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The Street
The Street
Daniel Kline

Las Vegas Strip visitors face outrageous new fee

The Las Vegas Strip has found itself at the center of Joe Biden's fight against hidden fees. 

The president has pushed to eliminate junk fees, and the administration has pressured companies to disclose the total cost of their offerings so consumers know what they are paying.

Some industries have fought this effort. Cable-TV and internet-service providers, for example, advertise low prices without mentioning nonoptional fees like charges for broadcast networks and regional-sports networks.

Related: Las Vegas Strip casinos crack down on a popular vice

Consumers would think that the first price is what they're actually paying, but that's not the case. The fees are added to their bills and they can't opt out.

In some cases people are paying double the advertised price once the fees are added in. That's clearly unethical, but it is legal, and Biden has fought to outlaw these hidden fees.

The entire cruise industry, at least in the U.S., has moved to include port charges, taxes and fees in advertised prices, so customers know exactly what their cruises cost before they buy them.

That does mean showing higher number up front. But since those fees, taxes and port charges are mandatory and must be paid even for ports you don't get off in, it's a true display of the actual cost of the vacation.

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Most Las Vegas Strip hotels charge a resort fee.

Ethan Miller/Getty Images

Hotel fees are a Biden target

Biden has also urged hotels and resorts to show their full daily prices before someone books. That means showing any so-called resort fees that customers must pay even if they don't plan to use any of the amenities the fees cover.

"We're going to ban surprise resort fees that hotels charge on your bill. Those fees can cost you up to $90 a night at hotels that aren't even resorts," Biden said during his State of the Union address.

Resort fees cover things like pools, WiFi, gyms and other amenities. Nevada's congressional delegation, which is mostly from Biden's Democratic Party, has an issue with his plans on resort fees.

"I’m sure the president knows Las Vegas resorts really are resorts,” commented Rep. Dina Titus (D-Nevada). “I commend and share President Biden’s view that customers need to be protected from exorbitant ‘junk fees,’ and I applaud efforts by the Federal Trade Commission and hotel operators to ensure transparency in pricing.”

Related: Las Vegas Strip casino closes pop superstar residency

The remarks were first reported by Casino.org.

“I’ll make sure this administration’s proposals stay focused on eliminating surprise fees, not punishing our world-class hotels and casinos for charges they already disclose up front," added the state's Democratic Sen. Catherine Cortez Masto. 

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Las Vegas Strip operator adds a new fee

In many cases, report operators want you to book directly from them. That way they don't share any fees with third-party operators and make more money.

Usually, that's also a way for consumers to get better prices, but it's not the case with MGM Resorts International (MGM) properties on the Las Vegas Strip. 

MGM Resorts appears to be charging $15 extra per room, per night if the room was reserved through a human. The charge will show up on your final receipt upon checkout, where it’s called an 'ICE Contact Center Fee.'" Casino.org reported.

The fee does not apply for people who book through the company's online reservation system.

Related: Royal Caribbean quietly raises the price of popular cruise add-on

Many on social media were outraged, seeing the change as an affront to seniors who may not be as technically savvy as younger consumers. Others see the change as an attempt to cut costs and fire employees.

“@MGMResortsIntl trying to phase out their Reservations department by slapping a $15 per night fee on every booking you make with a live agent in their call center is disgusting,” @HeatherBenson75 tweeted. “They do NOT care about their employees!”

MGM Resorts did not respond to Casino.org's request for comment. 

Are you taking a cruise or thinking about taking one? Visit our Come Cruise With Me website to have all your questions answered.

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