Quote:
Originally Posted by Steve00007
Actually all the anger and complaining has resulted in some significant changes. MGM backed down quite a bit by giving Pearl members free parking, giving poker players much easier ways to get free parking, and giving locals 6 free months. That's a significant change from their original position that only players with high status cards MIGHT get free parking.
If people just "moved on" or "quickly got over it" several months ago when the news came out, then what would stop them from charging $20, $30 or more?
Do you think that MGM has simply decided to make less money in light of customer complaints?
I don't.
Complaints have deferred some costs. Shifted the burden, perhaps. But you're giving way too much credit to the fact that they're giving X level free parking and Y customers a few free months. Timed offers expire and offers tied to a card tier are very easily manipulated by adjusting what it takes to get that tier. Shifting the burden from locals to tourists just means less of the tourist money going elsewhere, instead of dropping $500 on accomodations, and $300 on food, they drop $510 on accomodations and $290 on food and the food industry takes the hit.
If you want a long term viable solution, it has to include not just complaints about how this affects you, but a viable counterproposal that's going to satisfy the corporate raiders and activist investors circling MGM. Would you accept layoffs (good for the corporation, bad for the community)? Putting properties in a REIT (don't know much about pros and cons of this but CET did it)? More 6:5 blackjack? 39 square roulette? Raising room charges? Petitioning the city of Las Vegas to cut MGM tax breaks?
Simply expecting MGM to make less money is unrealistic. And maybe this thread isn't the place to discuss it. But before you start sucking each others' dicks over how great it is that parking is less than expected, consider what that really means. MGM has left a way to increase its future parking revenues with very little scrutiny, for example, raise the bar required for Pearl and raise the points earned from poker by a percentage less than the amount raised (e.g., raise poker points by 5% and the requirement by 10%, basically devaluing poker points). That's an ominous sign. They're not done.
The long term solution is one where MGM does well enough to be a stable company, tourists still feel like Vegas is something special, and there's enough extra money splashed around that secondary industries like poker are viable too.
To be clear, I'm not convinced MGM is doing its parts in this either. Like gobbo said, MGM seems to be trying to make Vegas a more inconvenient version of the local casinos all over the country. That's probably a short term neutral, long term negative move.