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MODERN FRONT OFFICE ISSUES AND TACTICS
Costly Blackout in Las Vegas
A 3,000-room Las Vegas megaresort, the Bellagio Hotel, was closed for three days during
April, 2004, because of a freak power failure. The problem began on Easter morning when,
for unknown reasons, there was a disruption of primary power that burned thousands of
feet of power lines. Even the hotel’s backup power system had to be shut down.
Two thousand employees were laid off with pay for one or more of these three days.
The day the hotel reopened, employees were ready to greet approximately 1,200 guests
who had reservations to check in to 800 rooms. A crowd of people waited in lines in the
lobby to check in. Guests with reservations for another 1,000 rooms were scheduled to
arrive on the second day after reopening.
On the first night of the hotel’s reopening, food and beverage service was limited. Initially
guests were invited to a buffet and full bar in the convention center. Room service, the cafe,
lounges, and bars opened later in the evening. Other restaurants opened a day or two later.
The cost of the blackout: at least $3 million per day in revenue and $1 million per day
in cash flow.
Adapted from Smith. R. 2004. Bellagio Hotel in Las Vegas opens three days after black out. Las Vegas
Review-Journal, April 15, Business, p. 1a.
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