Las Vegas Strip Resorts accused of fixing hotel room prices
A federal lawsuit was filed in United States District Court in Vegas to Wednesday, January 26, who alleges that Las Vegas Strip resorts have used an outside supplier to price hotel rooms from 2019.
According to an article written by Ken Ritter to WPXI.comthe outside seller accused of using “algorithmic-based pricing…to the detriment of consumers and in violation of antitrust laws,” is Unlimited Rainmaker Group. It is a corporate owned revenue management group based in Boca Raton, Florida appointed Cendyn Group.
Through by Ritter article, “[t]The lawsuit was filed on behalf of the plaintiffs Richard Gibson and Heriberto Valiente by the lawyers of the law firm Hagens Berman Sobol Shapiro in Seattle and Berkeley, California. They hope to end up making it a class action lawsuit seeking unspecified damages. They base their claims on what they believe to be “federal government antitrust violations.” Sherman Law” through Las Vegas Strip resorts.
So what is an algorithm and how does it apply in this trial? by Ritter the article explains the lawsuit identifies information in a 2017 speech of Maureen Ohlhaussen, an old Federal Trade Commission interim president. In her speech, she “defined a computer algorithm as a set of rules or instructions that can model thousands of ‘extremely complex and nuanced behaviors’ in a fraction of a second ‘and react almost instantaneously to changes'”.
The Las Vegas Review-Journal came from by Ken Ritter article as reporting: “that average daily room rates for Strip resorts hit record highs in 2022, up to $200 a night October during a busy congress month. The Review-Journal went on to report that the average room rate in our city was the highest in history thanks to November 2022, at 175.40 per night.
Las Vegas Strip Resort companies that have been identified in the lawsuit in this alleged hotel room price-fixing conspiracy include MGM Resorts International, Caesars Entertainment, Wynn Resorts, and Treasure Island. If the lawsuit is successful, it will negatively affect their profit margins, and I’m sure these casino giants will fight it with all they have. Stay tuned…
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larry martino is the longtime Afternoon Drive personality on 96.3 KKLZ. The views and opinions expressed in this blog are those of larry martino and not necessarily those of Beasley Media Group, LLC.
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