Will the Strip Casinos Ever Revert to Their Old Bargain Ways?

Is there any movement by locals and visitors like me to stop the high resort fees and parking fees? I would join in a minute. I love the Strip, but it's too high to stay there anymore.

We receive this question, in various forms, all the time.

We last answered it on February 1, with a question about the chances of paid parking going away. It wasn't quite an unequivocal no; we hedged our bets a bit with this conclusion: "We’re not saying that in a major downturn, the casinos might not raise the gates and allow free parking to incentivize visitation. But we see zero indication of that happening in this economy."

In the current April issue of the Las Vegas Advisor newsletter, Anthony Curtis weighed in on the issue. We rarely run excerpts from LVA, especially the current issue, but we're making an exception this month, since Anthony answers this question so thoroughly and we wanted to show non-members the kind of perspective that they'd receive by joining -- to say nothing of the greatest Vegas coupon package available.

Take it, A.C.:

Is anyone still wondering if the casinos intend to change their stance on paid parking? Or maybe ease up a smidge on resort fees? If so, you haven’t been paying attention. Not only are they not considering rescinding/reducing fees, they’re increasing them. Here’s the resort fees and paid parking box score from last month alone.

MGM Resorts International kicked things off by raising resort fees at 10 of its properties. The RFs were raised by $2, to $37 per night, at Delano, MGM Grand, Mirage, Signature at MGM, Mandalay Bay, Monte Carlo, and New York-New York; by $2, to $30, at Circus Circus; and by $5, to $35, at Luxor and Excalibur. There was no change at Bellagio, Vdara, and Aria, where RFs are already $39. MRI CEO Jim Murren commented, “We are lagging the market. Caesars properties have higher resort fees, which is a great change, since they started with no resort fees not long ago, but welcome to the party.” Funny, right? Well, maybe to him.

MRI wasn’t alone. At the same time, Station Casinos raised RFs at Red Rock Resort and Green Valley Ranch by $4 to $39 per night. And a week later it was Sands Corp.’s turn, as Venetian and Palazzo raised their daily rate by $6. Already tied for highest in town before the increase, their RFs now top the heap at $45 per night. The two casinos have raised their fees by $20 in the last three years; however, both continue to be among the few Strip casinos that don’t charge for parking.

Caesars probably wanted to join in, but it had already raised RFs by $2 to $5 in February and its properties now have fees from $30 to $39 per night. Instead, Caesars raised parking fees. At Bally’s, Cromwell, Flamingo, Harrah’s, The Linq, and Paris, the rates were raised by $2 to $9 for 1-4 hours and $12 for more than four hours. Rates at Caesars Palace are up $2 to $12 for 1-4 hours and by $3 to $15 for more than four. Parking remains free for stays of less than one hour and is free for any duration at Planet Hollywood.

Then, for good measure, Las Vegas Premium Outlets North, the factory-direct shopping mall near downtown, announced that it had instituted paid parking.

Come again?

Yep. The fee is $5 for out-of-state visitors to park at the Outlet Mall (no charge for locals). Owner Simon Property Group released a statement saying that the fee was implemented “because of customer demand and to improve the customer experience.”

Uh huh. We're sure customers were clamoring to pay for parking to go shopping at the discount outlet. What's more, having to pay to go to the second-rate mall would certainly improve the experience for me. And since that’s the case, why not charge locals? Don’t they deserve an enhanced experience too?

Prices go up. That’s a reality and you’ll read about it happening more than usual in this month’s issue. But you’ll also read about alternatives. Many of those alternatives can be found at the locals casinos and definitely downtown, and I think the public is starting to gravitate toward them. The steady increases in downtown’s monthly gambling win are due to higher play volume, which comes with escalating visitation.

Will the reverse take effect on the Strip and lead to reversions of policies? It might, but indications are that it won’t for some time. For the average visitor, it’s obviously not a big enough problem to make them change their habits, which is why the fees are where they are. However, anyone who follows our consumer polls on LasVegasAdvisor.com (particularly the current one as we go to press on transportation habits) knows that LVAers aren’t average visitors; we might be a statistically insignificant group compared to overall visitor volume, but the distaste for resort fees and paid parking is striking.

If you’re irked by exorbitant resort fees and parking charges, then go where they ain’t. You don’t have to stop coming to Las Vegas, but you might have to stop hanging out on the Strip … and at the outlet mall.

