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Caesars Statement Re: Resort Fees

By Chuckmonster on Thursday, 21st February 2013 3:48pm
  » filed under Las Vegas  comments: 25


Caesars Entertainment has released a statement (via Las Vegas Advisor) regarding resort fees.

Resort fees at Caesars Entertainment Las Vegas resorts will begin March 1st and vary based on resort ranging from $10-25 and offer a mix of amenities and services, including Wi-fi, local calls, and fitness center access. The resort fees are in line with standard practices by many resorts in Las Vegas and worldwide.

Based on the current industry standards in the market and evaluation of the services our guests choose and use, a comprehensive package of bundled services and amenities proves to be the best and most meaningful value to our guests. This is in response to the increasing demand from our guests to provide a package price instead of the inconvenience of separate fees. We continue to do all we can to provide our guests with the best value, best products and best experiences in Las Vegas.

Unsatisfactory. Try again Caesars.


Comments & Discussion:

The fans are calling Caesars out on this:


I challenge Caesars to produce a sworn affidavit from even one customer who has ever expressed this demand - "to provide a package price instead of the inconvenience of separate fees."

I believe Judith Sheindlin put it best when she said "Don't piss on my leg and tell me it's raining."

Separate fees are inconvenient? Am I the only person who likes to see an itemization of what the fuck I'm getting so I can pick and choose what I want?

Fuck off Caesars. And just when I was starting to think you might be the place to turn to from MGM.

It's a "Buffet of Fees"

don't use the phone for local calls, don't use the fitness center... I would rather pay for what I use... They have advertised for a long time about not having them - someone should be fired!!

Any word yet on if VIMFP will be at a Caesars resort?

Setting aside the "it all comes from you at the end of the day" argument, and also the room tax point, that I made yesterday, here's the other pro-resort fee argument. Now wi-fi is included in your room price, and can you honestly tell me you won't use wi-fi? Even if you don't bring your laptop to Vegas who among us isn't addicted to their smartphone, which of course works faster band better on wifi. I think that a lot more people like to complain that they won't use any of the services included than actually won't use the services.

Just another nail in Caesars coffin....fucking idiots running that company don't have a clue.. who the hell hires these guys?

I don't use wifi or make local calls, but I'll go pee in their fitness room hot tub now.

Here's the statement they should have released: "We saw MGM, Wynn, and Venetian getting away with this. We want a piece of the action too. It's amazing our greed was contained for this long."

And they'll get away with it, because really, what will people do? A select few might vacate the Strip permanently for downtown. But the vast majority (including me) won't. So if you want to stay on the Strip, what are you going to do? Stay at Polo Towers? Casino Royale? Supposedly, resort fees are still optional at TI, but how long do you think that will last?

I have two, relatively minor, questions/concerns.

(1) What will CET do about comped rooms and RFs? MGM has been inconsistent with their policy in this area. To me, resort fees should be at least optional on a comped room, if not waived altogether. Comped should mean comped. Period.

(2) My company, like many, will reimburse me for Internet charges while I'm traveling, even if I'm on vacation, if I use the Internet for work-related tasks. In the past, when daily wifi was a distinct and itemized charge on the bill, I had no problems getting reimbursed. Now, will my company balk at reimbursing me for a resort fee that isn't just Internet, but fitness center access, local calls, blah blah blah? Probably. That sucks.

Now serving on the Buffet of Buffets: shit sandwich.

Time for resort fees to go away. Cost should be rolled into the rooms so consumers can compare prices. No one makes local calls anymore.

Since I don't know anyone in Vegas I don't make local calls. They saw that everyone else was doing it and figured why not join the club.

As a Vegas tourist-turned-local who only gambles penny slots, this will be the death of my frequent staycations. I stayed at Flamingo for $7/night in Dec. and IP/The Quad for $11/night last month. Granted, Total Rewards offers great rates to amateur gamblers, but over my dead body will I be paying twice what I could've had for a room with no resort fees.

With all that said, everyone who's said so is correct in ascertaining that Caesars figured, "Why Not Charge Resort Fees?" when everyone else was. Cue LHV following suit. BTW, I worked for a hotel in Nashville, TN that began charging resort fees as of late 2005/early 06. People will pay them and it's extra revenue. Case closed.

I agree with erzeszut with what the statment should have said.

Southwest will soon be facing the samething. Why do you think Airtran is still alive and kicking two years later? They are racking in big bugs still collecting Airtrans bag fees and don't know how to back pedal there way to charging them.

It sucks but from a one or two year a trip kind of guy, I'm not moving downtown anytime soon.

Imagine that. I am booked for March 3-6 at of all places, the Rio. Guess I'll find out then if "comped" means "resort fees" instead. WTH. As if tearing up the mid-Strip for the debacle known as the Linq wasn't enough, now they pull this stunt. Time to take a serious look at the D for the next visit. God I miss O'Sheas.

A resort fee at a place like Flamingo or Rio, for all those luxurious extras....HA HA!

Now that all guests will have access to the WiFi, will any of these resorts have enough bandwidth available? Or will speeds drop to useless levels...or the connection simply not be there when you need it?
And, I need this confirmed by someone in the business, but I bet they can turn over (clean, restock) a basic room at most of their properties for no more than $25...so if they do collect resort fees on comp/promo rooms they're recovering most of their cost of the room. Bonus!

