Caesars Entertainment Increases Resort Fees
Caesars Entertainment is increasing resort fees as a response to its $1.2 billion loss in 2019. Four of Caesars Entertainment casinos in the Las Vegas Strip will experience this fee increment.
Customers will experience the increased rates at Harrah’s, The Linq, Bally’s and Flamingo. All four resorts are adding an extra $2 on all their fees. This takes the resort fees from $35 to $37. The increased rates along with tax, takes the mandatory fee to $41.95 per night.
Caesars spokesman Rich Broome said the change simply “brings these properties in line with their competitive set.”
Resort fees have been in the news for a while now following the ongoing lawsuits filed by the attorneys general for Nebraska, and Washington. The cases mention that hoteliers are engaging in “deceptive and misleading” pricing menus.
A new Federal legislation stipulates that hotels would need to advertise the correct price of a room. They are mandated to include all add-on mandatory fees pre-tax.
New Acquisition
Eldorado Resort will soon acquire Caesars Entertainment in a $17.3 billion deal. Caesars told stakeholders that the company’s annual income decreased by $1.5 billion in 2019, following an income of $303 million in 2018, to a $1.2 billion loss last year.
CEO of Caesars Entertainment told investors that the company is focusing on efficiency in terms of cost, and operations. He also mentioned that the company was able to cut down $100 million in expenses in 2019. On the other hand, Tom Reeg, Eldorado’s CEO said that Caesars Entertainment needs to cut down cost by $500 million if the takeover should go ahead.
Increasing resort fees now looks like a no brainer for Caesars Entertainment. After all, lowering expenditures while increasing resort fees is a great way to increase costs efficiency. Reports suggest that US hoteliers collected at least $3 billion in resort fees last year.
