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CUSTOMER SERVICE: Grace under disaster

Hotel guests say MGM Mirage handled Monte Carlo fire with class

What a way to get a hotel-room upgrade.

When Steven and Randie Siegel arrived at the Monte Carlo Jan. 24, they checked into one of the hotel's standard rooms on the 25th floor. But a fire the next day forced the Maryland couple out of the Monte Carlo -- and into some seriously posh digs at MGM Mirage's Signature high-rise development at the MGM Grand. Their new accommodations featured a flat-screen television, a Jacuzzi tub and a kitchenette, among other amenities. And the Siegels didn't have to pay a dime for the suite, as MGM Mirage picked up the tab for the rest of the couple's five-day stay.

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  • Disasters can cost a company legions of customers and imperil its survival. Handled poorly, a calamity can send clients fleeing to competitors. But catastrophes also provide businesses with opportunities to show off their best customer-service chops. Companies who get it right can secure loyal customers for life, experts say. The secret: being equitable and honest, and communicating with employees in advance about processes during a disaster.

    "There's one overriding command, and that's to treat the customer like you'd like to be treated," said Don Peppers, a founding partner of customer-service consulting firm Peppers & Rogers Group in Connecticut. "That might mean giving up a short-term opportunity to make a profit in exchange for being open and fair with customers."

    Earnings were the last thing MGM Mirage executives worried about in the Monte Carlo fire's aftermath, said Alan Feldman, senior vice president of public affairs for the company. The company had to transfer roughly 5,000 guests to other local hotels, and keep them happy in the process.

    To understand customers' needs, MGM Mirage's managers asked themselves what they'd need in similar circumstances, Feldman said. New rooms, medications and clothes topped their list. The company gave fresh hotel rooms gratis to Monte Carlo guests, and employees worked past midnight picking up prescriptions for customers who'd left their medications in their luggage inside the hotel.

    For the few Monte Carlo guests who couldn't retrieve their belongings before late Saturday, MGM Mirage told them to buy necessary clothes and submit an expense claim to the hotel. The few receipts that have trickled in have all been reasonable, Feldman said, and some of them have come attached to "the nicest" letters praising the company's professionalism during the fire.

    The assistance hasn't been cheap, but Feldman and other MGM Mirage executives consider it an investment in protecting the company's customer base.

    "If you make the mistake of trying to control the financial hit you are going to take, you might as well try to hold a wave on the sand," he said. "You're much better off thinking about the long term, and thinking about how you'd want to be treated in those circumstances."

    For the Siegels, the Monte Carlo's customer care following the fire didn't end with the upgraded room.

    The company bought and delivered a 30-day supply of the couple's medications -- an expense of about $700 for out-of-plan purchases, Randie Siegel said. And a porter accompanied the couple up to their room on the 25th floor to help them collect and carry their bags late Friday night.

    "I personally thought they did an excellent job, and that everyone was as kind and as helpful as they could be," Siegel said.

    Christina Redden, an Indianapolis resident staying at the Monte Carlo with friends and family for her 23rd birthday, also appreciated her alternate hotel. MGM Mirage transferred Redden's party to Mandalay Bay, where they "had a really good experience" and were "treated very well," Redden said.

    Peppers, who doesn't have a business relationship with the Monte Carlo or parent company MGM Mirage, called the resort operator's offer to comp guests' stays in other, sometimes-upgraded rooms "terrific, and above and beyond."

    "There's a lot of academic research into how customer trust is lost and recovered, or not recovered," Peppers said. "One of the main findings is that good behavior is the only sure and true way to recover trust. It doesn't matter what you say and don't say, or how many things you promise."

    The Monte Carlo fire is not MGM Mirage's first brush with disaster.

    A four-day power outage at Bellagio in 2004 sent managers scrambling to relocate at least 1,500 guests. The blackout cost the company millions of dollars in revenue, as the gaming floor shut down and attractions such as Cirque du Soleil's "O" closed. But it also helped the resort operator know how to work with customers after the Monte Carlo burned.

    From Bellagio's experience came disaster-preparedness refinements such as the assembling of a relocation team, a group of employees designated to spearhead guest moves in an emergency. The power outage also taught MGM Mirage executives the importance of giving patrons information as clearly and quickly as possible. And Monte Carlo managers will borrow some of Bellagio's reopening strategies, which recreated some of the excitement of the hotel's 1998 launch.

    Though they gave solid reviews to MGM Mirage's mid-disaster service efforts, the Siegels and Redden have a few loose ends they'd like tied up.

    Steven Siegel developed painful leg cramps from his 25-floor trek down Monte Carlo's stairs. He bought a massage at the MGM Grand to ease the pain; Randie Siegel said she plans to write a note to the hotel to ask if the company might help cover the service. She also hadn't been able to determine as of Tuesday whether some bills she'd dropped in the Monte Carlo mailbox on the morning of the fire were collected.

    Redden said she and her parents are uncertain how much they'll have to pay for their hotel stay. The post-blaze room at Mandalay Bay was free, but Redden said the family might have to pay for their first night's stay in the Monte Carlo, the evening before the fire. It's an expense she's not sure is fair, because the fire "ruined" their trip.

    Still, MGM Mirage has seemingly retained both customers' business.

