When and Who Started the Hated Resort Fees?

I have a good memory but it's short. When and who started the hated resort fees?

And

What percentage of total room revenue is collected by the casinos for the resort fee?

It’s difficult to say when the first resort fee was imposed in Las Vegas.

Station Casinos is generally credited (if that's the correct term) with being among the first to launch the initial salvo in the early 2000s. In those days, they called it a "fuel surcharge," but guests also paid a mandatory fee for phone service, regardless of whether or not they'd placed any calls from their hotel rooms. The company was subsequently the defendant in a class-action lawsuit, along with the Hilton, Wyndham, and Starwood chains, and was forced to send compensatory coupons to 940,000 guests who'd stayed at Station properties between April 1, 2001, and April 4, 2004, not because of the fees per se, but because they weren't clearly indicated to guests at the time of booking or prior to checkout.

David Schwartz, director of UNLV’s Center for Gaming Research, pegs the rise of resort fees as a countermeasure to the slowdown in travel that occurred in 2001-02. They covered everything from wi-fi access to use of the gym. Whether this constituted added value remains highly debatable, as some of the "amenities" were already covered in the cost of the room.

The last of the majors to bow to charging resort fees was Caesars Entertainment, which did so in the first quarter of 2013.

As for the percentage of room rates that resort fees account for, former Caesars Director of Corporate Communications Gary Thompson told us a few years ago, "We break out gaming and hotel revenues in our 10-K and 10-Qs, but not resort-fee revenue. My guess is it's in the low single digits," as a percentage of revenue.

It’s much the same at Boyd. "I’m unable to provide a specific estimate on how much revenue is generated from these fees, as we don't break out revenues beyond a few general categories (gaming, F&B, hotel and ‘other’)," said David Strow.

So you might say that resort fees are a small percent of a small percent. We can't recall resort fees ever being reported as a line item. Casinos prefer to concentrate on gross room revenue – into which resort fees fall – and revenue per available room (RevPAR).

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Comments

Bob Feb-26-2025

I call BS on their responses

If it's a line item on your Folio when you check out, they know the numbers! probably right down to the penny.

Jeffrey Small Feb-26-2025

Double BS

Agree with Bob--since I see and receive offers for "free rooms" with fine print that you are obligated to pay the resort fee for the "free" room, the revenue generated from the offer is 100% based on the resort fee.  The hotel does not know how much revenue is based on that fee?  Ridiculous.

Randall Ward Feb-26-2025

resort fees

In summary, they've been here forever and aren't going away.

LynGHS Feb-26-2025

Agree with Bob

Of course they know the percentage of revenue that is brought in by resort fees... and if they really don't, their bean counters are as bad as their marketing departments.

Eileen Feb-26-2025

Triple BS

As mom would say, "what a crock."

DeltaEagle Feb-26-2025

A lone voice

I may be the lone voice in the wilderness but I am tired of hearing about resort fees. We all know about them none of us like them.  We check in and get stiffed for an extra 50 bucks on the room cost unless we are staying at one of the three or four truly high-end hotels and paying rack rate that 50 bucks is probably one of the smallest cost items of the trip we leave the registration desk and go put $100 bill in a slot machine Which is two days resort fees at the most expensive rate. We need to complain about payback percentages 6/5 blackjack and other items I would be happy to pay $100 a day for resort fee at a casino that had all 3/2 blackjack single zero roulette And some decent slot machines

David French Feb-26-2025

Mandatory Resort Fees

We just got back from a nine night stay in Vegas. We were charged for two nights at the Gold Coast at the player rate and with a MANDATORY $45 per night resort fee. The last two nights were free, (an almost true comp). But then we find out the MANDATORY resort fee also applies to co.ped rooms as well! So after 4 nights at Gold Coast we moved over to a Stations casino and received 5 nights, all comped and no resort fee. I am sorry to say that Boyd Casinos has just lost a long time customer!

Raymond Feb-26-2025

Boyd Resort Fees

David--I stayed at the California (a Boyd property) in December on a comp and wasn't charged a resort fee.  So it may be a property-by-property thing, or different comps.

Louis666 Feb-26-2025

resort fees?

I stay at Four Queens. You mean there are actually places that charge resort fees?

MannyB007 Feb-26-2025

Coincidence?

I don't know if this was intentional, but one of the things resort fees also do, is places hotels higher on the list of third party travel sites such as Travelocity, Priceline, Hotels.com, etc. Since the resort fee is not part of the room charge, it falsely shows up as cheaper on these sites when filtered by price from lowest to highest on the site search. Coincidence? I personally don't think so.

MannyB007 Feb-26-2025

In Response to Raymond

In response to Raymond, Boyd resorts do not charge resort fees when receiving comped rooms. Caesars, and MGM do charge you for the resort fee even if your room is comped. I'm not sure about the One Club of the Steven's properties (The D, Golden Gate, and Circa).

Hoppy Feb-26-2025

Free

With Resort fees, you now get 'free local calls'.

Craig Hosey Feb-26-2025

Craig

resort fees were implemented because of all the travel apps people use like priceline, travelocity, hotels.com, etc.....the hotels dont have to share their "fees" with these entities.

Michael Taylor Feb-26-2025

Resort fees

If they don't know what their take is for resort fees, why keep raising them when they cut back or there is no increase in what we get?

James Sweat Feb-26-2025

Resort Fees

The SouthPoint and The JW Marriott(Rampart) do NOT charge a resort fee on a comp room.

Lucky Feb-27-2025

comp fees

I get my rooms comped at all Caesars properties.  I have never had to pay a resort fee on a comped room.

LynGHS Feb-27-2025

In Response to Manny

I have stayed at MGM properties many times. Always comped, never paid charged a resort fee.

Frank Nicosia Feb-28-2025

Comp nights

As a few indicated….. no fees with comped nights at Bellagio or Wynn, for many years.

96BPD Mar-15-2025

Club One properties

D/Circa/Golden Gate don't charge resort fees on MOST comp offers, but the lower end tiers they will, but it will be clearly disclosed in the offer.

Question of the Day - 26 February 2025

Comments