President Joe Biden persistently advocates for the abolition of “junk fees.” These are concealed charges that are appended to the cost of flights, banking, hotel rooms, show tickets, among other things.
His crusade initiated late the previous year and has carried on into this year. Up to this point, despite attention from the topmost US politician and coverage by mainstream media, the fees have not been eliminated.
Is it too early to tell if President Biden’s effort to eliminate these fees will work?
Visitors to Las Vegas may not be significantly affected by a fee change. This is because Las Vegas is one of the cities that has come to accept and integrate all sorts of extra fees.
Should corporations be compelled to eliminate fees, it’s probable that the cost of certain goods and services will rise. Moreover, alterations to their benefits may be experienced by casino rewards members.
Las Vegas Junk Fees
Casinos in Nevada and businesses in Las Vegas often utilize “junk fees”. It’s quite challenging to dodge these additional charges regardless of when one visits Las Vegas.
Hotel Fees
Almost accustomed to the additional $30-$50 per night hotel resort fees, visitors to Las Vegas find this extra cost can account for more than the actual cost of a hotel room each night. This is due to the abundant number of hotel rooms in Las Vegas that can be priced extremely low.
For those new to it, a stay at a Las Vegas hotel can be quite an experience. Each night, guests are charged a room fee and a resort fee, which covers amenities such as free local calls, gym access, and wifi, regardless of whether these services are utilized or not. Some hotels might also have extra charges for additional features like an upgraded view of the Vegas Strip, parking, early check-in, late check-out, pets, among others.
Show and Concert Fees
Charges for services at shows and concerts are not a novel concept. However, due to a limited number of show promoters, these fees have seen a significant increase in recent years. Pollstar, a music industry trade magazine, reported that in 2022, Las Vegas topped the list with the priciest concert tickets priced at $151.69. Service fees for shows can potentially inflate the ticket cost by 25%-50%.
Bar and Restaurant Fees
An increasing number of bars and restaurants are subtly incorporating a CNF (concession and franchise) fee into their bills. This fee is often inconspicuously mentioned in fine print on the menu, separate from the main dishes and drinks. Customers are typically not informed about this charge when ordering a drink at the bar. Usually, this fee is around 5%, low enough that many tourists overlook an extra 50 cents on a $10 beer or an additional $2.50 on a $50 meal.
Dayclub and Nightclub Fees
In addition to the already steep prices for VIP tables and cabanas, Las Vegas dayclubs and nightclubs impose additional charges. Patrons are levied a venue fee of approximately 15% on top of a mandatory minimum spend. Many of these clubs also add a 15%-20% gratuity to the final bill, with the expectation of further tipping. However, those who can afford such a lavish VIP experience generally do not object to these extra costs.
What’s Next For Fees In Las Vegas
Will all these charges be removed now? As Lee Corso is known for saying on ESPN’s College Gameday – not so quickly, my friend.
Corporations earn billions of dollars from these “junk fees.” They won’t relinquish them easily.
Bill Miller, the president of the American Gaming Association (AGA), has already expressed support for these fees. In a letter to the Federal Trade Commission (FTC), Miller argued that resort fees add value for customers and criticized all-inclusive pricing.
Switching to all-inclusive pricing could eliminate current amenity disclosures and might cause consumers to make assumptions about the availability of services and amenities.
As a trade organization for gaming operators, the AGA employs Miller to advocate for them. His role does not include representing the customers who pay the fees.
Casino Rewards Club Changes
If Las Vegas casino hotels change to all-inclusive pricing, it will transform one aspect: rewards programs. These programs may again be depreciated if there’s a shift in the billing method for customers.
Currently, many middle and upper tier casino rewards members have their resort fees waived. This represents a significant financial advantage of $30-$50 per night for visitors who are loyal to specific casino operators.
Should hotels begin to only charge a room fee plus tax, the resort fee waiver – a benefit enjoyed by the most loyal visitors to Las Vegas – will be non-existent. Consequently, mid-upper tier rewards members will lose out on their best perk.
Furthermore, it could be that fewer complimentary rooms will be available as lower-tier reward members may not be able to offset the costs for the casino corporations. These companies aren’t in the business of making a loss.
Don’t anticipate that costs from fees elsewhere will vanish. Corporations are accustomed to making additional income from these fees, and inevitably, someone will have to foot the bill.
Although opposing fees isn’t wrong, the actual cost of hotel rooms, goods, and services in Las Vegas may not vary significantly.