Thank you, Anthony. And here's a photo of a Strip demonstration against resort fees.

No part of this answer may be reproduced or utilized in any form or by any means, electronic or mechanical, without the written permission of the publisher.

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Comments

[email protected] Apr-19-2018

Resort fees for food?

What I mean to say is that some of the hotels now offer some form of "credit" for restaurants or merchandise which offsets the "pain at the desk" of paying resort fees. To offer a free breakfast buffet, for example, to guests costs them very little in the scheme of things. Wasn't one of the hotels offering a free room service breakfast a while back? "Free" is a dubious word in Vegas, as almost everything comes with a built-in tip. Also, if you think you gambled enough, stop at the slot club. Sometimes they will wave or reduce the RF based on your "action" at the casino! (Also I recently got "BOGO" room rates from TI's promotion. RF fees not included, of course)

yukondon Apr-19-2018

Yukondon

Resort fees, paid parking, 6-5 Blackjack you won't see me in Vegas anymore!

Dan McGlasson Apr-19-2018

Casinos aren't dumb!

If you were  casino owner, and you could have multiple 6/5 blackjack tables that are full, VP that pays less than 96%, rooms full of resort fee paying customers, and parking lots full of paying patrons, wouldn't you continue to jack up the rates?

The "informed" gambler will know to avoid those establishments.  Let the "fish" get eaten - for my money the friendly service and playing experience at off strip local casinos (Stations and Boyd come to mind) far outweighs the strip experience.  Yes, the house still has an advantage, but it does not hurt as much when the management shows that they still value your business.  

Or, stay at the Rio, enjoy free parking and very friendly service, and then walk or take the Tropicana bus to the strip.  Ya gotta play the system!!

Jackie Apr-19-2018

How timely

An out of state friend of mine just emailed me yesterday cancelling her Las Vegas visit along with her friends for a birthday party visit due to resort fee increases and parking fee increases and opted to visit an Indian casino with facilities rivaling the best of the strip instead stating the hundreds of dollars saved.  Oh well strip, being greedy is always followed by being needy.

cjen Apr-19-2018

Why go to Vegas

Very well written article.  The reason why I went to Vegas for years and sometimes 6 times a year was to gamble.  I lost tens of thousands of dollars over the years.  I was a casino's dream client.  I now stay home and gamble in Indian Casinos.  Last two years I lost over $60K. I have everything Vegas gambling has, without 6/5 BJ, panhandlers, bizarre street performers, resort fees, paid parking, timeshare hawkers, and con artists.  I receive more comps than any Vegas casino, example, this past week I drove twice, 220 miles round trip to receive over $600 in free play, $250 in clothing apparel, $100 in gas, $100 gourmet meal, free rooms with $150 food credit.  Why go to Vegas?

Larry Brill Apr-19-2018

No Limit In Sight

Just returned from a recent trip.  We used Lyft for the first time while there - forgoing our normal rental car which makes a cheap trip otherwise expensive.  But our Lyft driver, who owns his own business and becomes a Lyft or Uber driver on his way to meetings or at lunch, told us that occupancy rates in Vegas are staying at the 97% mark.  Our similar questions about the effect of resort fees and paid parking were answered by him saying nothing will change (and will possibly get worse) until occupancy starts dropping.  We have stayed off-Strip, non-downtown for years now and are going to the Smith Center for entertainment - the only ways we seem to be able to enjoy Vegas lately...

Edmond Apr-19-2018

Fees

We used to go to Vegas 4 to 6 times a year and combine business with pleasure. Now its only twice a year. Vegas is starting to price itself out of the trade show market. They are building more exhibit space, but planners are starting to think twice due to the skyrocketing prices for the attendees. Believe it or not, one of the smaller shows I attend is moving back to Chicago! They say, its cheaper then LV now. I love Vegas, but the corporations are ruining it in the long term.

[email protected] Apr-19-2018

Reno Anyone?

I was surprised when I looked at offers through URComped, for Reno and South Lake Tahoe.  Both were far better than anything I would be given in Vegas and unlike Vegas both places are natural wonders.  So there are choices, including cruises and international play opportunities.

Diane Crosby Apr-19-2018

Downtown resort fees

I was surprised to see that the Golden Nugget has a resort fee of $39. I received an offer for a package deal, and there was an (*) saying "does not include $39 resort fee." Are they all going crazy?