According to www.vegas.com resort fees pop-up CET fees include--
"Fitness center access for two people per day.
Daily in-room internet access for one device.
All local calls."
So internet for only ONE device per room! It doesn't even say it's for wi-fi and based on their rooms last year they only provide wired ethernet connection!

A few thoughts:
1) On the tax question, yes resort fee money is taxed at the normal 12%. However in the past this wasn't 100% honored/enforced. These days it is.
2) Keep in mind that conventioneers and travel agency business account for a major chunk of Vegas visitation. When a conventioneer pays a room rate, the hotel has to kick a percentage back to a few different parties. With the travel agencies (like Expedia) the commissions are even worse. The resort fee does avoid these commissions. So it makes huge sense for the hotel to pack as much of the room cost as possible into the resort fee to avoid commissions.
3) The resort fee also allows the hotel to play a lot of shenanigans with how they report room revenue and how they account for money internally. Did the fitness center earn that $10 or was it room revenue?
4) The resort fee is good for Vegas mainly because of point 2. Get rid of the fee and the extra $10 goes back into the room price, and Expedia gets $2 of it. That $2 leaves the Vegas ecosystem and can no longer be used to paint the Paris balloon. It can only be used to make annoying Expedia commercials. If you're going to pay the money, it really is better for you if the hotel gets to keep it and spend it on things you will like.

CET would have been ahead to issue a press release that they are including all the "resort fee" services for free with each room, as opposed to ala carte or in a resort fee. Then raise the room price $12, $10 to cover the services, $2 to cover the kickback to Expedia. They get the income AND can claim something even better than NO RESORT FEES, they can claim resort fee services for free!

"Southwest will soon be facing the samething. Why do you think Airtran is still alive and kicking two years later? They are racking in big bugs still collecting Airtrans bag fees and don't know how to back pedal there way to charging them."

They've tried saying that their computer system (which was originally designed for Braniff back in the 1970s) is so outdated that it cannot do checked bag fees (which seems a bit strange considering they can charge you for overweight and oversized bags). They're enjoying the extra revenue AirTran's fees give them and they are dragging out the integration of AirTran into Southwest for that reason. Southwest has announced a slight change in policy now that they will be codesharing on AirTran flights and both airlines will be selling seats on each other's airline. If you book through Southwest's website and your itinerary includes a flight on AirTran, you aren't subject to AirTran's fees. If you book via AirTran's website and your itinerary includes a Southwest flight, you will have to pay AirTran's fees. In some respects, they're trying to wean people off of AirTran.com as part of the transition of their operations to Southwest (I'm sure that once AirTran ceases to exist as a brand, AirTran.com will redirect to Southwest.com [Related note. If you type in valujet.com, it redirects you to AirTran.com.].).

At times I wondered if Caesars' whole "No Resort Fees" campaign was a bit of a smokescreen to hide the fact that they didn't have a means to implement one on their computer systems. I figured that with their empire cobbled together from multiple operators that they didn't have a unified computer system that could do it. The fact that Bally's has been charging a $3/day safe fee for years while other properties in the company did not seemed to bolster that notion. The reality is that the "No Resort Fees" was a smokescreen to hide the fact that most of their properties are well worn and make the low-end properties within the MGM Resorts portfolio look better by comparison. All I have to say is that Caesars better start improving their properties not named Caesars Palace or Planet Hollywood, as if they don't, they will see more guests jump ship to MGM Resorts. The only thing Caesars has going for them (besides the flagship property) is location. They control three of the four corners in the heart of the Strip as well as the bulk of the properties within the Center Strip area. So as they go, so goes Center Strip.

@mattk great comment. thank you!

Just some more thoughts on resort fees and why they are ridiculous. Can anyone honestly say the internet connection and fitness center are better at Caesars then say even IP. I mean the cost of internet for the company is the same essentially, and you'd be hard pressed to tell me that the difference in fitness centers is so substantial.

The tax issue on resort fees, isn't about for the end consumer, but rather an end around for these resorts and what they pay to the state and local governments, their % is different if it's listed as a resort fee. The kind of sleight of hand trick that will wind up costing you an audit and penalties is ok for businesses.

If these companies could figure out how to put a policy in place, that put in writing when you will pay them (i.e for comp rooms, discounted rooms through players club, etc). I might not have an issue with it, I can factor in the price, but not knowing and then dealing with ill trained staff is frustrating. At the end of the day, I just want to know how much my damn room will cost, resort fee or not, way too much misinformation with front line employees and I've seend it handled differently at MGM spots across the board.

The last thing is this notion that it's better pricing by bundling, just because your internet and fitness fees were ridiculous, doesn't mean that bundling them makes it better, considering to open up your network by removing security, likely saves you money, don't pretend it's a deal for me.

I don't get why these companies, don't throw in a hard 'comp' with these fees on a per day basise, 2 drinks per day, or $10 off buffet/restaurant (no % off crap). In addition to not treating your customer like a number, you get the added benefit of keeping them onsite longer, when they might have walked next door. While I wouldn't love the idea of paying $25/night to get 2 $12.50 drinks, at least I can look at it as something useful, and oh why you are doing that, 2 small bottles of water in the room per day isn't too much to ask for either.

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