MGM's All-Inclusive Deal Is Bringing New Guests to Luxor and Excalibur

^{The All-in package at Luxor and Excalibur is bringing new guests to the two south Strip casinos. (Photo: courtesy of MGM Resorts International)}

MGM Resorts has sold 30,000 room nights from its all-inclusive packages at Luxor and Excalibur in four months, according to the company's recent quarterly earnings call. Nearly half of those have been sold to first-time visitors at MGM properties.

The $330 base price for the packages is for weeknights. As you'd imagine, many of the packages have been purchased for weekends, which are available for a higher rate. The deal still offers value, even if it's a little more expensive.

The Business Behind MGM’s All-In Deal

MGM was the first Vegas Strip casino operator to offer an all-inclusive deal in response to visitor complaints about high prices. Between waived resort and parking fees, food and beverages, activities, and more, the package at Luxor and Excalibur offers significant savings of more than $600.

Bill Hornbuckle, MGM's CEO and president, said the packages have stabilized occupancy and, to a lesser extent, room rates. MGM Chief Operating Officer Ayesha Molino added that the number of visitors booking weekends has helped boost profit margins.

Despite the boost from All-in package sales, Molino said MGM's lower-end properties are still struggling more financially than its luxury properties. Luxor and Excalibur are budget properties with smaller profit margins, and the two casinos account for about 6% of earnings (EBITDA). For that reason, this deal might be more about the emotional connection consumers have with Las Vegas than about greatly increasing revenue.

The economic divide between luxury consumers and budget travelers continues to widen in the country and in Las Vegas. While MGM touted the success of this program, it’s also looking for ways to increase revenue at its luxury properties, Aria, Bellagio, and The Cosmopolitan.

MGM is in a unique position in the Las Vegas casino market. While the high-end properties generate greater revenue, the majority of guests stay in its low- to mid-tier resorts.

The company is still exploring the recent offer from People Inc, the company's largest shareholder, to go private. If the deal is accepted, the company will be able to make changes without having to answer to shareholders or stock analysts.

Are They Really Solving the Value Problem?

MGM appears to be pleased with the financial results of the package deals. The company also thinks it has flipped the negative value narrative from last year.

During his opening comments, Hornbuckle said these packages have "turned the value narrative into a positive story." He later noted, "We've followed it closely through social media and otherwise. It's a great value, at the end of the day, is the bottom line."

The complaints about prices in Las Vegas appear to have slowed down. That's kind of how social media works: topics are hot for a minute, then posters move to a different subject like Jimothy.

Package deals might slightly improve the narrative, but prices outside the deals haven't changed. A cup of coffee on the Strip is closer to $10 than $5. Non-happy-hour drink prices are still in the $20- $30 range. Restaurant prices remain high, and finding discount dining deals can be difficult.

Are the deals helping guests and the casino operators? Sure. 

Did they solve the underlying value problem? Not entirely.

Should MGM be patting itself on the back for solving the problem? Probably not.

Improvements Coming For Aria, Bellagio, and Cosmopolitan

While the All-in deal for Luxor and Excalibur is helping those two properties, the luxury resorts are what move the financial needle for MGM. As we've shared often over the past few years, a relatively easy way to increase revenue is to renovate hotel rooms.

MGM is still considering updating the rooms at Aria this year. It looks like the company that renovated the MGM Grand rooms last year will do the same at Aria when plans are approved. 

Once completed, MGM will move to renovating rooms at The Cosmopolitan. 

Rooms at both resorts are starting to show their age. While rooms at The Cosmopolitan were renovated in the late 2010s, rooms in Aria's main tower have not been updated since the tower's opening in 2009. The Sky Suites were renovated a few years ago.

Bellagio doesn't have the same issue. Rooms in the main tower were renovated in 2021, and the Spa Tower rooms were updated in 2023. Instead, MGM will update the convention and meeting spaces at Bellagio this year. Even though MGM constantly improves these spaces, the announcement comes as convention visitation is exploding.

Hornbuckle also mentioned that MGM is thinking of adding more exclusive villas at Bellagio. Prices for the eight existing villas start at around $3,000, but they aren’t available to book through the company website.

He also mentioned that Carbone Riviera's lakeside dining has been a success, and the company is thinking about ways to offer similar experiences elsewhere.