Doug Bergman Apr-19-2018

LVA can help!

I am a contrarian in regard to resort fees in that (1) I am able to perform addition, and (2) I recognize that the total cost might even be higher without them, since hotels have to offer the lowest available price through resellers like hotel.com.  That said, may I suggest to AC and company: One thing you might do to help increase transparency is that when you publish your room rate surveys in December and July (?), please INCLUDE the resort fees.  I don't think the comparison is all that instructive if the resort fees are non-optional.  You could also note in a table the added cost of parking, and perhaps an example of the perks you could get by booking through the hotel website.

[email protected] Apr-19-2018

Resort fees/parking

I find this discussion very interesting.  Obviously, a lot of people on this site are very passionate about it.  Yet I find it a little surprising.  I've gone to nice resorts in places like Florida, Colorado, and Georgia.  All of them have required valet parking for which they charge at least $20-$25 per night.  All have required resort fees generally running in the $30-$40 range generally covering things like newspapers, pool towels, internet access, etc.

Now, I've never faced either in Las Vegas.  I never drive a car in Las Vegas, except a few times when I've gotten a one day rental to go out to Red Rocks or Mount Charleston, picking up and returning at the hotel garage.  I never pay resort fees because my room offers always waive them.

Still, I find the reactions here interesting, and wonder if there is the same reaction in all the other resort locations in the country which seem to have adopted these fees years before they came to Las Vegas.

Ray Apr-19-2018

Lots of talk? But not enough doers

The LVA site seems to have a great percentage of people who either refuse to go again, change their habits or just complain, but the vast majority of Vegas travelers live with it. The Vegas corporations are cultivating the younger crowd (see clubs and other young adult oriented entertainment). RF's and now parking are part of the deal and many of the newer customers have always had charges like this in Vegas. AND, us old-timers are fading away, so the percentage of people who balk at these charges is also dwindling. So I don't see an easing of this in sight.

Vicki Horton Apr-19-2018

My take

I think the resort fees are a result of the loss of revenue due to comped rooms.  Even though they can be waived after the stay with rated play, most are billed (we just recently started asking for waivers).  If they are going to charge fees for services, it would be nice to include services that are actually worth what we pay for.   Why charge for local calls - most people have cell phones?  Why charge for pool services when the pools are closed?  I think people would be less upset over the fee if we got something for it.

As for parking, it seemed to start with T-Mobile Arena and grew from there.  I understand the parking fees when there is an event as the garages near the venues may fill up with attendees which wouldn't leave much room for casino visitors.  But why charge all day to those that are wanting to gamble?  Or at least don't charge parking fees AND resort fees for hotel guests.  Maybe include parking as part of the resort fee but not both.

James Mason Apr-19-2018

Really?

I have been a VP AP for 20+ years from out of town. Strip Parking fees have my attention, 1 hour with out paying is OK, sort of, because I have a seasonal resident ID(another story). The rest of problem is strictly about the casino business preventing the OTA's(think Expedia) from getting a percentage commission from the resort fee. Forget cheap rates of $30 to $100 per night. Add an extra $50 until the next recession.

My point is there are work a-rounds. I love beating the system.
If you put money down on the table or in the machines, things go well for comps. Just not on the strip, unless you are Mister George high roller. I stick to the outlying casinos and I am treated very well.

Anthony de Jesus Apr-19-2018

Resort fees aren't going away

At best, casinos might be forced to be less deceptive about them.  The FTC was headed in that direction and had declared that hidden resort fees were harmful to consumers, but that ground to a halt when the White House became occupied by someone who personally benefits from hidden resort fees.

Andrew74 Apr-20-2018

resort fees/paid parking

If these costs are due to websites like expedia, why not just opt out? I know some airlines have dropped out, why can't hotels? I'm sure this is spreading around the country, but I refuse to pay these fees anywhere! It's hard to avoid the resort fee but I refuse to pay to park at the hotel I'm staying in regardless of where it is! I believe the Seminole hard rock in Tampa instituted parking fees & had to reverse it's stance because the locals stopped going. I don't stay on the strip anymore & only visit the Venetian/Pallazzo where I can park for free. I won't give a dime to the ones who charge these fees on principle. It's only a matter of time before the local casinos fall in line and that will be the end of my visits to Vegas.

Question of the Day - 19 April 2018

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