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Monday, March 17, 2008 | 2 a.m.
Like many readers of the Sun, I was appalled by the story in last Sunday’s paper about the Las Vegas family that was shaken down for hundreds of dollars in tips by the staff of LAX, a nightclub at the Luxor.
I’ve written several columns about the importance of excellent customer service, and after reading Sun reporter Jeff German’s story, I’m convinced that — if the squeeze put on the customers in the story is the norm rather than the exception — Las Vegas resort operators need to take immediate steps to eliminate tipping shakedowns in nightclubs in their properties.
In German’s story LAX staff pressured John and Tina Henderson for tips as they celebrated their daughter Marissa’s 21st birthday by taking her and her friends to the club.
Even though the group had a reservation for two small tables, a doorman put his hand out when the Henderson party tried to enter the club.
“It starts here,” the doorman told him, John Henderson said. When Henderson asked how much he’d have to tip, the doorman told him, “A hundred dollars will get my attention.”
Henderson paid, only to be handed off to three more money-grubbers.
A hostess collected $50 to look up the table reservation.
A maitre d’ was given $100 to lead the party into the club.
A host was given $100 to take them to their tables.
Later, a man claiming to be a “security guy” came over to collect $100 to ensure the group’s safety at the club.
The group also paid $120 in $20 increments to be able to avoid long lines to use the restrooms.
All of these tips came on top of tips given to the waitress and busboy as well as the group’s $1,378 bar tab, which included a 28 percent service charge.
My first reaction to the story was to think that I would never have paid the tips, and would have left.
But the Hendersons wanted to celebrate their daughter’s birthday and didn’t want to spoil the evening, so they paid. And paid and paid and paid some more.
Certainly many Las Vegas visitors do the same every evening.
I don’t object to tipping; in fact, I think tipping generously is a good thing, and I regularly tip folks: valet parkers, poker dealers, dice dealers and, of course, waiters and waitresses.
But the tips John Henderson told German about were not gratuities. They were demanded payments.
Although a 28 percent service charge seems high to me, I don’t have a problem with it if the number is disclosed up front.
And then, if the club wants to divvy that money among the waitress, busboys, hosts, doormen and even “security guys,” fine.
And if a customer wants to tip above and beyond the service charge, fine.
But the shakedowns need to stop.
Casinos that operate their own clubs (Wynn and Station Casinos among them) say they aren’t allowing their workers to put the squeeze on customers. The many casinos that don’t operate clubs themselves (including LAX at Luxor and Pure at Caesars, run by Pure Management Group) need to make sure the operators know that the casinos won’t stand for customer shakedowns.
Nightclubs have become significant moneymakers for casinos, and an evening out at the nightclub has replaced an evening at a production show for many younger customers.
Casinos need to protect their new moneymaking assets and emphasize customer service in the clubs rather than maximizing cash extraction.
The patrons who are shaken down for ridiculous tips aren’t going to go back to Phoenix, Chicago or Newport Beach, Calif., and complain about the nightclub operators.
They’ll tell their friends how they were ripped off at Luxor or Caesars Palace. Or, even worse for all of us, in Las Vegas.
It’s time for our resorts to stamp out tipping shakedowns in nightclubs.
unfortunately the parents should not have tolerated this outright shakedown.while trying not to ruin there daughters 21 st.birthday they allowed themselves to become victims,and if there locals i can only say shame on them.the casino management groups should not be leasing out there bar and club business anyway its far to lucrative when managed properly.the state of nevada alcohol control people should be investigating these type clubs and closing them down if that happened once or twice you would see a response from casino management they wouldnt be able to tolerate the embarrasment asociated with there casinos and gaming property..
Yes they need to be careful that it doesn't become so much about the money that Vegas isn't fun anymore. People would stop coming.
Back in the early 80s, the owners of Studio 54 in New York City - Ian Schrager and Steve Rubell - were indicted for tax invasion from skimming cash from the nightclub. Could it be that 25 years later, this could happen again in the nightclub capital of the world, Las Vegas?
