New Campaign: Resorts World Las Vegas Bucks Resort Fee Trend

Resorts World Las Vegas has a new campaign all over the city – All Resort, No Fees. But will it work? 

All Resort, No Fees.

The new campaign from Resorts World Las Vegas hits the heart of consumer dissatisfaction with the gaming capital of the world. Rampant and runaway fees, escalating prices, and a disconnect from the working class tourism that made Las Vegas a staple of US tourism has hit a wall.

The elimination of resort fees is one way to differentiate from the rest of the Las Vegas strip which has embraced and escalated the practice of tacking on non-refundable, non-negotiable fees that do not appear (for most Americans) in the price of the stay but are very much a mandatory cost. The complex has also eliminated self-parking charges another sticking point of contention for guests.

Resorts World Las Vegas is at the end of the Strip opposite Fontainebleu LV, the latest glitzy high rise and the second outpost from the Miami legend. The complex, of course, hosts a very large casino, shopping complex, meetings, spas, and 69 restaurants and bars from celebrity-chef fine dining to casual dining and a Starbucks. The three hotels that operate on the property are the Hilton Las Vegas, Conrad Las Vegas, and Crockfords, a LXR hotel chain also from Hilton. I reviewed the Conrad Las Vegas in October 2022.

The Decline of Las Vegas Tourism

Las Vegas tourism is down 11% this year, though meetings and events remain steady. There are a few culprits of the decline, many of which have been covered here on Live And Let’s Fly and elsewhere in the media.

International arrivals are down 13% in June and domestic traffic is down 6.5%. The airport, is only down 4% but it’s unclear if that includes connecting traffic.

“The sharp decrease in overseas visitors—who typically stay longer and spend more—is a major blow. Convention traffic remains strong, up about 10%, but leisure travel has softened, with weekday hotel occupancy dipping below trend.” – Hotel Management Network

Coincidentally, both Matthew and I were in Las Vegas for work last week, completely unrelated and not on the same days. His observations may differ from mine. In my brief time it seemed that traffic was relatively limited though there’s no question that people are still out and about enjoying Las Vegas, perhaps just less of them.

How Las Vegas Climbs Its Way Out

Resorts World could set the tone for the city’s return to normal occupancy. Its message needs to be broader, and wider. I was only targeted on social media while I was in Las Vegas, but the message that all of the lights and sounds, and entertainment the city has to offer is cheaper than it was last year and without the annoying fees that are a final gut punch to those who lose on the tables and slots. It has an exciting new attraction, The Sphere, which is reason enough to visit.

“Tourists are increasingly deterred by the high cost of visiting. Reports highlight eye-watering prices such as $33 bagels and $26 bottles of water, onerous parking and resort fees, and surprise charges for early check-ins and basic amenities.

One visitor remarked people felt they were “getting taken for a ride” as nickel-and-dimed pricing became widespread.” – Hotel Management Network

Whether it’s international traffic, or concerns about discretionary spending, or the runaway fees that have consumers passing on Sin City – removing resort fees gives travelers an incentive to come to Las Vegas.

What’s most important about this strategy is that the hotels can always add it back if it’s unsuccessful, but they can’t really reduce the fee. The whole point of the fee is that travelers know it’s there but don’t factor it into their calculations when booking, reducing it would not cause new travelers to book, it would simply reduce revenue from guests who already did.

The market is highly competitive. It’s entirely possible that a new approach to pricing in Vegas could start from a successful Resorts World campaign.

Conclusion

Visitor traffic is down, but convention and meeting traffic is up in Las Vegas. Resorts World Las Vegas has eliminated resort fees and self-parking costs to give visitors a reason to come back and see what’s new. If this works in Las Vegas, it could help to make a case for eliminating wasteful fees in other markets when they see tourism begin to struggle. This is one small step for tourists, let’s hope for one giant leap for traveler kind.

What do you think?