    The Siegels would stay again at the Monte Carlo, because they like its layout and its easy access, Randie Siegel said.

    Redden said she's not likely to stay at the Monte Carlo again, because she would rather get a feel for the variety of hotels on the Strip, but she praised her time at Mandalay Bay.

    MGM Mirage could deploy promotions to ensure that more Monte Carlo guests are willing to take another chance on the property and its sister resorts, Peppers said. With computerized customer records, it should be relatively easy for the company to send out electronic coupons for discounts on future visits, for example.

    Feldman said MGM Mirage officials are drawing up special offers now, with details available in the coming weeks.

    Such deals are essential to making inconvenienced patrons feel that they've been made whole, Peppers said.

    "Customers don't have a right to expect to profit from a disaster," he said, "but the company doesn't have a right to expect customers to share in the costs of a disaster. It needs to be the company's cost."

    Contact reporter Jennifer Robison at jrobison@reviewjournal.com or (702) 380-4512.



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    SolarFlora wrote on February 04, 2008 07:31 PM: There's one thing to be sure about MGM-Mirage, and the way it handled the situation at the Monte Carlo: they not only handled the emergency with class, but they did something that most hotels should have...an emergency plan that CAN work in the event of an emergency. This is a big plus for Las Vegas,Clark County and, of course, MGM-Mirage.I think they learned a good lesson after the tragdies at the 1980 MGM Fire (where now is Ballys is at) and the Hilton Fire a few months later in 1981.

    Also, the CCFD, LV Metro and other Emergency Services should also be commended; they too were prepared and squashed-out the fire within a hour.

    Although minor injuries occured, no one was seriously hurt. And luckly, nobody had to set up a makeshift morgue. that would have been devestating.

    I feel this was a major step keeping people safe and secure when people come to a place like this. I also feel that Fred Frazzetta is also making his point: Harrah's (TPC,Apollo, Hamlet or whoever/whetever) should take in consideration that while profits are good for the company, it should never be an alternative for public safety. With eight casino resort properties in which it owns, three of them have had code violations, and one of them, the Rio, was brought to the attention by Mr. Frazzetta, to Management. Without taking in the regard of these concerns, Harrah's wanted to cut corners, "blindsigihting"its customers and the CC Bulilding Dept.

    If Mr. Frazzetta had not gone public (or in this case, to the RJ,) we would have seen an incident wery reminicent to the MGM and Hilton tragedies.

    Harrah's should not take this situation lightly; they are part of this town's image. If the company doesn't cooperate, they will slowly erode, decay, fall and then FAIL. Period.


    Gerry wrote on February 04, 2008 05:46 PM: Some people always find a way of exaggerating or taking advantage of a situation......the Siegels expect Monte Carlo to pay for a message that they felt was needed after going down 25 flights of stairs.....give me a break. From all accounts that I've read or heard of it seems that Monte Carlo treated their customers with nothing but class.


    Geoff wrote on February 04, 2008 11:56 AM: Michelle probably went back to her 2500+ sq. foot home and driving a nice luxury car that her parents are probably paying for. Some people don't know what it's like to be grateful for what they have..


    Fred Frazzetta wrote on February 04, 2008 11:24 AM: My hat is off to the MGM Mirage Corporation and the way that they handled this most unfortunate situation. I can only imagine how much money the Monte Carlo Fire has cost them, and yet they have fully cooperated it seems with the Clark County Building Department & CC Fire Department. I will be interested to see if the Company responsible for the fire due to their apparent disregard for safety procedures gets sued by the Hotel...as they should!

    Gary Loveman and Harrah's need to suck it up and apologize to all of their valued guests & employees that they put in harms way for so many years because of the ILLEGAL Remodeling they did, and more importantly the Public Fire Safety Hazards left behind in all of the rooms that they touched. Harrah's should be ashamed of themselves, and just maybe they should do something nice for everyperson that stayed in the affected rooms over the years. Further, Gary Loveman you need to do something for the employees that your management team exposed to ASBESTOS and who knows what else in the course of their illegal projects. Mr. Loveman, all you need to do is ask Mike Nasby, Tom Adams, Mike Whitehead, Leon Vermillion, George Kirkwood...or any of the hundreds of workers that were needlessly exposed due to the Companies Negligence - yes negligence as State & Federal Laws were broken! By the way Gary, how many rooms are still closed in the North Mardi Gras Tower at Harrah's on the strip? Do you still have Fire Watches in the hotel? I think that Harrah's should take some lessons from the MGM Mirage and how they handled a very difficult situation. Gary, why don't you let everyone know just how unethical Harrah's is...


    jl wrote on February 04, 2008 11:04 AM: These people seem to just want more and more. Michelle, learn some humility.


    Tom, Burbank wrote on February 04, 2008 10:09 AM: Poor MIchelle Redden says, "It's an expense she's not sure is fair, because the fire "ruined" their trip." Huh? She and her family were transferred to Mandalay Bay (a true upgrade from Monte Carlo) and had free rooms there for the rest of her stay and is quoted earlier in the article as saying they "had a really good experience" and were "treated very well." She saved a lot of money, wasn't injured, didn't lose any personal property and had a wildly unforgettable 23rd birthday with her family and she still finds something to complain about. Sheesh.