Here is the bottom line boys and girls...and Ex's - ex-employees, ex-wifes and ex-girlfriends: Your opinion doesn't matter either way in a court of law. Neither you, nor this newspaper nor I can change the reality of what has or has not happened. These people can be great or horrible in one way or another, but it won't matter once they enter into court - because the law (and FBI and IRS) only cares about the facts of the case - not YOUR opinion. So, if you break the law and get pinched, you only have yourself to blame, not this paper or people you may have rubbed the wrong way in the past. More money, more problems.
The Casinos need to be held accountable for shady businesses run on their properties. It is obvious that this cash and carry business needs to be reigned in and the management groups that extort money from their patrons need to change their ways.
There is something seriously wrong when a "doorman" can make 10k per night. Do you think he is really just pocketing all that dough without sharing it with his bosses? Not a snowballs chance in hell.
None of you -- including Jeff Simpson -- get it. This is LAS VEGAS, and tipping makes the world go 'round. These folks DID NOT HAVE TO TIP to have a good time that night, but THEY CERTAINLY HAD TO TIP to get SPECIAL TREATMENT at the WORLD'S TOP NIGHTCLUB (of the moment). There were plenty of options available to them and they chose the Mercedes option instead of the Kia option, so they paid Mercedes prices. End of story. Stop your whining about this non-story and, please, stop trying to strip Las Vegas of its ethos.
No matter how the extortionate tip apologists try to spin it, it is just plain wrong to squeeze customers for ridiculously large tips. Charge people whatever the market will bear, but don't hit them again and again with tip demands.
RPJ claims to understand Las Vegas better than the clear majority of people who are appalled by the tip demands at top Las Vegas nightclubs, but the reality is that RPJ wants to maintain an unjustifiable system.
I applaud the columnist for sticking up for customers, who deserve to know exactly what things will cost. Prices and service charges should be clear, and tipping beyond those service charges should be an option. It is absurd for anyone too think that doormen, hosts or maitre d's should be able to demand $100 tips for merely doing their jobs. Tip-gouging is NOT the Las Vegas ethos. Superb customer service should be.
I've read about the plight of this Henderson couple a time or two now, and I feel the need to request that the rest of their night's story be brought into the daylight. I'm afraid Pure was the cheapest part of the evening!
On the way to Caesars, they passed by a homeless man at the intersection of Flamingo and I-15 and were "forced" to give him $100 in order to continue on. And, darn the luck, another money-hungry coin peddler was there at Las Vegas Bld and Flamingo with their hand out for another $80. They turned left and immediately got stuck at a stoplight for a $150 windshield wash. Another $500 to valet, $40 to the tourist from Georgia for opening the hotel door, $75 to the shoe shiner (he didn't shine any shoes, but looked lonely), and, right before they approached PURE's dangerous ropes...they gave someone a grand to gamble with just for the hell of it.
Kidding aside, it sounds like the couple wanted to make sure they were tipping right and outright asked everyone, past the doorman who pressured them, if they needed to be taken care of. I’m not dodging the seriousness of the IRS investigation (huge deal), but these other folks should stay in Henderson.
If you keep tipping the same bathroom attendant to skip the line, you're either drunk, stupid, or trying to show off. Once or twice and you should be good for the night (how often are the peeing anyway? 6x? see a medical professional!). You don't have to tip security, even if they suggest it. And if you did, they should walk you past the bathroom line anyway. And I'm a little confused on the 900 people who helped walk them in the club. Did they make a big circle or something? Simple process. Door --> host stand --> host walks you to table --> cocktail waitress. Who are the rest of these people? Are they sure they weren't just other people in line screwing with them? Haha.
- JC
It's nice to see that thank fully some people (Jeff Simpson included) seem to understand the negative impact these clubs practices are having on out of town guests that visit the club. As well the negative impact it has on people decision to return to Las Vegas in general.
It’s also a farce to have Wynn say it does not happen at his club. I have seen it happen in person at Tryst.
