ElRancho Vegas was the first hotel and casino on the Las Vegas Strip. In October1942, the Last Frontier Hotel began operations on a site that had previouslybeen known as Pair-O-Dice. In1944, Margaret Folsom bought the tract from Squires for $7,500, and in turn sold33 acres to Billy Wilkerson. Wilkerson was the owner of nightclubs in LosAngeles.
Wilkerson planned to build a hotel of European style with luxuriousrooms. Due to the high cost of materials during World War II, his associateslearned that Wilkerson was out of money and offered financing, allowingWilkerson to keep a one-third ownership stake and operational control. Nowadays,the left numerous hulks of incomplete or unoccupied buildings were dotting thelandscape. These any resorts are constantly battling to lure guests to theirdestinations. Thecurrent electronic distribution environment has made the statement of nighttimeprices the important factor in attracting guests to hotels, but every hotelierwill show the lowest room rate through booking channels, and offer the guestother opportunities to spend money. While there is certainly a small portion ofthe population to which price is not an object, for the vast majority of us, itbecomes an important factor in the selection of a destination. But as anyone who has ever visited aDisney resort knows, that published nightly hotel rate is only a small portionof the ultimate cost of a visit.
Theconcept of the casino changed. Billed as the world’s most luxurious hotel, thecasino was a part of resort destination for entertainment. Since the days ofWilkerson’s vision, pool has been an important component; it has been a costcenter, but the food and beverage service and the cabana have available to boostrevenue value. Some casinos build adult-only pools.
Non-hotel guests mayattend, often at higher charge. The gaming tables set up in the pool area,allowing gamblers to continue playing, while they enjoy the rest. Manyresorts add a fee to charge for amenities, this fee can range from $6 to $25per night. Booking a hotel based on rate alone can be a surprise when the truerate is disclosed at check-in. Many hotels add mandatory daily resort fees.Hotels have other methods of gaining additional revenue above the room rate. Whilethe hotel was allow to add mandatory charges for revenue, but some guestdislike.
The resort fees and additional fees represent a challenge. Anunforeseen symptom of lower rates is that the quality of the guest may change. ADRcalculations based only on published rates can be confusing.
Mandatory fees aretruly part of the daily rate, although usually not reflected in ADR.Calculating the value of an occupied room becomes much more complex when theoptional fees are considered. But if charging those fees drives the guest to acompetitor who offers no fees and free parking, then the battle for additionalrevenue has been lost.(490words)