Wednesday, May 30, 2018

Vegas and Fees: Gutting the Golden Goose.

These days it seems that a lot of companies whose business is ostensibly customer service, have decided that bleeding their core business dry is a solid path forward.

I give you the "concession and franchise fee" or CNF in shorthand. These are insipid fees often added on at bars and restaurants, that add 4.7% to the price of the meal, or drinks, and offer the customer absolutely nothing in return.

In short, it's pure profit for the establishment owner above and beyond the prices listed on the menu.

Unlike the horrid resort fees, which can often cost more than the price of the room and provide customers with ridiculous "amenities" such as "free" wi-fi, local call (seriously?), access to the fitness center etc. CNF fees are charged and provide.....nothing.

Nor should these be confused with a "live entertainment fee" (sometimes called "tax" which is laughable) which often goes to the payment of the live entertainment in question, these fees provide absolutely no benefit to the customer, and should be viewed as a good reason to avoid the properties in question.

Which properties are these?  Per the linked article above (from Vegas news site VitalVegas.com) the following properties charge CNF fees of 4.7%

 - Cabo Wabo Cantina @ Planet Hollywood
 - Rhumbar @ Mirage
 - Hexx @ Paris
 - Beer Park @ Paris
 - Alexxa's Bar @ Paris
 - Chayo Mexican Kitchen & Tequila Bar @ Linq Promenade.

Do yourself, and your pocketbook a favor and refuse to patronize any of these establishments, or any other establishments in the future, who charge this fee. Failure to do so will result in this CNF fee becoming the equivalent of the resort fee, widely implemented and almost impossible to go without.

As I've stated in the past my belief is that these fees are not "fees" in the truest sense of the word, since they cannot be reasonably avoided, but should be reflected as increases to the menu price.  I feel the same about hotel resort fees, and many airline fees. These are listed separately as "fees" to allow the main prices to be unrealistically reduced, showing a price that the customer cannot reasonably expect to pay.

The important thing here is that customers, not the resorts and especially not government, have the power to change this by refusing to patronize establishments that charge this.  Not everyone will, of course, and many will pay the fee, despite it showing on their bill, without even realizing it's there. Unfortunately, most travelers don't do this so their taste of Vegas is bitter due to higher than expected bills.

True, there are some recent rumblings of customers complaining (a lot) and getting these CNF fees removed from their bills but most won't do that. Nor will they take simple steps like purchasing an Ethernet cable and $20 router to get free in-room wi-fi without having to pay the resort fee.

So, not everyone is going to stop patronizing these establishments but if enough people will then the message will be sent. Being angry and screaming and hollering through your keyboard online is not gong to cut it. Taking your money elsewhere will.

The city of Las Vegas has successfully reinvented itself 3 times over the years.  From railroad town to mob gambling town to corporate-owned gambling and entertainment mecca.  At the end of each of these iterations there was always a "dark decade" that preceded something new to come.  When the railroad strike occurred Vegas Floundered until the building of the Hoover Dam. When the Chicago Mob moved in Vegas floundered until the corporations set up shop.

We're now entering what I believe to be the last gasp of the current corporate model of operations in Vegas. While the mafia destroyed things with violence and crime the corporations are going to kill their golden goose through fees and stagnation.  Those of us who love Las Vegas are going to have to navigate some turbulent waters as the MBA wielding managers find ways to improve profits through more and more nickel and dime cuts to the customer instead of innovation.

When you're in the customer service business, intentionally hurting your number one revenue stream (through fees, tightened odds, increased prices, lower perks etc.) is the definition of business insanity/

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