MGM Resorts has acknowledged that its summer pricing in Las Vegas sparked a public backlash and forced the company to make rapid changes. Executives said the controversy began when reports surfaced of steep markups on basic items, most notably a $26 bottle of water at one of its Strip hotels. The episode crystallized customer anger about perceived gouging and made pricing a public relations problem for the operator.
On an earnings call, MGM Resorts’ leadership admitted the company “lost control of the narrative” and described the episode as a mistake. The CEO said the company reviewed its own practices after intense criticism and identified a series of incidental charges and convenience markups that, together, felt out of step with guest expectations. The company linked some of the summer’s weaker visitor numbers to concerns about value, though it also noted other factors such as reduced airline capacity and shifts in traveler behavior.
In reaction, MGM Resorts said it implemented wide-ranging price corrections across many properties. Management reported that the majority of planned adjustments were completed, focusing on drink and minibar pricing, package offers, and lower-tier food options. The stated aim was to realign prices with what guests expect to pay for convenience and to stem the erosion of trust that can result from headline-grabbing price surprises.
Analysts said the episode is a reminder that even dominant hospitality brands are vulnerable when everyday costs become a flashpoint. For customers, the issue was less about a single charge than about a sense that value was being sacrificed for short-term revenue. For MGM Resorts, the public relations fallout translated into awkward headlines and a need to demonstrate responsiveness in order to protect bookings and group business.
Looking ahead, MGM Resorts signaled cautious optimism. Executives said updated pricing, together with marketing efforts and seasonal demand, could help restore momentum later in the year. But the company also acknowledged that regaining consumer confidence takes time and consistent action across properties.
The broader lesson for the industry is clear: convenience pricing must be balanced against customer perception. For MGM Resorts, the $26 water bottle became a shorthand for that lesson — a simple item that exposed a larger vulnerability in how hotels price the small things that shape a guest’s experience.
