’s.  They used to annoy the hell out of me.  There was no rhyme or reason, and I never knew when I was going to get whacked with the fees.  I would always protest them, and sometimes they would waive them, but more often they didn’t.  In my opinion, a hotel room without water and power is not a habitable hotel room.  It’s a given that it’s part of the room rate.  I also assume it will have a bed and some kind of furnishing.  This is pretty standard for a hotel room.

When they did make me pay the fees, I always did my part to justify the fees.  I left every light and TV on, and left the water in the sink running all day.  It probably cost them more than they made on the fees themselves.  They used to have little signs in the rooms that said “please help us conserve water and electricity” … even after you paid the fees.  To this day, I still see these signs in some of the rooms.

The unbundling of charges across the spectrum in every aspect of the American economy has become ridiculous, but nowhere has this phenomenon been pushed to the boundaries of sheer absurdity moreso than in Las Vegas.

The reason that I don’t typically bitch about the fees anymore is quite simply because I don’t pay them anymore.  I get free rooms here and there, and throughout the year I visit a large number of people in the rooms they book for themselves … but I don’t directly encounter or pay the fees.

I was really glad when I moved here so that I didn’t have to stay in hotels anymore.  I now have a weird quirk where I can no longer crap in an unfamiliar toilet.  When I hit age 35, I stopped being able to fire a torpedo unless I was fully acclimated to my surroundings.  I’ve not dropped a deuce in a public toilet in five years.  It’s a psychological thing.  Even when I stay in Strip hotels, I go home to launch one, then go back to the room.  I like my home because I love my toilet, and it me.  We have a special bond.

Anyway …

That being said, my interest in resort fees was recently rekindled by some reader comments.  One person relayed that he was whacked with fees at the Stratosphere, and another reader noticed that the brand new M Resort charges a “Resort Fee” of $25 not per stay … but per night.

Given that rooms at the M start at $54/night, that is an insane surcharge of 46%.  Forty Six Percent!

Advertising a room for $54/night knowing full well that it is actually $79/night is patently unconscionable.  It’s false advertising, and it is contemptuous of the very clientele to which they are catering.  I think people are getting sick and tired of the deception this town turns out.

These fees also prevent people from comparing room rates on an accurate basis.

Why not just start room rates at $79/night?

Because that would be honest, and Las Vegas simply will not tolerate honest and fair business practices.  Perish the thought.

Unlike some resorts, The M does disclose this fee when you book, but only when you are mid-way through the booking process.  I appreciate the fact that you get an Internet connection at the M, but I refuse to believe that it costs $750/month to provide access to a single room.

I think part of what has happened is that hotels have lost lucrative phone revenue, and are trying to make up for it in other areas.  Since everyone on the planet now has a cellphone, the ridiculous phone charges that used to exist have gone up in smoke.

Also, the whole phrase is made up.  “Resort Fee”.   It doesn’t make any sense.   What “resort”?  If you can’t book a room without opting out of the fee, the fee is part of the room rate.

Think about it. I could build a great hotel, advertise rooms for $5 per night, then add $200 “Elevator Fees”, “Hooker In The Bar Fees” and whatever else I could dream up.  But still, my official position would be that the room rate is only $5.

This is essentially what the properties are doing, albeit on a smaller scale.

I envision a day when all Vegas hotel rooms are free.  You pay only fees and surcharges, which are nothing short of profit padding.

Another problem arises if you book a room three months in advance.  Once you land in Vegas, it’s hard to exercise the “free market” and simply go to another hotel if you don’t agree to the fee.   They will hit you with a “cancellation fee”, and you may or may not be able to find a similar room for a similar price.

They have a captive audience for the fees.  Is this legal?

I’m sure Nevada Courts would uphold any ridiculous casino policy, but if put it through a Federal legal challenge (booking rooms across state lines) … I don’t think they would stand up.  Then again, this is the U.S.  where laws are made up on the spot, so what the hell do I know.

I do fear that this kind of nonsense is part of what is alienating the middle-class tourist even further.  I simply cannot believe that in this day and age, and in this economy, Las Vegas is still trying to find out  exactly how far they can push the customer.  That’s how we got in this mess in the first place.   Crap pay tables, higher table limits, crap customer service, $5 ATM withdrawal fees, fees here, fees there … the whole thing just seems penny-wise and pound dumbass to me.

I’m sure they are making some short-term money, but are people coming back for more?  The numbers are saying that perhaps they are not.

Also, it is quite possible that the person who shells out $25 for the “Resort Fee” feels compelled to get his money’s worth and hang out at the pool all day, or surf porn for hours on end, and ends up gambling $200 less per day.  This is a very real possibility.

It’s really hard to say exactly what these fees do for revenue, but there simply has to be some negative effect.  Even if it is simple ill-will, that is often enough to tarnish the experience of the visitor.  I think the town just needs to step up and be honest, reasonable, and forthright with the customer.

Last but not least … I don’t want to pretend to be some kind of armchair-quarterback “Vegas Expert”, but I actually wrote this back in early 2007 when addressing resort fees.  Hindsight is 20/20, but I don’t think it took a genius to make this observation:

Vegas seems to be trying to convince itself that it can do without the middle-class and the working-class tourist, but I think this is a major miscalculation.

I do think that it will eventually hit a tipping point where enough of the market will say “Eat Me” and take their dollars elsewhere, at which point we will need to go back to the customer-oriented Vegas that brought so many people here to begin with.

Or maybe American’s having gotten so used to grabbing their ankles and getting butt[fornicated] by Corporate America that nobody even notices anymore.

