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Wynn Introduces The Extra Bed Fee

By JohnH on Friday, 19th November 2010 2:14pm
  » filed under Wynn Resorts  comments: 18

   

While checking the various rates at Wynn and Encore during the days preceding Cosmopolitan's opening in twenty-six days, I both was and was not surprised to see that Wynn has finally introduced the tiered, "If you want two beds, it's time you pay for them" price structure that has been standard operating procedure at Encore for over a year now.

Yep, that's right. It'll now cost you a cool $30 extra per night - the same fee Aria charges for the same service, but not quite as much as Encore's $50 fee - to "guarantee" that your "request" for two beds will be granted at check-in. Oh by the way, if you're thinking you can try your luck and get the two beds at check-in without the fee, don't. I've tried that one in the past at Encore only to see said attempt fail and myself and my travel partners stuck with a roll-away in a king-bedded room.

Now I could spend my time here getting vociferously angry over this policy, but I have made my opinion toward this fee more than clear in the past. I hate this new trend as much as I hate resort fees, but just like the latter, this thing is starting to spread across the industry and there's little that any of us can do about it.

However, what I can do in this space is a bit of cost analysis that makes it clear just how much you and I are being screwed by this thing. Let's pull out the pencil.

On a randomly selected set of dates - let's choose Dec. 13-15 - the Deluxe Resort King at Wynn Las Vegas currently retails for $159 per night. The Deluxe Resort Double retails at $189, which translates out to an additional $60 during your stay. However, you can't forget that there is that additional $20 daily resort fee tacked on to your vacation. That then brings the sum of your additional fees up to a cool $100 over the hotel's quoted base rate. Uh, wow.

That's quite a bit of money and it's really going to nowhere. It could have gone to a dinner at Lakeside Grill. Or maybe it could have gone to a bottle of wine at Le Cave. But nope, it just gets sucked into this black hole of fees. Sluuuuurp.

And really, what's next? Am I going to have to pay an extra fee to use a bellhop when I arrive at the resort? Am I going to be charged some sort of surcharge for said bellhop if my bag weighs more than 50 pounds? Where in the hell does all of this end? Somebody, please tell me.



Tagged: wynn las vegas   resort fees   encore   





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Comments & Discussion:

You forgot to add the tax. My guess is that they are going to start charging for parking like they do in AC.

Well, it will not end. Much like the airline baggage fees. It's proven too lucrative and the masses will still "pay up, sucker". There will always be the lesser educated / willful populace who will shell out these fees whether they are "wrong" or not.

I find it just an opportunity to spend my vacation dollars elsewhere instead of my yearly / twice yearly trips to Vegas.

"Where in the hell does all of this end?"

You go to Atlantic City. Or Macao. Or if you're that poor, Reno. Or Hawaii or somesuch non-gambling destination.

In the meantime, here's another fee for Harrah's to quote themselves as not charging.

I guess we could persuade Wynn to go back to the good old days when they charged $249-$399 for rooms, but you didn't have to pay anything "extra".

I think the flaw in the anti-resort fee argument is the assumption that the base rates would still be $159 if resort fees were abolished. Good luck with that.

I do think resort fees are a stupid marketing gimmick, but the determining factor in my hotel selection is always going to be my basic perception of its value vs. the total cost.

You can say "it's not the $20, it's the principle" all you want, but I'll still gladly pick the hotel that charges $159+$20 over the similar hotel that charges a flat $249 any day.

The double-bed fee I have no real problem with either. It's just another variation on the tradition that hotels have had forever of charging extra for anything beyond "double occupancy". Sure it's $15/each more to split a room with a buddy you don't sleep with, but in my mind that still works out to a hell of a lot less than two single rooms, so I would gladly pay for the guarantee. And as for the guys that book a room on expedia for "1" person and then ask for double beds and two roll-aways for their d-bag posse to crash on, I say charge them as much as you can get from them.

Don't even get me started on the parking fee in Atlantic City......

You just got a 31.4 percent price increase on your Wynn hotel room. At that rate, the cost of a room at The Wynn will double within two years and three months. These hidden price increases will continue until customers rebel and start staying elsewhere.

My girlfriend and I have a range of hotels that we like, and usually we stay with the hotel that offers us the best deal. We love The Wynn, but it's hard to justify paying that much when there are hotels near The Wynn that are still very nice and cost a fraction of The Wynn: The Mirage, Treasure Island. Don't forget that you also pay more for food and alcohol at The Wynn; and often you pay more money in the form of worse gambling odds (unless you're a high roller); plus other hotels will provide more generous comps than The Wynn for the same amount of gambling action; and if you like nightclubs, that's an extra $100 admission fee for two that many other hotels don't charge their guests to attend the on property nightclub. There isn't much advantage to being a guest of The Wynn as opposed to a guest of another property who visits The Wynn. You get to stay in a really nice hotel with top notch service and a great swimming pool and you pay a lot for that privilege. If you want to save money, you could easily stay at Treasure Island for much less and still have a quick walk to enjoy the great restaurants and entertainment at The Wynn. With the money you saved from staying at Treasure Island, you would have more money to spend on those restaurants too.

