Question of the Day - 06 May 2013

An LVA source pointed us toward Cox Communications (which services many of the casinos, but Cox’s manager of communications, Juergen Barbusca, was somewhat loath to talk to LVA. "These are things that are arranged between Cox and the hotels we serve. These are not for discussion in a public [arena]." He likened buying large-scale Internet service to purchasing a car, with the hotel-resort playing the role of the dealership that is deciding which costs to pass on to the consumer, and which not. Hence, the policy varies from property to property, sometimes even within the same group. Note, also, that our recent inquiries have revealed that the resort fee often covers the in-room usage of one device only, i.e., if you and your traveling partner both wish to use your laptops in the room, one of you will be charged an additional fee on top of the resort fee.

For example, until last January, Main Street Station offered a free Wi-Fi "hot spot" on property for guests, then Boyd Gaming switched to Cox and axed the hotspot, so now Wi-Fi is only available in the rooms, for a flat rate of $9.99 for 24 hours (that's the same as pre-Cox, but the options of $1.99 for an hour, or $49.99 for a full week, have been discontinued along with the free "hotspot.") Unlike some other Boyd properties, Main Street Station does not charge a resort fee, so the choice to pay for Wi-Fi or not remains with the customer.

Asked for comment on its resort-fee policies, MGM Resorts International responded with what looked suspiciously like a form letter it would send to any guest. "Resort fees are common in many major U.S. and international travel destinations," it began. "Las Vegas hotel rooms offer top value for their room rates and resort fees."

"The resort fee saves guests both time and money by bundling commonly requested services and amenities in one low daily charge," MRI continued. "As far as Internet charges, Internet service is covered at most MGM Resorts' properties under the resort fee. The hotels have built a very complex, hi-tech infrastructure," the statement rationalized, blaming the supplemental fee on "costs involved in maintaining and enhancing the system, in order to provide ongoing dependable service to guests." As for dunning you for that in-room, land-line phone, "Not all guests are likely to use all of the services listed under the resort fee," MGM dryly noted. Most other casinos ignored LVA’s query, having already taken a fair amount of grief for "resort fees" in recent years.

Interestingly, your inquiry reminded us that, back in January of this year, we received an official press release from MRI, excitedly stating that under a new deal with Cisco Systems, the company was rolling out free property-wide Wi-Fi at all of its Las Vegas resorts (with the apparent exception of CityCenter). We quote:

"Admit it. We’ve all become completely reliant on mobile devices, including cell phones, laptops, tablets and smartphones. When traveling, whether for business or pleasure, the mobile devices are in hand and we expect to connect, regardless of where we are.

"Understanding the needs of the mobile user, MGM Resorts International (NYSE: MGM) collaborated with Cisco Systems (NASDAQ: CSCO) to create a high-density Wi-Fi system designed to enhance the guest experience. The two companies have developed the highest-performing wireless LAN in the industry, allowing travelers with multiple wireless devices to enjoy quality Wi-Fi. The new high-tech capabilities put MGM Resorts ahead of the curve with the ability to meet guests’ ever-evolving expectations...

"...Advantages of the program include 30 percent faster connectivity resulting in longer battery life used by mobile devices, automatic Wi-Fi connection that eliminates user hassle, and delivery of customized, relevant and timely offers and information delivered directly to guests’ mobile devices.

"The Wi-Fi rollout at MGM Resorts’ destinations in Las Vegas began with Bellagio, MGM Grand, Mandalay Bay and The Mirage, all completed at the end of 2012. Additional Las Vegas resorts, Monte Carlo, New York-New York, Luxor and Excalibur, will install Wi-Fi in 2013. The installations cover the low-rise public spaces – including pools, casinos, lobbies and restaurants – any place a visitor may wish to have mobile service. The Wi-Fi rollout for guest rooms has begun at MGM Grand, with completion expected in March 2013; installation for Mandalay Bay is scheduled next, and other resorts will follow.

"While visiting one of these resorts, guests receive complimentary Wi-Fi in the public spaces with the option to upgrade to higher bandwidth, ensuring that everyone has the mobile experience they want. Hotel guests and meeting attendees enjoy upgraded Wi-Fi."

