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Question of the Day - 18 February 2024

Q:

Do hotels actually make money off the honor bars in the rooms? I think I took something out of one maybe once in my 20 years of going to Vegas.

A:

Okay, first, a definition of terms is in order. 

In some hotels, an "honor" bar, a.k.a. "honesty" bar and "honor-system" bar, is one that's in the lobby or lounge or on an executive or concierge floor. It's unattended by staff, so guests help themselves to drinks and snacks and are on the honor system to leave an appropriate amount of cash in a lockbox (with or without stated charges), or pay via app, or make a note of what they consume to report to the front desk on checkout. Honor bars are typically found in more upscale and boutique hotels and are intended to make guests feel more at home; their use has become much more prevalent over the past decade or two.

Sometimes the mini-bars in hotel rooms are called honor bars, but that, at least to us, is a misnomer, or at least anachronistic. It used to be that hotels provided a menu with items and prices and you marked down what you consumed, again on the honor system. These days, however, no honesty is required in the use of most hotel-room mini-bars or stocked mini-fridges; in general, they either have electronic sensors that record when a drink or snack is removed from (or even moved around in) the mini-fridge or the housekeepers take inventory when they clean the rooms. Perhaps a bit of honor comes in when you buy an item, but don't have to shell out for it on the spot; still, you're sure as shootin' responsible for paying for it at the end of your stay. 

Some hotel rooms have "honor bars" without mini-fridges, selling such countertop items as bottled water and chips, nuts, and candy bars. 

In others, mini-fridges are stocked with beer, wine, mixers, and cold-food items for sale. Some have a combination: a stocked mini-fridge and a bar offering water and snacks, along, perhaps, with toiletries and sundry items that guests might have forgotten to bring or find they need during their stay.

Still others offer empty mini-fridges for the use of guests to preserve their own food. Sometimes these are included at no charge in every room; other times, you can rent one for a fee, generally $10-$20 per day.

We've found that the cost of drinks from the true honesty-system bars in lobbies and lounges is slightly less expensive than they would be from a staffed bar, since the hotel doesn't have to pay an employee. We can't say for sure if hotels make any money from these, though we suspect that it's not a high-priority line item on the profit-and-loss statement; some guests probably abuse the system, but the kind of hotel that offers an honesty bar no doubt makes its money in many other ways and can write off the occasional free drink. 

On the other hand, stocked mini-bars in hotel rooms do, indeed, make money for the hotel. Have you seen the prices charged for a can of Coke and a small bag of salted peanuts?

Here's the mini-fridge menu from a hotel in Laguna Beach, California: snack mix/potato chips/mini-Snickers $12; gummy bears/chocolate almonds/chocolate bar $15; iced coffee/can of soda/tonic water $10; beer, wine, Champagne, and hard liquor $10-$190. A 22% "service charge" and sales tax are tacked on.

Also, you can request the mini-bar be removed from your room -- this hotel charges a mere $100, plus applicable fees and taxes.

Yes, Laguna Beach in Orange County is a pricey destination, so this menu is possibly an extreme version, but the markups for mini-fridge items are usually stiff and often equally as steep.

As for whether or not in-room honor bars/mini-fridges make money for hotels, we believe these prices speak for themselves. But who pays them? 

It's certainly true that savvy travelers don't go near the mini-fridge items, but what about alcoholics? Or kids who don't know any better or those who try to sneak items, hoping against hope that their parents won't be facing a hefty bill on checkout? Or how about if the hotel is in the middle of nowhere and your choice is the mini-bar, or room service, or starvation? Or how about a traveler who weighs the "cost" of getting up, getting dressed, getting into the car, getting to a supermarket, then reversing the order, for a snack or drink and finds that the mini-bar pencils out? Or people who aren't really sure what something should cost and can't go anywhere else to compare prices? Or guests who are on vacation and the mini-bar convenience is a luxury they can afford at the time? Or just plain rich people who couldn't care less what something costs? Or business travelers on expense accounts? Or ... or ... or ...

Whoever consumes items from the mini-bars and why, the hotels definitely make money. Not only are the markups higher than normal retail prices, but a hotel like the MGM Grand, with 5,000 rooms, buys in such quantities (and has a default setting in general on "gouge") that the profits are no doubt substantial. 

 

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Comments

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  • Kevin Lewis Feb-18-2024
    The prices sure ain't mini
    Maybe they should be called "dishonor bars," as any company charging $12 for a Snickers bar has no vestige of shame whatsoever.

  • Bob Feb-18-2024
    No Honor
    If there is a Mini Bar and or stocked items in your room, you need to check your Folio real close when checking out. even if you didn't go near the stuff! and those 2 bottles of water next to the Ice Bucket...  may be a nice complementary gesture, or they may be $7ea.  There is a National low buck Motel chain that we've used many times on road trips. they automatically add a $5 charge for the in room Safe. you have to ask to have it removed at checkout. imagine the money they bank from that $5 upcharge on each nights stay!
     

  • Mike Feb-18-2024
    Smiths on Maryland Ave
    As a conventioneer traveling to and from downtown and the strip, the Smiths on Maryland has become a regular stop for me.  The Four Queens downtown has a small fridge in every room that can fit half gallon OJ/Milk along with some fruit and other snacks.  Walgreens is more expensive but still would work over paying as you go.  That is a sure fire way to have your money crushed in LV.  Throw in some good 2 for 1s out of the LVA Coupon book and you have save a few hundred on food and drink over the course of a week.  

  • Kevin Rough Feb-18-2024
    Scam
    I checked out of a decent-named hotel in Orlando and noticed a charge.  It was only around $5.  When I called to inquire I was told it was because I had used the mini-bar.  That hotel had a key to the minibar which I had refused.  When I said I had refused the minibar key so that wasn't possible, she removed the charge.  I now wonder how often these small charges go through unnoticed.

