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Caesars Entertainment Jacks Up Resort Fees After Reporting $1.2B Loss in 2019

Discussion in 'Misc. Vegas Chat' started by daveg000, Feb 28, 2020.

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  1. stlguy197239

    stlguy197239 VIP Whale

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    But, is that an issue for CET? What is the rate of rooms not booked at their hotels? If they were only booking 50% of the rooms I would agree but if they are at 90%, there is no incentive for them to change the practice. I honestly don't know what the rate of booked rooms is but from a business side, why change what isn't driving people away.
     
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  2. spdandpwr

    spdandpwr VIP Whale

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    They're not charging extra because they necessarily want to, sometimes it's a function of need. Labor, marketing, cable for the room, electricity... costs go up for the casinos too. That's most of the reason why they charge more. Frankly, I'd rather pay 2 dollars more a day than have them layoff a bunch of people that are critical to sustaining a level of service.

    Caesar's could benefit from restructuring their host program. They have way too many.
     
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  3. melbedewy

    melbedewy MIA

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    20 years ago I would spend 3 nights on a clean, perfectly comfortable room at the Ogden House for $42.
    $14 bucks a night.
    :clap:
     
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  4. comfortablynumb

    comfortablynumb Dogs have owners, cats have staff

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    That's not how they operate. They feel responsible to increase profits year-over-year by any means possible. The easiest way to do that is just pass increased costs along to the customer.

    Not saying I agree, but that's the corporate philosophy today.
     
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  5. BlacklabberMike

    BlacklabberMike MIA

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    Don't know where else I can get a room in a major destination for $41.95, so it is no big deal to me. {shrug}
     
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  6. IxAccDnf

    IxAccDnf VIP Whale

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    Somehow I don't pay resort fees in Phoenix go figure
     
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  7. hotreds

    hotreds Illegitimi non carborundum!

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    I agree- BUT- what I don't like is the glossing over of this fact with the "wonderful rooms for only $10 a night!" Say they're fifty bucks a night.
     
  8. dwild

    dwild Low-Roller

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    Fixed that for you.
     
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  9. comfortablynumb

    comfortablynumb Dogs have owners, cats have staff

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    It's funny, they did pretty well under mafia control. Maybe they should go back to that? :D
     
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  10. Viva Las Vegas

    Viva Las Vegas Elvis has left the building

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    CET Properties are not discernible from Cabrini Green before the tear down.



    Good Times - Any time you meet a payment
    Good Times - Any time you need a friend
    Good Times - Any time you're out from under
    Not getting hassled, not getting hustled

    Nine bucks for in room water
    They screw you whenever they can

    Cocktail waitress lay offs - Caesars
    High resort fee rip offs - Caesars
    Sewage smelling Flamingo - Caesars
    Hanging in a buffet line - Caesars
    Ain't we lucky we got 'em - Good Times
     
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  11. IxAccDnf

    IxAccDnf VIP Whale

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    I will be in Orlando this weekend...no resort fee.
    Booked 3 weeks at a chain hotel in St George Utah under 60/ night...no resort fees..crazy huh
     
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  12. westcanguy

    westcanguy High-Roller

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    So people are shocked that these resorts are in business to make money? We're talking 2.00 for increased resort fees and some people want to walk away from these resorts... I'm thinking the same people who get mad at limited number of drinks while playing 20.00 at a VP bartop.
    This isn't rocket science. If a business loses money, it has to either increase prices for it's services or reduce levels of service/reduce expenses but likely a combination of both. Yes, you can get better prices staying at a motel 6 off the strip and not pay resort fees. Enjoy your stay there!
    I used to spend 60-70+ nights a year in hotel rooms. 80-120.00 a night is normal and they aren't located in the entertainment capital of the world
     
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  13. spdandpwr

    spdandpwr VIP Whale

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    Exactly. It does suck that they have to continuously improve profits every year for the board. When stocks were about providing dividends and capital investments were done to sustain competitive advantage, things were better. Maybe not for the 401k, but certainly for the people working for the company and those being entertained.
     