I would also like to rebut RPJ's comments that tips were not required, and that there are other options in the hotels. From past posts RPJ has said he/she covers the club seen in Las Vegas so I would really like to know what other options there are in Luxor to have drinks, AND DANCE. There are none. LAX is the only venue for that in Luxor, the others are lounges only. SO if a guest who was staying at Luxor wanted to go out for an evening for drinks and dancing what is their “other” option. As well anyone who has been to one of these clubs in last year knows that waiting in line for your “fair” turn will not happen. You will stand inline for hours on end while the door staff only deals with the few that are willing / able to tip the door / hostess / server excessive amounts. The only Mercedes options happening is the staff being able to buy one from the week’s worth of shake downs.
Jack Colton considering your web site, why would you want this practice to stop. You would seem to benifit from it, so I'm sure you would want to have it continue.
Hey RPJ, do you actually bother to read the cr*p that you post?
"These folks DID NOT HAVE TO TIP to have a good time that night, but THEY CERTAINLY HAD TO TIP to get SPECIAL TREATMENT"?
Are you kidding me? Honoring a reservation by allowing a customer to walk in the door is "special treatment"? Confirming the reservation and showing the customer to a table is "special treatment"? Ensuring a customer's safety is "special treatment"? Being able to use the bathroom without having people cut in front of you is "special treatment"?
What world do you live in?
I live in Las Vegas, Mr. Arizona State, and I have been participating in covering the nightlife scene here (and in neighboring cities) for years. News Flash: The clubbing scene is NOT egalitarian -- that's why it is a "scene" whose history stretches all the way back to Studio 54 in NYC. If you do not look the part, you aren't getting in; if you can't play the part, you aren't getting in; if you can't pay the part, you aren't getting in. The levels of expectation for each of these unspoken requirements depend on the establishment. To get into what is likely the hottest international nightclub of the moment (whether or not you or I agree with this is irrelevant) is difficult, but there are strategies one can employ to get in for the privilege of paying $10 for a hastily poured Red Bull and vodka. One of those strategies involves being a celebrity. Another involves being a group of hot young women. Another involves being a group of well dressed and well monied men. Beyond that, it's a free for all. Again, it's not egalitarian; nightclubs are NOT created to provide the average person a night of dancing (anyone who has tried to dance on one of their crowded "dance floors" knows this first hand), they are created to offer a very select clientele an place to preen and be seen, and that's it; anyone else who gets in does so out of some combination of persistence, luck and cash. It may not be "fair" but it is the way it is, and as a private business, they have every right to refuse service to anyone. Again, as someone who spends five of seven nights in Las Vegas experiencing the nightlife, there are PLENTY of nightlife options around Las Vegas that are not LAX (i.e.: not the "nightclub of the moment"), and do not require excessive tipping to access and enjoy. Just because one is staying at the Luxor does not mean they can afford all of the amenities that hotel offers. The only news story here is the reputed underreporting of cash tips - everything else is sour grapes because money will always be used to buy exclusivity, either directly or indirectly.
RPJ: No one denies the "right" of a nightclub to conduct business the way its owners want. But it is foolish for the Las Vegas hotels to allow poor customer service that will antagonize guests like the Hendersons, or anyone else. Your experience covering the "nightlife scene" has apparently blinded you to the reality of what is rude (squeezing folks for huge tips). If clubs just charged patrons set prices for admission, table service, bottles and drinks, even set service charges, that would be fine -- no matter how high the prices. It's not a matter of how expensive. It's the rudeness of money-grubbing service personnel hitting people up for ridiculously high tips. All the clubs need to do is charge a service charge large enough to divide among the service providers, who then can be left to providing superb customer service instead of shaking down customers. The news story is about shaking down people for tips, not high-priced exclusivity. There's nothing wrong with high prices, but there is something very wrong about customers being bombarded by service providers demanding big tips just to do their jobs.
RPJ to quote you "nightclubs are NOT created to provide the average person a night of dancing"
Maybe my look at this is a little differnt but to me the bottom line is the practices of theses clubs that are being operated in a hotel casino will effect the hotel casino. This article came about because of a henderson couple but it has been happening to out of town guests as well.
