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Cell Phones Costing Las Vegas Casinos Big Bucks

May 6, 2003

Gerard Ramalho Reporting

When the nation's economy took a hit -- Las Vegas hotel-casinos suffered. But now that the economy is struggling to rebound, our hotels are losing revenue from another source. News 3's Gerard Ramalho reports how hotel guests apparently aren't using room phones very much anymore.

Usage is definitely down, and you can probably guess why -- cell phones. For years, hotels have relied on extra revenue from the room phones, but the calls can be expensive. And guests are beginning to catch on.

"I prefer a cell phone."

"I prefer to use the cell phone... It's more convenient."

Need to dial home when you're out of town? Chances are you'll reach for your cell phone. As coverage areas expand, cell phone rates seem to drop... and hotel phone use is simply dialing out.

"They're going to have a difficult time competing in the phone business. They're going to have to find other areas for the revenue."

When you take into consideration those hotel phone surcharges -- the cost of making a cell call, can be about one-tenth the price -- or even less.

A recent study showed room phone usage was down about 22-percent. That translates to a loss of: hundreds of thousands of dollars lost for Vegas hotels.

"Cell phones are clearly cheaper. But the signals aren't always clear. That's why it's unlikely these room phones will ever be phased out completely."

Hotel managers say their primary consideration is customer convenience. "The guests still want the option. They want to decide when and what they use and at what time they use it."

Many hotels now offer services like web-access. "It gives you high-speed wireless access -- from anywhere on our network."

But a new contraption called a wireless air card does the same using your cell signal. For some, "hanging up" old habits isn't easy. But those in wireless industry say it's inevitable.

Even though Las Vegas has more hotels than most cities, we probably won't suffer from the lost revenue as much as other areas. That's because our hotels get additional revenue from other sources, such as gaming and entertainment.

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Cell Phones Costing Las Vegas Casinos Big Bucks

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