Resorts World Waives Resort Fees All Summer
Resorts World Las Vegas has announced it is waiving all resort fees this summer, as part of its efforts to provide an even more exceptional guest experience.
The Benefits of Resort Fee Waivers
The move now makes Resorts World the only major Las Vegas casino hotel without resort fees. This discount comes after the free parking all summer that the property announced last month. Most Las Vegas casino resorts are currently discounting room prices as Las Vegas enters not only its regularly slow summer season, but also a tourism downtown caused by a combination punch of fewer foreign visitors and tighter domestic purse strings due to inflation.
The History of Resort Fees
Resort fees, which now average $50 a night with a range of $7 or $8 on either side, are mandatory charges that resorts once claimed cover amenities such as Wi-Fi, gym and pool access and local phone calls. Many laughingly referred to them on their websites as a “convenience fee” that was “requested by our guests.”
The real purpose of resort fees was to fool online travel agencies (OTAs) such as Travelocity and Booking.com into listing a resort’s properties first when customers searched for “lowest price” or “best value,” which is how most online travelers shop for hotel reservations.
The Impact of the Federal Trade Commission
Station Casinos was the first Las Vegas resort company to add resort fees to hotel bills in 2004. These fees went unnoticed at first because they were less than $10 per night. But competitors noticed. In 2008, MGM Resorts joined the bandwagon, followed by Caesars Entertainment in 2013 — after a 2010 ad campaign during which they boasted of “no resort fees” and even had Holly Madison posing in a “No Resort Fees Zone” T-shirt.
In May, the Federal Trade Commission finally put an end to this chicanery. Its “junk fees’ rule now requires hotels and other lodging operators to display a total price — including tax and resort fees — before the “Book Now” button is shown,
Why Resort Fees Aren’t Going Away
Even though resorts can no longer hide them, resort fees are sticking around for three primary reasons:
- Lower OTA Commissions: Resorts pay commissions to OTAs (typically 10-25%) based only on room rates, not separate fees.
- Revenue Stream Stability: Resort fees provide a consistent revenue stream that isn’t subject to the same fluctuations as room rates, which can vary with demand or OTA discounts. This stability allows hotels to offset tax liabilities more predictably.
- Consumer Psychology: A room that costs $75 a night plus a $50 resort fee still feels cheaper than a room offered for $125. Also, as much as people hate resort fees, after 25 years of being forced to pay them, they’re used to it.
Resorts World Las Vegas is taking a different approach by waiving all resort fees on room bookings through Sept. 11, giving guests an even more exceptional experience without the added convenience fee.
Conclusion
In conclusion, while resorts may still offer discounted rates and promotions to attract customers during the off-season, waiving resort fees is a significant move that reflects the changing landscape of the hospitality industry. By providing an even more exceptional guest experience without resort fees, Resorts World Las Vegas is setting a new standard for the industry.