Harrah’s sees $$ in resort-fee anger
http://www.lasvegassun.com/news/2010/aug/12/harrahs-sees-resort-fee-anger/
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Harrah’s sees $$ in resort-fee anger
By
Liz Benston (
contact)
Thursday, Aug. 12, 2010 | 2:01 a.m.
Resorts nationwide have jumped on the resort fee bandwagon as a relatively painless way to boost revenue in the name of convenience. In fact, Harrah’s Entertainment — which has denounced the mandatory charges — estimates Las Vegas visitors spent more than $12 million in June alone for bundled amenities such as local calls and gym access.
The company capitalized on its “no resort fee” policy last month by launching a Facebook page that invites consumers to “join the fight against Las Vegas resort fees” and a hotel booking website for the company’s Las Vegas properties called
vegasnoresortfees.com, which the company hopes will pop up when consumers surf the Net for hotels that don’t charge the fees.
“I don’t think people will get used to paying these fees,” said Michael Weaver, Harrah’s vice president of marketing for the Las Vegas region. Just as consumers will choose airlines that don’t charge baggage fees, Weaver said some hotel customers are avoiding hotels that charge resort fees.
Consumer advocate Christopher Elliott agrees, saying travelers upset that fees aren’t adequately disclosed are boycotting hotels that charge them. “People are outraged,” said Elliott, who runs the
Travel Troubleshooter blog. They have every right to be, he said, as such fees should be included in the advertised room rate rather than tacked on to the final bill “so that you believe their rooms are cheaper than they actually are. Quite simply, it’s lying.” Hotels with resort fees argue that bundled fees are cheaper and more convenient for customers than charging them piecemeal for the same amenities.
At least 10,000 people have signed up through the Harrah’s “no resort fee” Facebook page and booking engine for a chance to win $21,900 — the equivalent of a $20 resort fee each day for three years.
Hotels don’t charge the fee to provide extra value to consumers because the services they bundle aren’t things most visitors use, Weaver said. Instead, the fees allow hotels to advertise lower room rates and are anathema to a company that generates most of its profit from repeat customers.
“We follow what our competitors are doing ... and we have witnessed some unpleasant conversations in (their) lobbies,” he said.
Harrah’s may be on the side of the consumer when it comes to resort fees, yet the company charges a $10 fee for reserving a Las Vegas hotel room by phone, Elliott said. Harrah’s says the fees help pay for customer service staff and are disclosed, giving customers the option of booking online and avoiding the charge.