Las Vegas Hotel Fees Escalate Breaking Down MGM’s New $51 Phone Booking Charge and Alternative Booking Methods

Post Published December 24, 2024

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Las Vegas Hotel Fees Escalate Breaking Down MGM's New $51 Phone Booking Charge and Alternative Booking Methods - MGM's New $51 Phone Booking Fee Adds to Growing List of Las Vegas Hotel Charges





MGM Resorts has recently stirred controversy by implementing a $51 fee for bookings made through their call center, contributing to the rising tide of fees that Las Vegas hotels are imposing on guests. This new charge is indicative of a broader trend in the region, where hotels are layering on various additional costs such as increased resort fees that can range from $37 to $50 per night. As visitors grapple with these added expenses, many are expressing frustration over the lack of transparency and value in their hotel experiences.

While MGM's strategy might aim to encourage direct bookings, it seems to alienate guests who have long relied on phone reservations for personalized service. The growing list of fees not only challenges the notion of a straightforward booking process but also compels travelers to rethink their choices, with many now opting for online platforms or alternative accommodations to sidestep these surcharges.

MGM Resorts is now charging a $51 fee for booking reservations via phone, a new charge in a growing list of add-ons at Las Vegas hotels. This fee applies to anyone opting for the call center over online booking methods, raising questions on whether the hotel group is strategically pushing customers toward specific reservation channels. The additional expense, coming on the heels of already rising resort fees across the Strip, is attracting traveler criticism, and might prompt a reevaluation of their hotel bookings. The increasing cost of lodging is a broader development where various mandatory surcharges go well beyond advertised room rates, affecting how people plan and budget their trips. This trend may be indicative of larger shift in travel, where hotels are seeking new ways to generate income streams, leading to what some might see as unclear or obfuscated pricing strategies.

What else is in this post?

  1. Las Vegas Hotel Fees Escalate Breaking Down MGM's New $51 Phone Booking Charge and Alternative Booking Methods - MGM's New $51 Phone Booking Fee Adds to Growing List of Las Vegas Hotel Charges
  2. Las Vegas Hotel Fees Escalate Breaking Down MGM's New $51 Phone Booking Charge and Alternative Booking Methods - Direct Website and Mobile App Bookings Remain Fee-Free at MGM Properties
  3. Las Vegas Hotel Fees Escalate Breaking Down MGM's New $51 Phone Booking Charge and Alternative Booking Methods - Third Party Booking Sites Offer Ways to Bypass New Phone Charges
  4. Las Vegas Hotel Fees Escalate Breaking Down MGM's New $51 Phone Booking Charge and Alternative Booking Methods - Resort Fees Jump by $6 at Bellagio and Cosmopolitan Without Notice
  5. Las Vegas Hotel Fees Escalate Breaking Down MGM's New $51 Phone Booking Charge and Alternative Booking Methods - Free Booking Alternatives Through Hotel Loyalty Programs and Status Match
  6. Las Vegas Hotel Fees Escalate Breaking Down MGM's New $51 Phone Booking Charge and Alternative Booking Methods - Las Vegas Strip Hotels Follow Industry Trend of Separating Core Services from Room Rates

Las Vegas Hotel Fees Escalate Breaking Down MGM's New $51 Phone Booking Charge and Alternative Booking Methods - Direct Website and Mobile App Bookings Remain Fee-Free at MGM Properties





Las Vegas Hotel Fees Escalate Breaking Down MGM’s New $51 Phone Booking Charge and Alternative Booking Methods

MGM Resorts has reaffirmed its commitment to fee-free direct bookings made through their website and mobile app, amidst a backdrop of rising hotel fees in Las Vegas. This policy stands in contrast to the newly implemented $51 charge for phone reservations, reflecting the industry-wide shift towards encouraging digital engagement. While travelers can still book without incurring additional costs online, the move raises concerns about the growing complexity and lack of transparency associated with hotel pricing models. As resort fees continue to climb, many guests are left reassessing their booking strategies, often gravitating towards more straightforward and less costly alternatives. The tension between convenience and cost is palpable, challenging traditional notions of hotel customer service.

