MGM Resorts International CEO Bill Hornbuckle stunned investors by confessing that sky-high resort fees and parking costs drove away customers this summer. In a bold earnings call, he called it a major misstep, sparking questions about how the casino giant will fix its image and win back travelers.
Bill Hornbuckle, the head of MGM Resorts, made headlines during the company’s third-quarter 2025 earnings call on October 29. He openly admitted that charges like resort fees and parking were priced too high for what the market could handle. “We just lost control of the narrative,” Hornbuckle said, adding that some pricing decisions were badly miscalculated.
This admission came as MGM reported $4.3 billion in revenue, up 2% from last year, thanks largely to strong performance in China. But the focus shifted to Las Vegas struggles. Hornbuckle pointed to examples like a $12 Starbucks coffee at Excalibur, paired with a $29 room rate. He said it was insensitive and hurt the overall guest experience.
Analysts noted this as a rare moment of honesty from a top executive. The company has faced backlash for years over add-on fees that surprise visitors. Hornbuckle promised corrections, saying the team has reviewed and adjusted prices across properties.
In the call, he stressed learning from these errors. MGM aims to balance profits with fair deals for everyday travelers.
How Overpricing Hit MGM’s Bottom Line and Reputation
High fees didn’t just annoy customers; they impacted business. MGM’s Las Vegas segment saw softer demand this quarter, with some blaming the pricing strategy. Revenue growth was modest, and adjusted earnings per share came in at $0.24, below expectations.
Hornbuckle highlighted specific pain points. Resort fees at MGM properties often top $50 per night, on top of room rates. Parking can cost $18 to $23 daily, with surges during events. These extras turned budget trips into expensive outings, leading to empty slots and quieter hotels.
Customer feedback on social media echoes this frustration. Posts complain about $20 burgers and $25 drinks making Vegas feel out of reach. One local shared paying $40 for parking at a concert, calling it greed.
MGM’s leaders now admit they pushed too far. The company reported record results in Macau, but Las Vegas needs a reset to attract families and casual gamblers again.
This pricing fiasco shows how quickly perceptions can shift in a competitive market. Rivals like Caesars have kept some fees lower, gaining an edge.
Steps MGM Is Taking to Fix the Damage
Hornbuckle outlined fixes during the call. The company has “price-corrected” at spots like Excalibur, aiming for better value. He mentioned reviewing everything from water bottles to coffee prices to match guest expectations.
MGM plans to focus on the “overall experience.” That includes perks like free Wi-Fi and pool access in resort fees, but with more transparency. Executives hinted at bundling options to avoid sticker shock.
Here’s what MGM is prioritizing:
- Lowering add-on costs at value properties.
- Training staff to explain fees upfront.
- Monitoring market feedback for quick adjustments.
These changes could help in 2026. Analysts predict a rebound if pricing feels fairer.
One key move is automation, like robots for cleaning, to cut costs without passing them to guests. Hornbuckle said this boosts efficiency while keeping experiences top-notch.
Broader Impact on Vegas Tourism and Travelers
Las Vegas thrives on affordable fun, but rising costs threaten that. MGM’s admission highlights a city-wide issue. Visitors now face higher everything, from flights to food, squeezing budgets.
Data from the Las Vegas Convention and Visitors Authority shows visitor numbers dipped slightly in summer 2025, with spending per trip up but satisfaction down. A 2025 survey by hospitality firm STR found 40% of travelers cited fees as a top complaint.
This affects everyday people planning getaways. A family might skip Vegas for cheaper spots like Orlando if parking and fees eat into their fun money.
Industry watchers say MGM’s pivot could set a trend. If successful, it might pressure others to follow, making Sin City more accessible again.
Hornbuckle ended on a hopeful note, saying MGM believes in Vegas’s appeal. But rebuilding trust takes time.
| Fee Type | Previous Range | Adjusted Focus |
|---|---|---|
| Resort Fee | 39−50+ per night | Better value bundling |
| Daily Parking | 18−23 (higher on weekends) | Reduced at select spots |
| Event Parking Surge | Up to $40 | More transparency |
Lessons for the Casino Industry Moving Forward
The fallout from MGM’s pricing errors teaches a big lesson: greed can backfire. Casinos must listen to customers or risk losing them to online betting and home entertainment.
Experts point to past booms and busts in Vegas. After the 2008 recession, properties slashed fees to rebound. Today, with inflation cooling, smart pricing could spark growth.
Hornbuckle’s words signal a shift toward customer-first strategies. MGM’s stock dipped slightly post-call, but long-term gains might come from loyal visitors.
Bill Hornbuckle’s candid admission during MGM’s Q3 2025 earnings call marks a turning point for the casino giant, acknowledging that overpriced resort fees and parking costs alienated visitors and hurt business in Las Vegas. As the company rolls out corrections to restore value, it could reshape how Vegas competes for tourists, offering hope for more affordable trips ahead.
