Las Vegas Resort Operator Reports Drop in Visitor Revenue, Announces Price Corrections

The head of MGM Resorts International has acknowledged that the company “lost control” of its pricing strategy this summer in Las Vegas, citing guest backlash over steep charges such as the “infamous” $26 bottled water at ARIA Resort & Casino. During a recent earnings call, CEO Bill Hornbuckle discussed how the resort giant emerged from a difficult summer in which visitor numbers declined—11 % in June and 6.7 % in August—per the Las Vegas Convention and Visitors Authority.

Hornbuckle said the company has since implemented about 90 % of the planned pricing adjustments to align with guest expectations, noting examples like the $12 Starbucks coffee at Excalibur Hotel & Casino and the high-priced water bottle. He emphasized the need to improve the overall guest experience after what he described as a “narrative loss” on price perception.

Although resort and parking fees remain in place, MGM stated it has taken steps to review its pricing policies across menus, minibar items, and beverage services. The company reported a third-quarter net revenue of $2 billion from its Las Vegas Strip properties, down from $2.1 billion a year earlier, with earnings before interest, tax, depreciation, amortization and restructuring (EBITDAR) falling to $601 million from $731 million the prior year.

While MGM attributed visitor decline to factors such as fewer travelers on Spirit Airlines, a dip in drive-in traffic from Southern California and international travel still recovering, the firm also acknowledged that its pricing strategy played a role. Hornbuckle stated the company is optimistic about booking trends heading into the fourth quarter, suggesting a potential rebound from this summer’s performance.

Source: The Independent