A Las Vegas visitor was shocked to discover that a one-liter Fiji water bottle in their Aria Resort & Casino minibar cost $26. In contrast, the same bottle was available at the hotel’s Starbucks for $7.45 and nearby stores for under $3.
At a Glance
- A guest at the Aria Resort & Casino in Las Vegas was charged $26 for a one-liter bottle of Fiji water from the minibar.
- The incident went viral as an example of extreme price markups. A can of Coca-Cola in the same minibar was priced at $13.75.
- The news comes as a federal judge has dismissed a class-action price-gouging lawsuit against major Las Vegas resorts, including Aria’s parent company, MGM.
- Experts note that hotels use high minibar prices to push guests toward other on-site shops and restaurants.
- The strategy has been criticized for potentially damaging Las Vegas’s hospitality reputation during a tourism downturn.
The $26 Water Bottle That Sparked Outrage
A guest at the Aria Resort & Casino discovered a one-liter bottle of Fiji water in the minibar priced at an astonishing $26. A social media post about the bill went viral, highlighting items like a “deluxe” can of Coca-Cola for $13.75. “‘It’s a regular can of Coca-Cola in case you wonder what is deluxe,'” a Las Vegas blogger wrote in a post covered by the Daily Mail.
The pricing is particularly notable given that the hotel also charges a mandatory nightly resort fee of $36.28, which does not include complimentary water in the room.
A Price-Gouging Lawsuit Is Dismissed
While the minibar pricing was causing a stir online, a major class-action lawsuit against Las Vegas hotel operators for alleged price-gouging was dismissed. According to a report from KTNV Las Vegas, the lawsuit accused major resorts, including Aria’s parent company, MGM, of using a program called Rainmaker to illegally coordinate room prices.
Chief U.S. District Judge Miranda Du dismissed the case, citing “numerous deficiencies” in the complaint. The law firm representing the plaintiffs plans to file an amended complaint.
Convenience Fee or Exploitation?
Retail analysts point to the economics of minibars as the reason for such extreme markups. “Minibars are expensive for hotels to operate, but in the huge Vegas hotels, a lot of effort is involved to keep them stocked,” explained Neil Saunders of GlobalData. He noted that hotels prefer guests to use their other shops and restaurants.
Travel expert Gary Leff, however, sees it as a poor business practice. “This is the perfect example of the kind of out-of-sample cost that makes people feel cheated on a last-gasp trip, leaving customers with a bad taste in their mouth,” he wrote in a post covered by the New York Post.
The Economics Behind the Price
Leff used the classic “diamonds-water paradox” to explain the strategy. Prices are set “at the margin,” not by total usefulness. Water is essential but abundant, so its marginal value is low. Diamonds are non-essential but rare, so their marginal value is high. He then added a sarcastic twist: “Aria in Las Vegas proves there really was no paradox after all. Water in the desert is crucial to survival and incredibly expensive for guests staying there!”
Industry observers suggest these pricing strategies could ultimately harm Las Vegas’s reputation, especially during an economic downturn when visitors are increasingly sensitive to perceived value.