MGM properties continue to offer online and mobile app bookings without additional fees. This strategy stands in contrast to the growing costs associated with using third-party booking systems that are sometimes priced at 20-30% higher than a direct booking. The trend towards hotels promoting fee-free direct bookings appears to be a strategic move to reduce reliance on third parties, which dominate the booking ecosystem yet come with disadvantages such as reduced control over brand and rates. Mobile reservations have recently surged, as up to 80% of travelers now use mobile apps in travel planning which signals a significant shift towards digital solutions. Direct online bookings are seen as offering clearer price breakdowns, in contrast to intermediary bookings where costs often accumulate. MGM often promotes offers that are only available to guests who book through the website or app, which include rate discounts and other value added perks, which should make for interesting case study if the trends continue. This may contribute to a new generation of consumers who value transparency and book directly for accuracy and improved service. As competition amongst hotels in Las Vegas intensifies, others may start to adjust their booking models in response to MGM’s new fee schedule. Moreover direct bookings with hotel loyalty programs often means guests earn points faster. This combined with heightened consumer advocacy for better fee disclosure could lead to pressure on hotel groups to better clarify how additional fees are charged, and a reassessment of what makes a great value hotel booking.



Las Vegas Hotel Fees Escalate Breaking Down MGM's New $51 Phone Booking Charge and Alternative Booking Methods - Third Party Booking Sites Offer Ways to Bypass New Phone Charges





MGM's $51 phone booking fee has clearly frustrated many travelers, pushing them to explore other booking options. Third-party websites are gaining attention as a way to potentially find deals that include resort fees within the initial price, saving guests from surprises at check-out. These platforms can offer enticing deals to people watching their spending, which is worth noting versus booking direct with hotels. However, while these online avenues can avoid MGM's new fee, it's important to be cautious about less obvious fees that may be tucked into the final total. Travelers are becoming more aware of these issues, and are demanding transparency and better value from their overnight stays as a result.

The emergence of third-party booking sites is proving useful for travelers wishing to navigate the new $51 phone booking surcharge, offering a work around that hotels seem to have designed with this exact intent in mind. These external platforms may not only present methods to avoid the additional fee, but they frequently have rate structures that bundle resort fees into the initial price, meaning there are no additional charges at the end of one's stay. While there is some cost savings, the third party websites also often suffer from a reduction in price transparency when compared to direct bookings.

However, there's a notable caveat to the convenience that third-party sites provide. It appears they are often subject to dynamic pricing, which means that the cost displayed on one third party booking sites can fluctuate independent of another and differs from direct bookings. Direct booking also has a huge advantage when it comes to accumulating loyalty points. These systems seem to favor direct bookings over external sites, giving incentive to return direct to the hotel. Despite these factors, it is interesting to observe a shift in user behavior, as a considerable portion of travelers now appear to prefer to book directly, looking to avoid hidden fees and a simplified experience. This shift could signal a growing market for hotels who choose to disclose all cost upfront. The number of users booking via a mobile app for travel planning continues to surge. This preference for online methods is likely the underlying reason for hotels pushing a migration from phone bookings, which can also result in savings on customer service costs. Regulatory bodies seem to be responding, with ongoing debate on fee disclosures from hotels, but only time will tell if and when such policies will be enshrined into law. In an apparent side effect to these increased hotel fees, alternate accommodations are surging as well and might even contribute to more competitive rates overall in the lodging sector.



Las Vegas Hotel Fees Escalate Breaking Down MGM's New $51 Phone Booking Charge and Alternative Booking Methods - Resort Fees Jump by $6 at Bellagio and Cosmopolitan Without Notice





Las Vegas Hotel Fees Escalate Breaking Down MGM’s New $51 Phone Booking Charge and Alternative Booking Methods

Resort fees at the Bellagio and Cosmopolitan have jumped up by $6, now reaching $50 per night, without any prior warning. This abrupt hike highlights a growing trend of increasing hotel charges across Las Vegas, with the final price to stay in a hotel becoming increasingly unpredictable. Travelers are growing weary of these opaque additional fees, which appear to be added without proper communication to hotel guests, contributing to a widespread sense of frustration. This development, combined with other surcharges, may cause many to alter how they plan their visits, perhaps opting for alternatives that do not engage in hidden fees, resulting in an increase in non-traditional bookings. The changing dynamics of booking accommodations in Las Vegas continues to spark anger and discussion on fair business practices.

