It has been a week since MGM Resorts International announced its plans to “enhance guest parking experience” but the idea of breaking one of Las Vegas’ golden rules has just started to sink in with tourists and locals as well.
On Friday January 15th MGM Resorts International released an official statement communicating the companies’ plans to upgrade existing parking structures, build a new parking facility, and implement fees for self-parking and valet. The upgrades include a parking guidance system that allows guests to check availability from a smartphone, LED signage, and elevator and escalator enhancements. The new parking facility will be located at the back of the Excalibur Hotel, it will cost $54 million to finish and it will have space for 3000 vehicles. The biggest news, however, was the future implementation of a “modest fee for customers utilizing valet services or self-park facilities”.
For months there were rumors going around about MGM Resorts plans to start charging for parking, a common practice in most big cities but only rarely done in Vegas (when Delano opened in September 2014 for a brief period of time parking was not free). A final list of rates has yet to be announced, but so far it is known that self-parking will cost $10 per day and valet $17. Social media and travel forums were quick to react, and most feedback has been negative so far. On Facebook people have spammed MGM Resorts International page with disapproving comments: “Paid Parking? Wow! That is very, very poor judgement…”, “Boycotting you from here on out until you get rid of parking fees…”, and “…They could care less about their loyal customers…” were some of the comments regarding the parking and valet fees. The Las Vegas forums on the popular Trip Advisor site also exploded with anger following MGM Resorts International’s announcement; some users even theorized competing companies such as CET and Wynn would soon follow MGM’s steps.
A spokesman for Wynn Las Vegas told Lavish Vegas that they have no comment on MGM’s parking plans and are monitoring the matter. It will be a matter of speculation for months to come whether other resorts decide start charging for self-parking and valet or not. Gordon Absher, MGM’s Vice President of Corporate Communications, shed some light on the company’s plans and answered some pressing questions for us. Absher admits that MGM expected some of the public might react negatively to the news, but insists that MGM had been studying their parking facilities for months: “We’ve evaluated customer comments, analyzed future needs and the changing expectations of our guests.” Absher assures that the new parking will help MGM enhance the overall guest experience.
When asked how MGM Resorts plans to change the negative public perception about parking fees in Las Vegas, Absher commented that MGM feels the improvements made to the facilities will be welcomed changes: “Customers who have experienced these enhancements at other facilities react very positively to news we are bringing them”. Absher also claims that MGM is confident visitors don’t consider parking to be a top aspect when deciding where to stay in Las Vegas, thus they do not expect an important decline in guests due to the announcement.
MGM Resorts International is also in the process of finishing the new Las Vegas T-Mobile Arena situated between the New York New York and Monte Carlo resorts. When the Arena project was announced, no additional parking structures were planned to be built; MGM Resorts Chairman and CEO Jim Murren argued that there was enough capacity in nearby parking garages to handle events taking place at the new venue. However, last week’s announcement on MGM’s plans to build a new parking structure might seem to contradict Murren’s statement. Absher clarified for Lavish Vegas that those are two separate issues:
Our current facilities provide adequate parking to meet local requirements for the T-Mobile Arena… The new parking facility on the Excalibur campus will certainly serve the T-Mobile Arena, but it is also designed to meet anticipated needs of many future customers in this area. As Las Vegas visitation continues to grow, our enhanced parking facilities and the new one we are building will serve visitors attending events in all three MGM Resorts arenas, as well as restaurants and other entertainment venues at our nearby resorts.
MGM Resorts International is confident on its decision to implement the unpopular parking and valet fees; all eyes are on MGM, and if successful other resorts may soon follow.
Photo courtesy of MGM Resorts International
