Business Behemoths Partner in Las Vegas Shakeup

 It comes on the back of a previous fruitful partnership being broken, leaving space for a new multi-million dollar agreement to be made. With these new business arrangements, business in the Nevada Desert is receiving a huge boost. The product sharing looks ready to bring together the two worlds and offer tourists and travelers a greater level of service than ever before.

As reported by Forbes, casino giant MGM recently made public its split from the hotel operator Hyatt after ten years of business together. That was big news in itself. However, even more momentous was the subsequent announcement. That was the news that Marriott would move into the gap left in the wake of this business breakdown. The new partnership has been announced as initially lasting 20 years, taking the agreement all the way until the 2040s. The move will allow loyal customers of both brands to take advantage of a strong strategic pairing. It’s the hope of both entities that this cooperation will help capture a much larger slice of the travel pie.

 

Points Mean Prizes for Bonvoy Members

The main benefit of this new partnership is that it opens up pre-existing loyalty memberships and rewards to a greater pool of customers. As both parties are established brands, they come with a catalog of services that will now be offered to customers of either business. That’s why a lot of the excitement has focused on the Marriott International Bonvoy membership and its rewards for regular customers. Before the new deal, members of the Marriott Bonvoy scheme would collect points on the purchases they made with the brand. They could then exchange these points for several benefits, including free hotel suites, complimentary in-room amenities, and exclusive rates on associated properties. Now, though, this service has widened to take the MGM brand under the umbrella. Now that brand will form part of the already-popular membership scheme.

 

In a report by CNBC, it has been confirmed that the new linking of the Marriot loyalty scheme with MGM’s business will open up a further 17 properties to Bonvoy users. That means that those with points through the program will now be able to spend them at these new venues. That represents a 40,000 room increase for the nearly 200 million members. Those rooms increase the available suites by a little over 2%, meaning that capacity is significantly increased. This, obviously, is specifically important in Las Vegas where the MGM resorts are located. The worldwide hotel chain now has a prominent space on the Strip, opening it up to an audience it didn’t previously have. It is the hope of those in charge at both groups that this move will help drive further growth in the leisure sector.

 

Growth the Name of the Game

As is always the case with big business, every acquisition, partnership, or grouping is a move to improve bottom lines in the hope of sending profits soaring. This latest venture is no different. The MGM Collection with Marriott Bonvoy, as is its official name, looks to take advantage of Las Vegas’ recent return to profitability and growth as it shakes off the effects of the coronavirus pandemic. Yahoo Finance reports that there had been a 1.5% year-on-year growth in the number of visitors to the city in May 2023. This still means that room occupancy and visitor numbers are around 5% below pre-pandemic levels, but it signals that there are reasons to be confident that the status quo will be restored. As such, gambling on the Sin City is clearly a step worth making for the hotel chain.

 

On top of adding capacity to the portfolios of both brands, this deal will also ensure that the loyalty membership scheme covers the digital world. As part of the arrangement, BetMGM transactions are also set to be worth points to members. This means that the program will be one of the most comprehensive in the industry, allowing customers to earn in a number of ways. Because of this, it’s an exciting time for customers of both brands as new markets open to them.