Recent reports detail that both the Bellagio and Cosmopolitan hotels have increased resort fees by $6 with no prior notice, adding to the general increase of hotel costs in Las Vegas, much to the frustration of travelers who increasingly scrutinize these hidden add-ons. The lack of transparency around such sudden hikes contributes to an overall sentiment of unease amongst travelers, prompting further discussion regarding the ethical implications of unannounced fee increases and the absence of communication from hotel management.

Furthermore, in a related move, MGM Resorts is now charging $51 for bookings made via phone call, adding even more costs for guests who prefer older or simpler booking systems. The new booking fee creates additional cost, especially for those less comfortable with online booking, prompting exploration of more traditional booking methods, yet still keeping costs manageable. The industry seems to be moving towards increased online reservations, but it appears that the additional costs and restrictions to phone bookings may cause an overall dissatisfaction and may negatively affect customer loyalty in the long run, at least for those choosing not to book online. The result has been a rush to explore alternative options and a critical look at booking strategy that maximizes value and transparency.



Las Vegas Hotel Fees Escalate Breaking Down MGM's New $51 Phone Booking Charge and Alternative Booking Methods - Free Booking Alternatives Through Hotel Loyalty Programs and Status Match





In the face of escalating hotel fees in Las Vegas, particularly the recently introduced $51 charge from MGM for phone reservations, a strategic approach using hotel loyalty programs and status matching is gaining traction. These programs offer tangible benefits beyond simple discounts, like waived resort fees and the possibility of complimentary room upgrades that significantly offset the growing costs of lodging in Vegas. Savvy travelers are leveraging these programs to access lower rates, complimentary dining, and even free nights, creating a buffer against the barrage of surcharges that have become standard in the city's hotels. While accumulating points in these loyalty schemes might not be for everyone, those willing to invest time could see a noticeable difference in their vacation budgets as hotel pricing strategies continue to grow more complicated. This means understanding the ins and outs of these loyalty systems could be the key to experiencing Las Vegas without the burden of unexpected expenses.

Hotel loyalty programs are presenting some alternative methods of reducing costs amidst the rising fees at many properties. For instance, redeeming points for free stays, particularly if one has racked up a substantial points balance, can circumvent expensive bookings entirely. The value here is obvious, even though it requires consistent patronage and planning.

The concept of 'status matching' also appears to be more common. This is where travelers leverage their elite status in one chain to gain comparable benefits with a competitor, including potentially waiving resort fees, gaining upgrades, or complimentary meals. The value of such programs is certainly variable, but if travelers are able to utilize their existing status, it can provide genuine value and circumvent paying for upgrades and/or added resort fees.

Moreover, the growing sophistication of tools to manage loyalty points has added another interesting aspect for cost-conscious travelers. Hotel loyalty programs are not all the same; some feature tools that help manage and track a traveler's earned points to be strategically deployed. Often, this is to time a specific stay with point expiration or redemption that might otherwise be less than optimally utilized.

Strategic alliances between hotels and other travel sectors, such as airlines and car rental companies, present additional opportunities. By booking through these partnerships, members often gain extra points or discounts. However, navigating these relationships can be complex. One might suspect such interconnected partnerships are designed to lock in customers, yet may be useful for a particular consumer who has all components required for a specific trip.

The availability of deals outside of major tourist hotspots in secondary cities presents a further option to reduce expenses. Some programs offer reduced rates for stays in less popular cities, enabling travelers to secure stays with top-tier brands while keeping costs contained. The trade-off here might be less exciting destinations but also far lower costs, making it a valid tradeoff to consider.

In an age where hotel rates are constantly fluctuating, understanding revenue management systems may also provide an advantage. Hotels now use complicated systems that change prices due to real-time demand, an area worth looking at for a clever consumer. Bookings during off-peak periods can lower cost, and loyalty points may stretch farther during such less-popular times.

Some programs offer bundled options where stays include dining or entertainment. These packages can be another strategy in combating mounting prices, often leading to a more predictable total spend, an advantage when budgets are a concern. It's worth noting whether the bundled discounts are worthwhile compared to simply buying items independently.

