MGM Resorts International has plans to raise casino fees at its Las Vegas Strip resorts.
When people visit any city that attracts a lot of tourists, they expect to pay a lot of annoying fees. Las Vegas had, in many ways, been an exception to that.
Until the past few years, parking at casinos was generally free, at least during the week. In many cases, it was free altogether because the goal was to bring people in.
Related: Las Vegas Strip casino signs another superstar singer residency
That has largely gone away, with free parking being reserved for people with higher tiers in the various casino loyalty programs. Having to pay parking fees can be confusing for visitors because most regional casinos offer free parking.
Parking charges, however, are just one of the small indignities that casino companies on the Las Vegas strip have been piling on their customers. In many ways, it’s a case of them doing it because they can.
Visits to Las Vegas have generally been strong, and people are used to paying higher prices for just about anything. On my last visit to Las Vegas, however, it did seem to cross a line.
I didn’t have a car, so parking was not an issue. Prices everywhere on the Strip seemed dramatically higher.
It has long been a tradition that bottles of liquor sold on the strip will cost roughly double, maybe even more than the same bottle in a liquor store. That’s the casino companies offering you convenience over pricing.
����Don’t miss the move: Subscribe to TheStreet’s free daily newsletter����
In some cases, however, it just seemed to go too far. The Starbucks latte that cost me a little over five dollars at home in southern Florida was more than double that at every Las Vegas Strip location I visited.
Now, MGM Resorts International (MGM) has plans to raise more revenue by increasing fees and trying to make money with lots of little price hikes rather than simply raising room rates.
MGM owns multiple Las Vegas Strip properties including Luxor.
Image source: Shutterstock
MGM is pinching pennies and raising fees
MGM executives spoke in late March at the J.P. Morgan Gaming, Lodging, Restaurant, and Leisure Management Access Forum. They were not subtle about their efforts to both make money and save money.
They openly talked about doing things like raising ATM fees and moving furniture between hotels rather than buying new pieces.
“If you’ve bellied up to an ATM machine lately, it wouldn’t surprise you to know that those fees have gone up. Some of it’s fee-based based on general volumes, and we were under-market in a couple of instances. We’ve positioned ourselves well, and we’re already seeing a return,” CEO Bill Hornbuckle said at the conference, Casino.org reported.
This, the website reported, is essentially MGM embracing the model that many airlines use. You lure in a customer with low front-line prices, then bury them in extra fees.
More Las Vegas:
- Las Vegas Strip Sphere signs another superstar band residency
- Las Vegas Strip casino closes country superstar’s residency
- Las Vegas Strip casino signs global superstar singer to residency
That’s not a model that endears you to your customers, which seems like a mistake in a city where every player is only a short walk from multiple other casino operators. But it’s one that MGM has embraced, with increased parking fees and rising ATM charges.
MGM has traditionally been cheaper than chief Las Vegas Strip rival Caesars Entertainment when it comes to parking and ATM fees.
MGM is investing in its Strip casinos
So far, these changes have not angered MGM’s customers. In fact, customer satisfaction has been high.
“Our commitment and dedication to guest [happiness] is reflected in our Net Promoter Scores, which set an all-time record for Gold Plus customers in the fourth quarter and for the year. I can’t say enough great things about our people here at MGM, who drive these great results day in and day out, other than simply, ‘Thank you,’” Hornbuckle shared during MGM’s fourth-quarter earnings call.
Raising fees is a quick way to turn your customers against you, but moving furniture around likely won’t anger people as long as it’s an upgrade.
Related: Las Vegas Strip Sphere signs rock legends for longer residency
We are investing in our business and the customer experience. The CEO shared some of the improvements made in the past year.
“In 2024, we continued a broad improvement throughout Bellagio, the renovation of all of our suites, new food and beverage offerings, as well as a refresh [on] premium gaming spaces. Additionally, the Cosmopolitan of Las Vegas was transitioned to MGM Rewards, and these regular capital investments into our resort operations drive continued guest visitation and increased spend,” he added.
