Economic Connections

Last time I checked into a hotel or motel, it was quite simple. I parked temporarily in front, walked in and told the desk clerk my name and handed over my credit card. In short order I got my credit card back along with my room key and was politely given directions to the room along with other information, such as breakfast or pool hours. I parked my car or drove it to the most convenient doorway. It was easy and pleasant.

The last time I boarded an airplane was a different story. If someone dropped me off, parking was limited and patrolled – and don’t leave the car unattended. I had to show an ID to get my boarding pass and check luggage, which was presumably inspected after the airline took control. I then took my carry-on bag to the security area where everyone lined up, showed an ID again, showed a boarding pass, took off shoes, emptied pockets, separated electronic devices, walked through a scanner, and sometimes had to be rescanned or even searched. I then picked up my belongings, refilled my pockets, put on my belt and shoes and walked to the gate.

It used to be much simpler. Relatives could even meet you at the gate when you arrived, but not any more. Now there is security everywhere, and for good reason. We don’t want terrorists or crazy people to be able to use the airports or airplanes for murder.

This came to mind when I read about  MGM "suing" the victims and survivors of the shooting massacre in Las Vegas where a lone gunman used the MGM-owned Mandalay Bay Resort and Casino as his base of operations to slaughter 58 concertgoers and wound many others. 

Suing these innocent people sounds heartless, but the word is not being used in the familiar sense. There will be no trial, no testimony, no demand for payment. MGM filed for a declaratory judgment, where a judge decides whether they can be held liable for damages. “Here, MGM is asking a federal court to pre-emptively determine whether a particular federal law prohibits a lawsuit by the victims against MGM, instead forcing them to sue only the vendor that provided security.” As people line up to sue someone, MGM wants a judge to move them out of the line of fire.

Of course there are lawyers already jumping into the fray looking for victims to represent and for deep pockets to exploit. In addition, because people either don’t understand the intent of the lawsuit and jump to the conclusion of heartless behavior or believe that the victims deserve as much compensation as possible regardless of real fault, boycotts are being encouraged.

Now I have no interest at all in MGM, but I can predict the ramifications of such a battle. Lawyers will argue that the hotel, and by extension MGM, did not do everything possible to avoid the situation – that’s the usual argument, “everything possible.” Everyone else in the hospitality industry will be put on notice. Their insurance will increase, and they will begin to take steps to do everything possible – which, by the way, is impossible when you can’t predict what threat(s) to anticipate.

As a result, all travelers will be affected in at least a couple of ways. First, things will cost more. Economic understanding tells us that when costs like insurance and precautions go up across an entire industry, there is no competitive incentive to absorb the costs. They are easily passed on to all customers.

Second, could checking into a motel become more like taking the plane, with some combination of heavily monitored parking, baggage inspections, metal detectors, photo IDs, take off your shoes and empty your pockets – with the same for all visitors and meeting attendees? 

The second outcome is not guaranteed, but it is possible. This lawsuit by the owner of a Vegas hotel may seem unfair and distant, but our world is connected in many unexpected ways.