Time will tell, and I could be wrong.  Wouldn’t be the first time.

Looks like time told.

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Mixx
  • StumbleUpon
  • Tumblr

11 Comments »

  1. Written by tully on March 5, 2009 at 3:49 am

    Ah, don’t forget, that 25 bucks at M also gets you a paper, a candy on your pillow, and turn down service. For that much money, they probably ought to draw your bath and tuck you in.

    Red Rock and GVR only charge $24.99, and throw in a shoe shine. Also, airport shuttle service, which might be worth one day’s worth of fees. But just charge the shuttle users for the thing and be done with it.

    The whole thing is annoying and deceptive as hell.

  2. Written by LisaB on March 5, 2009 at 5:09 am

    Excellent post. As always, I love your writing style and insight. Thanks.

  3. Written by elvis on March 5, 2009 at 7:09 am

    The problem is bigger than the hotels resort fees – every city, county and state adds an extra ‘tax’ to hotel stay. In any other city, this is directed at business customers who don’t have time to care about the nickel/dime shake down. Vegas has lot of tourists that can not expense these fees.

    Every resort should advertise their entire price to the customer.

    The Four Seasons customers have access to MB pools. FS customers do not pay resort fees, MB customers do.

    Realize I’m paying more staying at the FS, but the point is that FS advertises their hotel and all amenities at a price and I pay that price.

    If the City, County, Hotel… is going to add fees – make it know or optional

    They also charge $25 to go to the gym – but then I have a choice.

  4. Written by Shelly Smith on March 5, 2009 at 12:14 pm

    Las Vegas is well known for its night life, resorts and casinos. After reading from your blog that the surcharges are increased in resorts we can easily point out that it will effect tourism as well as casinos in Vegas. The increment in the surcharges will surely curtail the number of tourists and only people belonging to high economic background will visit these resorts and it will surely ignore the middle-working class people.
    Shelly Smith.

    online casino

  5. Written by blueboar on March 5, 2009 at 2:18 pm

    Back in the day of the “energy surcharge”, I used to do the same as you did, Rex; leave every damn light and tv on as much as possible.

    Just tell me up front what my damn room costs. Or give me some choices. If I want to buy one of the hotel’s $5 bottles of water that they put in the room out of “concern” for my “convenience”, I’ll buy it. Same with a damn newspaper.

    Besides “Resort Fees”, there’s something else in the works out there that I think could annoy people a bit. It’s my understanding that the good people of Nevada and your Assembly have voted to raise hotel room taxes by about a third more.

    Yeah, that sounds like a hell of a plan during a recession. Stick it to the tourist just a bit more. Can we at least get a reach around?

  6. Written by Jim W on March 5, 2009 at 4:01 pm

    Hence the reason I refuse to stay at the Luxor again. The wife and I were there in September, and had a great time, we played enough (or lost enough that we had 7 nights comp’d, however upon check out I was informed of a $3.00 per day telephone surcharge…three friggin bucks a day to have a phone in my room whether we used it or not! You also don’t have the option for future trips of requesting a room without a phone because I asked.

    Anyway a great trip, a nice hotel and we were treated very well but there is not a hope in hell I will stay there again because I felt like we were being taken for suckers. We were back In Vegas in December and will be there again in May and July and all things being equal would have stayed and gambled at the Luxor, but I just can’t forgive them for the $21.00 they charged me for a phone. I hope they put it to good use because I’m guessing it cost them thousands in lost gambling revenue, not to mention not eating in their restaurants or buying from their stores

    Penny wise and pound foolish indeed.

  7. Written by joelmama on March 5, 2009 at 5:17 pm

    These surcharges are just another place where the de-coupling of service from prices is annoying. Another one that I hate I think even more is the automatic adding of a tip to a restaurant bill if the party is of a certain size. Was recently at a place that added 20% to the bill for this. They don’t make it obvious or point this out (hoping for a double tip maybe?). I told the manager that I wouldn’t return. I always leave a good tip of about 20% when service is good and even when it is bad leave about 15%. But I wannt to control this and not have it dictated. If they want to mandate an amount add it to the price of the food and tell us no tipping is needed, because we pay our servers what they are worth. Of course this will never be the case.

    Also Rex, have you launched a duece big enough that when you put your belt back on you had to tighten it up a notch?

  8. Written by RG on March 5, 2009 at 10:40 pm

    Another great piece on an obvious target, but one that needs to be addressed. It reminds me of when Bob Stupak paid a guy 1 million dollars to base jump off the Vegas World on to a large air filled landing pad. The guy ended up getting 10,000.00 after the 990,000.00 “Landing fee” was applied. Gotta love the Stup

  9. Written by Ben jammin on March 10, 2009 at 1:58 am

    Unless it is CLEARY and reasonably stated on web site at time of booking, resort fees can be waived. Threaten to contact your credit card company and have the entire bill disputed. This is a hassle foir the casino to pursue, so in most cases they will waive the fee. Don’t expect to get invited back, but then why would you want to go bnack to a place that rips you off at the onset.

  10. Written by Sam on March 16, 2009 at 1:51 am

    agreed. I refuse to stay at any hotel that charges these inane fees and if they do, I will contest them with my credit card company.

  11. Written by ROBERT on September 20, 2009 at 6:49 pm

    MONTE CARLO RAISE THEIR ROOM RATES AND 9.99 A DAY RESORT FEE. I WILL NOT BE STAYING.

RSS feed for comments on this post. TrackBack URL

Join the Conversation