Consider a few things. Who do you feel is the type of person that is staying and playing at the Luxor for example? I'm pretty sure that 99% of the guests at Luxor are "average". Luxor is not a exclusive resort. Luxor is advertising these venues as a draw to stay at their hotel. If as the average guest you have no chance of useing this venue, as the average person will not be able to just shell out cash right and left and may not fit the "look" you say is required, and the club is filled with non-guests how does this venue help the hotel keep average guests coming back. Even worse if one of these guests does get raked over the coals in this venue it will make them have a bad visit, and question if they should bother staying there again, or for that fact if they have enough bad issues maybe not visit Las Vegas again. Add the fact that there are allegations of illegal actions, and it turns off the average guest even more.
Studio 54 was a stand alone club and did not have to worry about pissing off hotel guests. If as a club you want to operate in the manor you suggest my personal feeling is that it is not a venue that should be in the hotel. As a average hotel guest if I can not even visit the venues in the hotel I am staying in what good are they to me. Which changes over to why stay at that hotel to begin with, or for that matter why even fly xxx amount of miles to gamble.
Are clubs for eveyone, NO.
Do the hotels need average guests, YES.
Is allowing a clubs practices to effect hotel guests in a negative way good for business, NO.
My final word: I never said I agree with the practice, I just see it as an indirect way of catering to a select audience. The air of exclusivity brought on by this "indirectness" is one of the main reasons the Hendersons (or anyone) wanted to go to LAX in the first place.
Although RPJ has effectively dodged the issue, I'd like to address the first thing he said:
*** None of you -- including Jeff Simpson -- get it. This is LAS VEGAS, and tipping makes the world go 'round. These folks DID NOT HAVE TO TIP to have a good time that night, but THEY CERTAINLY HAD TO TIP to get SPECIAL TREATMENT at the WORLD'S TOP NIGHTCLUB (of the moment). ***
Unfortunately, what happened here was extortion, not tipping. There was NO choice but to pay these fees or they would be denied service.
And I confess, I haven't been to Vegas in well over a year, and I really doubt I ever will be there again, as trip after trip of tip-hustling dealers and long-hauling cabbies were topped off on my last visit when I parlayed a $1 hardway bet (under my control) to a tip well over $400, and I didn't even get a thank you. I guess I didn't tip enough to get that courtesy. Not like I was holding out for a McDonalds comp or anything.
Meanwhile, the gambling stakes that would barely even get me a snack bar comp in Vegas gets me infinitely better treatment at the table games in Wa. State. And I have to pay for my own alcohol there? Oh no, paying for a drink with a modest tip on top is SO much more expensive than a free drink that comes with a much larger expected tip to get served more than once every vernal equinox.
My friends who go to clubs say they hate being asked to tip. They don't mind tipping (within reason) but hate when employees put the pressure on to tip.
I usually go to LAX, Im always put on the guestlist. Ive probally gone 4-5 times, one time I went they guy looked me up, said yeah just take care of my guy at the door. I simlpy turned around and didnt go in.
Dear RPJ, First allow me to give you a lil history on myself. I was born and raised in Las Vegas. My father continues to be some what of a ledgend in the gaming business. He has successfully served as the GM or president of many strip properties. I myself was a top manager at some of the most profitable and successful night clubs in the country. Including the Shark Club here in Las Vegas and Billy Bobs Texas in fort worth. I think I have the credibility to state that if any casino operator followed your line of thinking, they would not be very successful. There is a reason the Fertitta Bros. and the likes of Steve Wynn dont let people like you count their money in there clubs. It is that you are a self absorbed, short sighted Hog. Benny Binion said it best when he said.."hogs get slaughtered and pigs get fed" The visitors and locals of Las Vegas deserve better!!
There are much better clubs in Las Vegas than LAX. The club layout is very simple, boring, and gets old quick. This place is full of narrow walkways and there's really no space for anything. Bouncers bounce you around the place since you can barely stop anywhere to take in the environment. I also tried the VIP service there and they were very unprofessional. I argued with a bouncer for half an hour about how I could go in to the VIP area with my group but only the women were allowed to drink. He then said he doesn't really have to let me in to begin with. After much long, drawn out drama he said to have fun and do whatever we want. Everything put together just easily killed the mood. Both of my visits there were terrible. If you want a good club to go to I highly recommend Tao. Don't even bother with LAX!