Curious as to why we'd heard nothing further about this project, and how it might affect resort fees. (If a guest of the hotel -- or a non-paying guest off the street -- can wander into the hotel lobby and check their email for free, for example, would hotel guests still be obliged to pay the same resort fee for their room, when one of the chief amenities it's said to cover is Internet access? If the Wi-Fi in the room is "upgraded," what does that mean, especially if the free Wi-Fi everywhere else is already 30 percent better than the average Wi-Fi, and so on.)

So, we placed some calls to different staff at the various properties mentioned in the press release, and here's what we were told:

• MGM Grand -- Reservations -- we were informed, contrary to the press release, that this property does NOT have resort-wide free Wi-Fi and that it's only available in the rooms.

• Bellagio -- Concierge -- confirmed that the property has resort-wide free Wi-Fi, which previously it did not. The same $25/night resort fee remains in place.

• Mandalay Bay - Front Desk - told us Wi-Fi is included in the resort fee for guests and that non-hotel guests can access it in the lobby, but for only for a maximum of two hours

• Mirage - Front Desk - we were told it's included in the resort fee and that your last name and room number are required to access it. We were also told that it's not resort-wide but available to non-guests in the casino only, and if you sign up with an email address.

• Monte Carlo - Front Desk - there's still no Wi-Fi in rooms, only cable (included in resort fee). Free Wi-Fi for anyone is available, but only on the first floor, apparently.

• New York-New York - Front Desk - currently free Wi-Fi is available, but to hotel guests only (in-room and on casino floor). They're apparently looking at adding resort-wide free Wi-Fi to anyone beginning in Nov. or Dec.

We sent a query to MRI asking for clarification about this feedback we received, and how it ties in with the press release, but we have yet to hear anything back. We'll keep you posted as and when we do.

Rather than build "complex [high]-tech infrastructure," some casino companies look to single-source outside providers and then pass the cost on to you. In the Vegas area, the vendor of choice is believed to be Cox, dominant in both cable-TV and Internet-access provision. "We provide connectivity to the individual hotel property. We’re a back-end provider … a segment in the chain of providing a business to the consumer," explained Barbusca, speculating that some of the larger casino companies might be acting at as their own ISPs. In any event, he said the service-and-cost equation could not be broken down as simply as it is for a residential bill.

• "I wanted to expand on the Q&A re in-room phone service. Last year I forgot my cell phone, so to call home each day I opted for the in-room phone (I'm Diamond, so I figured worst-case scenario I would pay with points). Well ... for four calls home to Austin, totaling 29 minutes, my phone bill was $34.00 and change!!! What's worse, I could not use points to pay the bill! I spoke to my host, who looked into it in depth ... and you are correct about Cox Communications: The hotels under contract with Cox literally have to stick it to the customer, due to the contracted price THEY are paying to the provider. Makes you sick. Needless to say, I've not forgotten my cell phone since! By the way, I could have opted to use one of the many pay phones still to be found in the hotel lobby. At $1.00 per three minutes, as indicated, I would have paid only $9-10 by using the casino-level pay phones."

• Way back in the day, before I worked for LVA, I was a freelance TV producer based in the U.K. and was a guest at the Rio for no less than five weeks, while filming a documentary series for Discovery. My job entailed researching and coordinating all the storylines, booking guests, gaining access to locations, scheduling shoots, and keeping in touch with the production company back home in London. Needless to say, this entailed a lot of phone calls -- in fact, I spent the major part of every day on the phone, and when the time came for me to check out, my phone bill was 35 pages long! Fully aware of exorbitant hotel phone charges, and how dependent I would be on making calls from my "office" (i.e., my room at the Rio), my production manager had equipped me with a telephone charge card which, in spite of being a pain in the proverbial for me to use (I had to dial a 16-digit credit card number, in addition to dialing '9' for an outside line, plus a five-digit international dialing code, before actually inputting the digits for my London office, for example) I stuck with it religiously, believing that the card was taking care of all my phone charges. Not so! At check-out, a very embarrassed front-desk clerk at the Rio presented me with that 35-page bill, which totaled TWO THOUSAND DOLLARS! Yup, that comprised $1 for every time I'd dialed an outside line, regardless of the fact that the call itself was being charged to a card. Apparently I'd clocked up no less than 2,000 business calls during my stay (which came as no surprise -- let's say I was in no danger of getting any sunburn on that project). "This was back in 1997, prior to the Rio's purchase by what was then Harrah's Entertainment, and in credit to the hotel, I must explain that they were absolutely horrified and waived my entire phone bill, for which I -- and my budget -- were extremely grateful."