  • Edso Feb-18-2024
    Smith's on Maryland is the Bomb, Yo!
    Totally agree with Mike.  The Smith's on Maryland and Sahara is a great spot to stock up on groceries for an extended stay of 5 to 7 days, especially if you have a fridge. And then hit Walgreen's by the LVAC (Gym), for your adult beverages, if you didn't get them at Smith's.  There is also an Albertson's on Maryland and Flamingo, and a target across the street. 

  • Jeffrey Small Feb-18-2024
    Another Ripoff!
    Agreed, your first stop should be a grocery store when you arrive for an extended stay in LAS.  It's not just the mini bars where the hotels gouge guests.  The gift shops are not a good place to purchase snacks or basic necessities.  I used distilled water for my CPAP machine.  I was surprised to find gallon containers for sale at Bally's gift shop--wow, no need to go to the supermarket?  Not so fast--the price for a gallon of distilled water was $ 9.50!  The price at a supermarket is usually about $ 1.49 or at Walgreens $2.00.  That's a 400% markup at the hotel.  And they wonder why we feel ripped off?

  • jay Feb-18-2024
    Buy it now
    When eBay was really an auction site. Not an Amazon wanna be.  Some auctions had a buy it no option which used to be stupid expensive. But if you “want it now” you pay the buy it now price. That’s what these mini-bars are.. if you can’t control your urges you pay the price. 
    
    The bigger concern given the price of the items is the age the items. Is that $12 snickers 12 years old, 4yr old coke etc. I can’t imagine the turn over is that high based on the prices nor could I see the hotel paying particular attention to anything other than ensuring what was taken was replaced so they could sell more.
    

  • Packrat1 Feb-18-2024
    Grocery Tip
    When we go shopping for supplies in the room ,we empty our suitcase. Then fill it up with groceries much easier to schlep the roller bag up the elevator and down the long halls to your room. 

  • David Miller Feb-18-2024
    Always Check
     Whenever I check into my room I check the contents of the minibar and associated refrigerator. If I see any empty spots/slots, I then go to the check in desk and tell them what I found -showing them pictures I took on my cell phone. When checking out, in person, I ask if there are any charges shown for the mini bar - if so, I ask them to remove them. Then I get a receipt showing what real charges I have incurred during my stay.

  • Dan Vanminnen Feb-18-2024
    Frugal VP software for downloading 
    Hey guys, I live in Denver, Colorado and I was in Vegas the week before Super Bowl, and I stopped in and I got the coupon book. What a great value.  I also picked up the frugal gambler book by Jean Scott and I am really enjoying that as I play a lot of Video Poker from time to time. I have a question concerning the frugal VP software for downing in the book, she talks about the software from Jim Wolf being the one that I should use and I’ve searched and scoured through the website and Internet and can’t seem to find it. However, you do have software by James Dunbar.  Would it be possible for you to provide me , a link of sorts or guide me to where I can purchase the best software program that helps me play Video Poker?

  • Kurt Wiesenbach Feb-18-2024
    VP Software
    The software can be found at WolfVideoPoker.com

  • O2bnVegas Feb-18-2024
    @Jay
    I confess getting items from the mini-bar in certain circumstances, i.e. middle of the night and craving a Coke or something.  Preferable overall than going downstairs.  BUT, the chips, cookies, etc. are as often as not to be stale.  I've unloaded (tho nicely, LOL) about that on a survey or two. I imagine turnover of items like that to be low, maybe years.  
    
    I've been mistakenly charged for mini-bar items and other things.  Always a call to front desk takes care of it.  Never had them hassle me over a disputed charge.  I do always check my folio on the TV every day.
    
    Candy

  • Debra Grimes Feb-18-2024
    Charges to convenience bar
    RE: kids taking things from the mini bars without parents' knowledge. On a vacation with our kids years ago, one son tried to watch the trailer for a porn movie (twice) thinking he had canceled it before the charges kicked in.  But no, he hadn't. It took me a few days to unravel that mystery, and when I confronted him, he confessed...and paid me back the $20 charge to our hotel bill. Lordy...

  • steve crouse Feb-18-2024
    Mini Bar
    My first experience with a mini bar was at Foxwoods. On the way down from North Maine, through New Hampshire, I had bought a fifth of whiskey and a couple bottles of soda water for my nightly nightcap.
    When we checked in, I decided to remove a bottle of wine from the minibar and put the two cans of soda in it's place. The final bill had a $45 charge for the wine, even though I had replaced it before we left. A couple of calls and the charge was dropped. Live and learn, I guess.

  • Gregory Feb-18-2024
    VP Software
    WolfVideoPoker.com has been defunct for YEARS.  Many of the software packages that are still out there haven't been updated for ages and don't run well on modern computers. These days, outfits like videopoker.com want to sell you subscriptions that require a monthly or annual fee.  You play the games online.  LVA used to have a software program that was endorsed by Bob Dancer, but I believe that it required Adobe Flash, which is also now defunct.  Zamzow WinPoker might be worth a look.  I've used it for years.  It has fewer games than WolfVP, but at least it's still available.

  • Lucky Feb-19-2024
    Mini nothing
    Was at Paris Las Vegas a few weeks ago.  They have a Keurig coffee machine.  But the pods and condiments are in a box on the stand which has a power cord running from it.  I called and asked how much that was (I was comped, but curious).  It was $14 for 4 pods and the rest.  So I opened it up and made a couple cups.  For the 4 days we were there, they did not replace the box of pods.  I had to catch the room attendant and get another one.  She had to mark it up on a tally sheet first.  I did not get charged for it, but if you are not comped, they will for sure get you.