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CET resort fees..sign of strength or weakness?

Discussion in 'LV Strip Hotels & Casinos' started by kitson, Mar 3, 2013.

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  1. kitson

    kitson VIP Whale

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    if someone has posted a roster of the cet properties and their associated new resort fees, i missed it. i would appreciate it if someone would post that info.

    we just got back 10 days ago, our four nights at harrahs cost us 26 bucks, mostly because the sunday night charge of 26 over presidents day weekend.

    we spent the friday and saturday nights prior at the gold coast, at 59 a night because the rates were too much for us on the strip, and they charged a 3 dollar a day resort fee, which was not even enough to be annoying.

    so, do you think caving in to the resort fee temptation by cet is a sign of desperation, or have they turned a corner financially and their true nature is being shown?
     
  2. Busyman

    Busyman VIP Whale

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    It's in the.....Resort Fee thread that's stickied above this one.
     
  3. leo21

    leo21 VIP Whale

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    It's a show of weakness on many fronts:

    They are in debt and need the additional revenue.

    Vegas is more popular but because they don't have fees, there was no way to get the extra money the other hotels get in fees in simply raising rates because the search engines would not accurately reflect the price comparisons.

    They lost the message war. There were probably ways to get people internet and gym access for cheaper without doing a mandatory fee but they probably don't know how to sell it.
     
  4. waverunner

    waverunner BBHMM

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    CET NEVER wanted to charge resort fees.............but CET customers DEMANDED it!!. CET finally gave in and we, as loyal customers, WANT to pay $20 per day for the privilege of partaking in these necessities. We are blessed to know that a multi-billion dollar company cares about the little people.
     
  5. Funkhouser

    Funkhouser In Charge of the Big Door

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    FYI, I noticed on my most recent booking, CET is waving the resort fees on the comp'd room and indicate it on the TR site.
     
  6. tomvegas

    tomvegas Newbie

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    CET is 20 BILLION dollars in debt. This is clearly a sign that they want to generate more revenue. But I don't know if it's a sign of weakness or not. But with their recent renegotiation of some of there loans (interest and due dates etc) this seems to just be the next step towards trying to climb out of their hole. Resort fees have become a cash cow in Las Vegas and frankly it is legalized rackateering IMO.
     
  7. hammie

    hammie VIP Whale

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    They need the money.

    CZR lost $11.95 a share in 2012. Caesars Entertainment has $20 billion in debt, it has accumulated operating losses over the years, and wrote down the value of assets. The stock has a negative shareholders equity.

    They have to increase revenue without increasing prices, resort fees are the way to do this. Everyone else is doing it, so it must be OK.

    Its akin to buying a $40 item with a $10 rebate, the retailers hope that we never mail in the forms, the buyer remembers getting it for the advertised price of $30.

    Its just going to make comparison shopping a little more difficult, just do your homework and vote with your dollars.
     
  8. Nevyn

    Nevyn VIP Whale

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    Its neither about strength or weakness. Its just about realizing that the backlash from the fees isn't big enough not to do them and they let you capture additional revenue.
     
  9. habs0nut

    habs0nut VIP Whale

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    I've always wondered how the hell did the company allow itself to get that far into debt?
     
  10. Tellafriend

    Tellafriend High-Roller

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    By allowing another Harvard puke run the company. Like they understand the Walmart world we live in...
     
  11. hammie

    hammie VIP Whale

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    Just like the movie Animal House, "you f*ucked up, you trusted us". Growth through acquisition: borrow money, pay top dollar to buy other gaming operations, cut heads, cut costs. Unfortunately, the recession got in the way and what goes up doesn't always go up.
     
  12. leo21

    leo21 VIP Whale

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    It was the buyout. The traditional private equity model appears to be to cut the hell out of expenses to maximize the owners take and let the thing go bust when the debt load is too much. I don't know how much debt the Park Place purchase put on the company but the private equity debt is what is killing them now. And instead of trying to pay down debt, they are still trying to build more casinos. This is going to end badly.
     
  13. JimboS

    JimboS Low-Roller

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    All the casinos in Vegas are pretty much losing money from Caesars to the MGM properties and the Cosmo. Hooters and the Trop are also not profitable. The Wynn and Venetian make their money from Macau which supports their Vegas resorts.
     
  14. Alasted

    Alasted Tourist

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    How could it be a sign of strength?
     
  15. Busyman

    Busyman VIP Whale

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    If I was CET and didn't notice the lack of RF making a difference in my bottomline, I'd have added them too.

    Before that, they also should take into account whether their properties, comps, and other things were up to snuff in comparison.

    Anyway, if adding resort fees, I'd add them but just make the lower than MGMs for comparable properties so I still get the extra coin.

    I remains to be seen whether the drop off in quantity of bookings will be a positive or negative. Many that stay in Vegas have a IDGAF/I'm livin' it up attitude towards spending anyway and may not care.

    Hell I've seen some of that on this very board in a short amount of time.
     
  16. Busyman

    Busyman VIP Whale

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    Ha you like Mass Effect, huh?

    ....and yes, it's not a sign of strength at all. It's a white towel.

    It may be great for investors tho'.

    The only reason CET wouldn't charge them was in the hopes it would be a good business decision to lure customers away from other properties.

    The problem is that RFs are underneath prices that don't show on searches. It's pretty much a fine print/oh it's like a tax type deal.

    Hell people might even have thought it's a mandatory charge for Vegas properties.
     
    Last edited: Mar 4, 2013
  17. Alasted

    Alasted Tourist

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    Keelah se'lai. ;)
     
  18. gilly from philly

    gilly from philly Low-Roller

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    In could be a sign of strength if they think that it would not hurt bookings. If they feel that people are going to book with them anyway, might as well get all the money they can.
     
  19. big1ed

    big1ed Tourist

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    How did they get this far in debt?

    "Originally Posted by habs0nut
    I've always wondered how the hell did the company allow itself to get that far into debt? "

    Gee, I know a few countries who are guilty of this ( US, Greece, Italy, Spain, Need I say more? ). Everybody knows it is the American capitalism way.
     
  20. PopMegaphone

    PopMegaphone VIP Whale

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    Yep. They've run the numbers, and they feel they'll be more profitable this way.
     
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