MGM Resorts eyeing Las Vegas revenue boost from fee increases

MGM Resorts International (MGM) plans to boost revenue through a series of small fee increases rather than raising room rates, according to a report by the Las Vegas Review-Journal.

Speaking at the J.P. Morgan Gaming, Lodging, Restaurant, and Leisure Management Access Forum in late March, MGM executives outlined their strategy to both generate additional income and reduce operational costs.

CEO Bill Hornbuckle revealed that the company is targeting fee-based revenue growth, with specific examples such as raising ATM fees and moving existing furniture across their properties rather than investing in new pieces.

“If you’ve bellied up to an ATM machine lately, it wouldn’t surprise you to know that those fees have gone up. Some of it’s fee-based based on general volumes, and we were under-market in a couple of instances,” Hornbuckle said. “We’ve positioned ourselves well, and we’re already seeing a return."

MGM is adopting a strategy similar to airlines, offering low upfront prices but adding extra charges for services like parking and ATM usage. While this strategy has earned criticism in other sectors, MGM is betting on its ability to maintain customer satisfaction despite these extra costs.

MGM's fees, including parking and ATM charges, have traditionally been lower than those of its chief Las Vegas Strip competitor, Caesars Entertainment. But despite these recent increases, which bring it closer to other operators, MGM says customer satisfaction remains high, with Hornbuckle noting strong performance in Net Promoter Scores, which reached an all-time high for Gold Plus customers in the fourth quarter of 2024.

“Our commitment and dedication to guest [happiness] is reflected in our Net Promoter Scores, which set an all-time record for Gold Plus customers in the fourth quarter and for the year,” said Hornbuckle.

Hornbuckle also highlighted that the company has focused on improving its guest experience with renovations at Bellagio, including suite updates, new food and beverage options, and premium gaming spaces refreshes. In addition, MGM transitioned the Cosmopolitan of Las Vegas to MGM Rewards, further enhancing its resort offerings