Saturday, February 25, 2017

When do resort fees have a profound impact?

The following, edited comment was hastily constructed for a Las Vegas message forum discussion. It was a discussion regarding the latest resort fee increase announcements from the major players on the strip. I'll assume you've heard the rants and understand why resort fees irritate many people.
Not so long ago I wondered when we'd see a resort fee base rate (pre-tax) of $50. I predicted by the end of 2018 or very early in 2019. Of that I have no doubt as of today.

People will continue to fill hotel rooms, parking and resort fees be damned. People will fill them because they're waived due to casino loyalty, because they don't have to concern themselves with the bill at the end of the weekend or because the company is paying for them to be there.

With increasing declarations by people that they're done, or nearly done, with Vegas, particularly on the strip, and the number of locals who don't have any reason to darken the doorstep of strip properties – now more than ever – how soon are we going to hear about woeful economic times for the hourly workers who rely upon the tourist for their income?

It has been reported that parking fees are cutting foot traffic inside strip resorts, and that has affected the income of dealers and valet personnel, as well as the retail revenue inside the resorts. It has the potential to snowball into something not good.

Doesn't mean doomsday, but is it possible that we see a vicious circle that has a long-term effect?

No comments:

Post a Comment