Las Vegas hotels adopt dynamic pricing in gift shops and bars as visitor numbers fall
Properties including Bellagio, MGM Grand and Mandalay Bay are charging higher prices for items such as water, sunscreen and beer depending on day and time, prompting consumer complaints
Las Vegas hotels have begun applying dynamic, demand-dependent prices in on-site gift shops and bars, charging more for staples such as bottled water, sunscreen and beer at busier times, according to an investigation by the Las Vegas Review-Journal.
The pricing practice, long used by airlines and ride-hailing apps, was observed at several Strip properties, including Bellagio, Mandalay Bay, MGM Grand and Caesars Palace. The Review-Journal found examples in which prices rose by several dollars depending on day and time.
A guest at MGM Grand, Scott Rutledge, told the newspaper he paid "$2 or $3 more" for a beer on a Saturday night than he had earlier that afternoon and called the practice "maybe a bit dishonest." Rutledge said he would buy the beer at a nearby CVS on future visits to avoid higher on-site prices.
The Review-Journal reported that a bottle of sunscreen at Mandalay Bay rose from $36 on a Tuesday morning to $42 on a Friday afternoon. At the Paris Las Vegas, bottled water was listed at $8.45 early in the week and $8.95 on weekends in the newspaper's review of hotel pricing.
The findings come as Las Vegas visitor numbers have declined sharply. July attendance fell about 12% from the same month last year, a decline of roughly 420,000 travelers, the report said.
Hotels have increasingly sought ways to bolster revenue streams tied to guests as broader tourism trends shift. Dynamic or surge pricing allows retailers and operators to vary prices in response to changes in demand and supply; the strategy is widely used in sectors such as airlines and ride-hailing.
The Review-Journal's account cited spot checks of on-site convenience stores, bars and vending operations and compared prices at different times and days. Some guests and consumer advocates have expressed frustration with fluctuating prices inside resort properties, saying they can be difficult to anticipate for travelers.
Hotel companies and their representatives did not provide comments in the Review-Journal report attached to the pricing examples. The newspaper's reporting prompted conversations among patrons about alternatives, including purchasing items off the Strip at nearby retail chains where prices may be steadier.
Analysts say on-premises retail and beverage sales have been an important source of ancillary revenue for Las Vegas resorts, complementing room, gaming and food-and-beverage earnings. While dynamic pricing can raise revenues during peak demand, it can also prompt reputational concerns if guests perceive the practice as opaque or unfair.
Las Vegas has experienced fluctuating travel patterns in recent months amid changing consumer behavior and broader economic pressures. Resorts and retail operators that adjust prices based on demand are following a commercial model used in other industries, but the application to everyday items inside hotels has drawn scrutiny from travelers and local media.
The Review-Journal's reporting highlights specific price variations observed on the Strip; broader industry data on how widespread dynamic pricing is across Las Vegas resorts and its overall revenue impact were not detailed in the newspaper's findings.