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  14. ROTJob

    ROTJob Low-Roller

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    What got them in this mess is when they decided to turn Adult Disneyland into actual Disneyland, with massive, expensive attractions. I see the same thing happening at destinations around the world, TImes Square, Rome, etc. They trade the things that makes the locations unique for drawing in the family crowds to milk as many bucks as possible, and then once the novelty wears off, the mainstream repeat customers never come back because the circus is not the reason they were coming there.
     
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  15. lithium78

    lithium78 VIP Whale

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    Ever since I discovered AirBnB, I stopped staying at the casinos. Now I can play however much I feel like without feeling like I'm playing for comps, plus I don't pay resort fees, and it's always cheaper than what the casinos charge, plus the places are generally much nicer than most casino hotel rooms. I saved so much money on my last trip to Atlantic City that way. My visit cost about 1/3 of what I had typically paid.
     
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  16. nostresshere

    nostresshere Mr. Anti Debit Card

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    100% logical.

    But.... so much of Vegas and gambling in general defies normal logic.
     
  17. westcanguy

    westcanguy High-Roller

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    Great idea but... if you've lost 1.2 billion dollars, how would you pay for those ways to draw more people in? Other than profits, which this company doesn't have, there are 2 ways to raise capital. Investors and bankers. Would you invest in a company that just lost 1.2 billion dollars? If you were a banker, would you lend a company money that lost 1.2 billion dollars? The only thing left is raising fees and reducing expenses while trying to maintain a certain level of service.
     
  18. MARK

    MARK Low-Roller

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    Personally I don't understand all the complaining. How do people expect to find $5 minimums and amazing rules at these massive super clean super fancy properties. Someone has to pay for the fountain show and the conservatory. The same people that complain have no issue spending $120 a night at some chain hotel with zero frills at all outside of Vegas. I would say $120 is the minimum for a half decent room anywhere outside Vegas with nothing to do around it. You can't have Boulder highway prices at strip like properties that's just common sense. Yes prices keep going up so has the product.
     
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  19. ROTJob

    ROTJob Low-Roller

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    I also feel like they are contributing to their own demise by gouging for things that are necessities. I have no illusions that I should stay and eat for free for my low rolling $20 blackjack bets. But when I am already paying $200+ plus resort fees per night to stay in your hotel, there is no justification for charging me $8-10 for a bottle of water. I am actually planning my next trip now, and a big factor for me in choosing which hotel is how close they are to the nearest CVS so I can buy a case of water, because one time I got dehydrated there and nearly ended up in the hospital. Water is a necessity of life, especially in the desert. I would be happy to pay as much as $2 a bottle, which would still be an enormous profit margin for them, and they would sell a lot more of them. Instead I have to plan my trip around the opportunity to obtain reasonably priced liquid that will keep me out of the ER.

    Same with food. I am happy to pay up to $500 for a really great dining experience. But many of these properties have jacked the price of everything so high that you can barely eat a meal for under $25. The cost benefit is just not there for most of these options.

    These are just a few of the factors that have cut my number of visits by more than half. I do not mind paying a lot for a really nice room, or meal. But when I am on a vacation and can't even leave the room without someone's hand in my pocket every 5 min, it ceases to be a fun experience and I am more likely to spend my travel dollars elsewhere.
     
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  20. ronc

    ronc VIP Whale

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    I am going to assume that their budget will still include marketing activities even with the losses. You could adjust the focus of your marketing without raising the budget for it as well as taking the other necessary steps.

    We can type about it all day long, but resort fees are a sore subject because they mask the actual price of the room. I'm not unwilling to pay them since it is the price of entry; I'd rather they be honest about them being part of the room price UNLESS you can say that you don't want to use those items covered by the resort fee.
     
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