Are Declining Tourism And Quiet Layoffs At MGM Resorts In Las Vegas A Sign Of Imminent Recession?
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MGM Resorts says the decision is in response to meeting “evolving guest preferences” as fewer people now use in-person services.
There are no changes at ARIA Resort & Casino or Bellagio Hotel & Casino. (Photo Credit: Instagram)
MGM Resorts, one of the major companies in the hospitality industry on the Las Vegas Strip, is making changes to its services. The company is shutting down concierge desks at nearly all of its hotels. This decision affects properties like the MGM Grand, Park MGM, The Signature at MGM Grand, New York-New York, Mandalay Bay and Vdara. These desks will close starting Monday, The Las Vegas Review-Journal reported. There are no changes at the ARIA Resort & Casino, Bellagio Hotel & Casino or The Cosmopolitan of Las Vegas. Guests who need concierge services at MGM Resorts will now be directed to Aria and Bellagio. The report mentions that affected employees are being offered other jobs within the company or given help with their transition.
Concierge desks have traditionally been a key feature of hotels as they offer guests help with booking restaurants, tours, shows and other services. Now, the MGM Grand’s concierge services page mentions assistance with car rentals, tee times and even marriage proposals. Normally, the desk was open daily from 8 AM to 8 PM.
According to the Review-Journal, 34 employees will be affected by these cuts. MGM Resorts says the decision is in response to meeting “evolving guest preferences” as fewer people now use in-person services. Many guests now prefer to use digital options for booking and other needs.
MGM’s Luxor, also owned by the company, already closed its concierge desk earlier. Although the Luxor website still has a concierge page, it now directs visitors to Mandalay Bay for services.
The company operates many hotels on the Las Vegas Strip: Bellagio, Aria, Vdara, the Cosmopolitan, MGM Grand, The Signature at MGM Grand, Mandalay Bay, W Las Vegas, the Four Seasons, Park MGM, NoMad Las Vegas, New York-New York, Luxor and Excalibur.
People are concerned that these layoffs could signal further cutbacks. Tourist-based businesses across the US are worried that a potential recession could cause people to scale back on vacations. Some social media users are linking the layoffs to higher prices at luxury resorts which may be driving fewer people to visit.
One Instagram user sharing the layoff news, wrote, “Obviously America is going through it right now, but specifically in Las Vegas and at MGM Resorts it feels like we are gearing up for lower tourism, a possible recession and department closings. With quiet rounds of layoffs taking place every couple of weeks, is this a restructuring or something bigger?”
Another resident commented, “As a local, I hate going to the strip because everything is overpriced and you have to pay for parking.”
“It isn’t a Vegas problem. It’s a USA problem,” a person wrote.
In March, MGM also reduced its valet and bell services staff at Excalibur. As per the report, the company explained that these changes are not part of a larger budget-cutting effort.
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