More flexible booking policies also play a role in reducing financial risks by offering greater latitude to cancel or change bookings with minimum cost penalties. As travel plans can change unexpectedly, these flexible bookings may offer an additional peace of mind, avoiding forfeiture of entire booking fees.

Direct bookings continue to provide benefits, like complimentary Wi-Fi, complimentary breakfasts or late checkout. These seemingly small perks, which are not always offered via third party sites, enhance the total value. It does seem like hotels are incentivizing users to book directly, bypassing external websites entirely.

Finally, there is more awareness of the complexities surrounding these added hotel costs, and consumers are learning to navigate the various strategies to extract the most value. This consumer awareness creates an environment that puts pressure on hotels to become more transparent and potentially adapt to evolving demands to retain their loyalty.



Las Vegas Hotel Fees Escalate Breaking Down MGM's New $51 Phone Booking Charge and Alternative Booking Methods - Las Vegas Strip Hotels Follow Industry Trend of Separating Core Services from Room Rates





Las Vegas Strip hotels are increasingly adopting a trend that separates core services from room rates, creating a more complicated pricing model that often leaves guests frustrated. Recently, MGM Resorts introduced a $51 fee for phone reservations, underscoring how hotels are shifting towards augmenting room prices with various additional charges. This move reflects a broader industry strategy that is not only raising the overall costs of staying in Las Vegas but also prompting travelers to seek alternative booking methods. As hotel occupancy rates remain high, guests are now more vigilant about unexpected fees and are compelled to rethink their booking strategies to avoid escalating expenses in a competitive market. With the emergence of sophisticated hotel loyalty programs and renewed interest in third-party booking options, the landscape of hotel pricing is evolving, challenging the traditional expectations of transparency and value.

Las Vegas Strip hotels are increasingly unbundling services from the base room rate, a tactic also used by other hotel chains that is leading to more resort fees and other add-ons. This is leading to a focus on the total cost, rather than just the advertised room rate. This change in pricing forces travellers to factor in additional expenses, impacting the way guests budget for trips. The practice of separating out fees is pushing guests to carefully consider every element that constitutes the actual cost of a room.

MGM's decision to charge a $51 phone booking fee is seen by some as another way to generate revenue, while pushing guests to use online booking methods and to cut down on call center staffing. As a consequence, third-party booking websites appear to be gaining a lot more traction as an alternative to booking directly. These websites often offer bundled deals which include the total cost and fees within the displayed price, saving a lot of surprises at checkout time for guests. These aggregators tend to offer discounts when compared to direct hotel bookings, and give customers some pricing transparency, but there are certainly caveats, in particular that prices appear to be rather dynamic.

Furthermore, up to 70% of travellers are showing that they are now more than willing to switch their loyalty due to a lack of transparency. It seems that this push towards separating prices has caused a major transformation in customer behaviors. The growing push for hotel price transparency also impacts revenue, and in the near future may change the entire pricing strategies for hotels.

Additionally, third party sites often use dynamic pricing systems, meaning the cost may vary across platforms, and these variances can be significant, depending on the website, adding a bit more complication into the buying process. It appears that hotel loyalty programs are rapidly gaining strategic importance among travelers, as a method to bypass hotel surcharges through a variety of methods, such as matching statuses in one chain to a competitor, offering potential benefits like waived resort fees or additional perks.

Mobile bookings are surging too, as up to 80% of travelers now book via a mobile app, a major transformation in the booking landscape, prompting hotels to incentivize direct bookings, away from traditional phone reservation channels. Unfortunately, MGM's phone fees and increases to resort costs are causing some additional confusion for guests trying to compute the total cost for a hotel stay. As hotels add on extra service fees to the total booking cost, this could potentially lead to an overall decline in the customer experience and may push many users to reconsider booking with these venues in the future, or choose other accommodation venues outside of large resort chains.

These price escalations can damage customer loyalty and prompt travelers to explore other alternatives, but the lack of transparency on all fees is becoming an increasing concern for many consumers and legislative debates are being sparked on this issue, with many seeking legal mechanisms that compel hotels to disclose all fees at the start of booking. Hotels are frequently offering more advantageous conditions like discounts and complimentary amenities to guests that book directly via their website or app to incentivize these direct bookings, bypassing third party websites. This might also be done to help control the brand messaging as well as customer data.


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