MGM Resorts International is working to repair its relationship with travelers after a summer marked by harsh criticism over soaring prices across its Las Vegas properties. During the company’s latest earnings call, President and CEO Bill Hornbuckle openly conceded that aggressive pricing — including eye-catching drink costs — alienated customers and damaged the brand’s reputation.

“Shame on us,” Hornbuckle said according to KLAS 8 News Now, referencing a wave of consumer frustration centered around high on-property charges like “the infamous bottle of water” and the $12 coffee at Starbucks. He reiterated the same phrase while addressing specific examples disclosed earlier, including what became a widely cited $26 bottle of Fiji water at the Aria.

The feedback, he acknowledged, wasn’t subtle. Guests voiced clear dissatisfaction, and the pushback became a public turning point for MGM as visitation dipped citywide and the company faced intense online scrutiny.

CEO says company ‘lost control of the narrative’

Hornbuckle explained that the contrasting expectations between budget-minded visitors and luxury travelers were not appropriately reflected in pricing over the summer. With a portfolio spanning high-end resorts like Bellagio, Aria, and The Cosmopolitan alongside value-oriented casinos such as Excalibur and Luxor, the CEO admitted the company failed to align offerings with guest segments.

“We should have been more sensitive to the overall experience at a place like Excalibur,” he said. “You can’t have a $29 room and a $12 coffee. And so we’ve gone through the organization. We think, we hope, we believe, and we’ve price-corrected.”

Bill Hornbuckle also conceded, “We lost control of the narrative over the summer. I think we would all agree to that in hindsight.”

According to Chief Financial Officer Jonathan Halkyard, roughly 90% of the pricing and value changes informed by guest behavior and internal review are now implemented. Fees such as resort charges and parking remain, but MGM says it has adjusted everyday prices to restore value perception.

Soft Las Vegas demand and financial dip add urgency

The reset arrives as MGM works through a challenging business year on the Strip. MGM reported $2.0 billion in net revenue from its Las Vegas operations for the third quarter, down from the prior year, with renovations at MGM Grand Las Vegas contributing to softer performance. Earnings also fell from $731 million in September 2024 to $601 million this year.

Company executives pointed to a combination of reduced airline traffic — including 400,000 fewer travelers flying on Spirit Airlines — a drop in drive-in visitors from Southern California, and weakened international tourism tied to earlier federal trade policies. “July for everyone in the community was a rough month. The summer was rough,” Hornbuckle noted.

Industry trends have compounded internal missteps. As one report highlighted, MGM had already been perceived as aggressive with fees, and the $26 water story amplified frustrations during a period when consumers were increasingly price-sensitive.

Recovery signs and future outlook

Despite the turbulent summer, MGM executives expressed optimism. Hornbuckle said that bookings following the “Fabulous 5-Day Sale” — a campaign led in partnership with the Las Vegas Convention and Visitors Authority — doubled between September 22 and 26, which he framed as evidence the company can restore trust through value-focused offerings.

“We’ll always be that, and we’ll always need to be that,” Hornbuckle said, referring to the importance of affordability in filling MGM’s wide range of rooms. He suggested that strong fall and winter demand could allow MGM to surpass last year’s “all-time fourth quarter.”

Separately, the company confirmed a $256 million impairment charge tied to its decision to step back from the New York City casino license race. However, MGM emphasized it would continue operating Empire City Casino in Yonkers. “We have been and continue to be a proud partner of the city of Yonkers and the State of New York,” Hornbuckle said, stressing long-term commitment to the property.