Of course, The Wynn nickels and dimes you for a reason: they are the best in town and they need lots of money to pay for that kind of extravagance. They will continue to charge whatever the market will bear and who can blame them?

I'm gonna charge them 50 bucks to not shit in the sink, so it'll work out.

That's just nasty! I only pissed in their sink.

If you're going with your girlfriend how would this affect you at all? It's not like Mirage and TI don't charge resort fees either

Chris77 is on top of this thread. Room rates (which are taxable) are lowered and resorts instead add on a fee (which isn't taxable) to generate additional revenue for the property while not increasing the total cost for the consumer.

Consider:

$179 + tax = $200.48 (hotel gets 89.28% of your per night cost)

$159 + tax = $178.08 +20 resort fee = $198.08 (hotel gets 90.37% of your per night cost AND your bill is $2.48 lower).

The only problem with that is that all those fees ARE taxed at the same 12% as room rates are, because they are all considered "Rent" under County Code Section 4.08.005(16).
(See page 2: http://www.accessclarkcounty.com/depts/business_license/Documents/Combined%20Transient%20Lodging%20Tax%20Return%20Preparer's%20Guide.pdf)

I think it really started with hotels wanting to pop up higher on internet searches on third-party sites and look more competitive with other hotels. Unfortunately it caught on and now they all have to keep doing it just to avoid looking overpriced.

Interesting. I was under the impression that they weren't taxed.

What you are completely forgetting about this analysis is the reasoning behind why the hotel decided to charge the fee in the first place. Here's the logic behind it, as the economy tanked the demand for 2QB rooms across the city increased dramatically. More people started sharing a room in order to effectively lowering the price each person staying in the room was paying.

Now this affect was magnified at the luxury properties, which typically have fewer 2QB rooms in general (after all as Mr. Wynn says "Wynn was built for lovers, I think they have like 23% QB rooms or something like that). At some point the hotels were getting far more requests for these rooms then they were able to confirm. Like to the magnitude of 1.5 to 2 times more requests then the number of QB rooms they have total.

So this lead to a lot of generally unhappy, pissed off guests who then need to be somehow compensated (read: comped) because they weren't give the two beds they requested. At some-point this needed to be addressed. The hotel needed to split the room inventory into two pieces (separating KB rooms and QB rooms as separate room types, which previously was not done in the city) and charge a different rate for the QB rooms to curve demand.

Now this allows the hotel to 'yield' the rate as a separate room type (just as they would differentiate the prices of different types of suites) and change prices based on demand. So right now, yes it is $30 more for that extra bed; but who is to say in a year once the economy has recovered and demand for KB rooms goes back up to a nominal level that this rate difference doesn't balance back out. After all demand drives pricing, especially in this city.

If you want to see a good example of how much of an impact this can have on propriety, take a look at Aria and compare the Trip Adviser scores from before and after the fee implementation. I am willing to bet there is a sizable difference in review score, and I bet a large difference in this score is driven by a decrease in the number of pissed off hotel guests who were forced to sleep in a rollaway. Just something to think about.

Well I hate sharing rooms anyway so this doesnt affect me. I can see the arguement against this but 2 beds in the room means that housekeeping has extra work to do. You could justify the charge with that. I would rather stay across the street at TI, however and wander thru the Wynn if I feel the need to. The place looks great but the price doesnt interest me in booking a room there.

"You can say "it's not the $20, it's the principle" all you want, but I'll still gladly pick the hotel that charges $159+$20 over the similar hotel that charges a flat $249 any day."

but if you don't find out about the resort fee until after you book (not paying attention) or when you go to check out, then it sucks.
yes, it's one thing to pick 159+20 over 249, but when you are comparing 159 to 169 to 135, but each now has a separate and unique resort fee, then it sucks. we should be able to type in "x star resort, vegas strip" and get the exact rate at first glance, and not have to make separate calculations for each hotel.
i don't want to see 159, then later find out it's 179. i want to see 179 up front. especially when they play it off that the resort fee pays for all these wonderful amenities such as 2 free bottles of water that you need to go to the actual Poland Springs to get? F them in their F-holes

I bet this pricing trend is more likely tied to convention trends (more attendees doubling up) rather than just another naked attempt to gouge the touristas and gamblers.

Honestly, I think these guys are realizing that the party's not coming back for a long, long time, and they are caught in a vise. Too many rooms, not enough customers. LV is likely to remain a travel bargain for a long time, but the nickel-and-dime-you-to-death-with-charges-they-hope-you-don't-see era has begun.

X-Ray Machines will come next. Full body scans (that you have to pay for) before you go into the hotel.
NOT ONLY do they wanna charge fees for stuff, they want to make sure everyone is safe enough to pay them

I don't pay $15/day for internet access (yay for smartphones), and I personally don't need the extra bed, so I happen to be the half of the crowd that benefits from this policy. I expect that my room rate is a bit lower because of it.

Ultimately, I don't care if I pay $90 for the room and a $40 resort/extra bed/whatever fee or $130 for the room with $0 extra fees. There's always give and take in prices.



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