Yesterday I wrote a blog post titled Las Vegas Is More Popular Than Ever And That’s Going To Cost You without knowing that a bomb was about to drop that would nearly break the internet less than 24 hours later.
MGM Resorts dropped a press release titled “MGM Resorts International To Enhance Guest Parking Experience With New Parking Facility, New Technology Amenities And Upgrades To Existing Facilities.” Improvements sound nice but the earth-shattering news was hidden beneath the headline.
“Parking fees will be moderate when compared to similar fees in other markets. An overnight guest utilizing a self-park facility will pay $10 or less.”
A more expensive parking fee will be applied when using valet. Parking fees apply to both visitors and guests of each respective hotel. Hotel guests will still pay the normal nightly resort fee in addition to this new parking fee. There will be no parking fees at Circus Circus, Mandalay Bay Place shopping center in between Mandalay Bay and Luxor and Crystals mall which is next door to Aria.
Additionally, Las Vegas locals will be given a grace period for free parking after the program starts. Locals can maintain their free parking status by enrolling and earning privileges through the M life loyalty program. Non-resident guests can also earn free parking status through the M life program. MGM and M life haven’t revealed specific details on how free parking will be obtained.
Parking Improvements
MGM Resorts will be spending $90 million to improve parking at their various hotels. More than half of the parking improvement budget will go towards creating a new parking garage behind Excalibur. MGM Resorts will construct a $54-million, 3,000-space parking structure near the northwest corner of the Excalibur Hotel campus that will serve to absorb further visitor growth and enhance the experience of attendees of events at nearby resorts and entertainment venues.
The facility has been designed to serve T-Mobile Arena, The Park (in between New York-New York and Monte Carlo) and the Theater at Monte Carlo that will open next winter. Construction of the new parking facility is scheduled to begin in the second quarter of 2016, with completion scheduled in the second quarter of 2017. Parking at In N Out Burger on the other side of the I-15 might be a tastier option. If you park and In N Out Burger you’ll be able to get a double double combo for your $10.
Other improvements to parking at MGM Resorts properties will include the following:
- Redesigned parking facility layouts to improve accessibility
- Parking guidance systems that will guide guests to available spaces
- Mobile technology allowing visitors to check space availability prior to arrival
- Upgraded lighting, LED signage, paint and striping
- Elevator and escalator upgrades and enhancements
Perhaps the best improvement will be the parking guidance systems that illuminate above empty spaces showing helping you easily find an empty parking space. You can currently find this at the Cosmopolitan and Wynn. You will also be able to check real-time availability of parking spaces from a smartphone.
What’s The Big Deal? Here’s The Big Deal
According to the most recent visitor Las Vegas Convention and Visitors Authority data, 58% of visitors arrive in Las Vegas by ground transportation. MGM Resorts says that number increased by 6% in 2015 but the official data isn’t publicly available. That same research shows that 47% of visitors said that they used their own vehicle when traveling around Las Vegas while 12% rent a car.
Using rough visitor statistics, this parking fee may impact over 24 million visitors who drive to Las Vegas and another 2 million plus who rent cars when visiting Las Vegas. On top of these 26 million visitors, you can add locals who visit MGM Resorts properties to eat, drink, gamble and see shows. Parking won’t be validated so locals, in theory, will have to pay a parking free just to eat dinner and/or see a show.
GASP! How Could They Do This?!
MGM Resorts is in a position of strength right now with tourism at an all-time high. They’ve made significant improvements (including a new arena and theater) to their properties and this new fee is a way to A) pay for the expense of the improvements and B) make a profit. Going back to yesterday’s post this is simple supply and demand. If people demand MGM’s product and are willing to pay then they can continue to raise prices.
Eventually, these price increases will be met with lower demand and MGM Resorts will have more supply on hand. Once the price increases reach a peak then MGM Resorts will likely have to decrease prices (including fees) in order to create more demand. If you feel as though the new parking fee is too much then you can stay at other hotels without the fees.
You’re In Control
If you don’t speak with your money today you’ll only encourage Las Vegas hotels on the Vegas Strip to join MGM Resorts and charge for parking. At some point, a parking fee might become ubiquitous like resort fees have in most Las Vegas hotels. If this happens you won’t have much of a choice to take your business elsewhere.
Likewise, if you act with your money today the other hotels in Las Vegas might take note and avoid the backlash by not installing a parking fee. It’s strange to think but the future of the parking fees might be in your hands.
Photo: Wikimedia
UPDATE:
After posting this yesterday, MGM Resorts offered parking fee information on a few other properties.
- Signature at MGM Grand will not be a part of the program.
- Vdara is valet-only so they will be included in the program.
- Veer and Mandarin Oriental are not a part of MGM Resorts (will not be a part of the program).
