UPDATE: Here Come The New Fees From MGM
You may wonder why we talk about the corporate end of things so much on VT. The answer is simple - the suits make the decisions that affect your Vegas trips in the future. This is where the story usually starts.
MGM Resorts International (owners of the casinos in the M Life program - MGM, Mandalay Bay, Excalibur, Luxor, NYNY, Monte Carlo, Aria, Mandarin Oriental, Vdara, Bellagio, Mirage and Circus Circus) discussed their quarterly earnings with investors.
MGM is embarking on a "Profit Growth Plan" that aims to reduce costs and increase revenue by streamlining hotel operations where possible and adding fees to some hotel services.
MGM is planning on monetizing existing hotel services by adding extra fees. For example - making service requests to the front desk, fridge rentals, equipment delivery, specific housekeeping requests, needing a hand to help move things or have the safe unlocked should you forget the combination.
The company also aims to realize cost savings by unifying hotel operations, products and processes by standardizing hotel offerings across all strata of operations.
A small example of this would be to offer only one brand of bathroom amenities and linens across all core properties instead of allowing individual hotels manage costs, ordering, selection and reporting processes. If you stay in any MGM core property, you'll get the MGM soap. If you stay in top tier properties, you'll get the luxury MGM soap. Co-branded properties (Delano, Four Seasons, Mandarin Oriental) would probably manage their own offerings.
MGM currently has eight versions of towels & linens across all of their properties. They've worked with hotel operations to develop an "optimum specification" to streamline procurement, reduce waste and reduce cost.
They've engaged in similar optimization process regarding food and beverage offerings. They hope to offer the best product, which Murren describes as "farm to table, organic, local", by using MGM's scale to bypass middlemen and negotiating prices directly with cattlemen, farmers and other providers.
UPDATE: we've heard from people in the know that a third strata - Luxury+ - will cover the absolute top tier of room categories - Skylofts, The Mansion, villa offerings at Bellagio and Mirage and perhaps the A.S.S.. These strata will retain custom amenities, linens and other offerings.
MGMRI believes that these changes will all happen behind the scenes with no visible impact to guests.
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