Casino Revenue Management

Industry Overview

The casino industry is well-known for its use of revenue management techniques.  Because there are a multitude of services offered within a casino, there are many different opportunities for revenue management practices, from the restaurants to the rooms to the spa to the casino floor itself. Additionally, many casinos rely heavily on CRM systems/loyalty programs to create the forecasts upon which their revenue management is based.  This gives casino operators a great deal of non-rooms data to draw upon which assists in their non-traditional revenue management tactics. Overall, I would place casinos in Quadrant 2, with individual components existing in Quadrant 1 (convention space, concert/sports arenas) and Quadrant 3 (restaurants, golf courses, etc.).  This blog post will focus on casinos in the United States.

http://en.wikipedia.org/wiki/Casino

Space

In most cases and for most services, casinos define their space implicitly.  In the hotel, space is divided into rooms and suites, in the restaurants, space is divided into tables, in the spas, space is divided into treatment rooms, in the event areas space is divided into seats or conference rooms, banquet halls, etc.  There are some services associated with the casino that define their space in what could be viewed as a combination of implicit and explicit.  For example, the casino floor is divided into different areas where different types of games are available, but games can be moved, and games are not sold by the space to the consumer; any guest has access to all games on the floor at any given time.  Additionally, spaces like nightclubs and pools have both explicit and implicit space (the main dance floor or pool is available to everyone, but tables or cabanas are defined and sold on an individual basis).

Casino Floor at New York, New York in Las Vegas, NV

Suite at The Bellagio in Las Vegas, NV

Tryst Night Club at Wynn Las Vegas

Tryst Nightclub Las Vegas

Of course, because casino properties are expansive, even after accounting for the gaming floor, the restaurants, the nightclubs, the event spaces and the hotel rooms, there is a large amount of additional space that can be used to generate more revenue.  One of the primary sources of revenue is alcohol sales.  There are bars located throughout the casino, independent of the clubs and restaurants, that provide a space that is separate from the main gaming floor for guests to relax and have a drink (or many drinks).  Many of these bars have additional table games or slot machines, so there is always the opportunity to get more money out of guests, even when away from the bulk of the tables/slots.  Furthermore, drinks are offered on the casino floor, most of the time at no cost to those guests who are gambling, but many casinos charge for drinks at lower-limit tables or at the slot machines.  Encouraging guests to drink, especially when drinks are available at a low price compared to the bars and restaurants nearby, not only brings in a consistent supply of revenue, but also lowers guests’ inhibitions and can lead to riskier behavior on the part of the gamblers.

Another source of revenue is the rent collected on retail space that exists in the casino.  Often, to fill the empty space between the parking structure and the main lobby, or the elevators to the guest rooms and the casino floor, or the walking distance between various restaurants and night clubs, casinos will create retail space for various vendors.  Guests don’t even have to leave the casino to find high-end products to further fill their suitcases.  Because the casino can guarantee a constant flow of potential customers, these retail spaces are highly valuable, so the property owner can charge a premium for leasing agreements.

Casino Bar, above the gaming floor, MGM Grand in Las Vegas, NV

The Forum Shops at Caesar’s, Caesar’s Palace in Las Vegas, NV

Suggestions for Space Division

Though many casinos have expertly divided their space, and have done so in a way that makes it somewhat difficult for guests to easily navigate, there are some opportunities to creatively split up the existing space within the property.  First, the casino floor itself provides a unique opportunity to capitalize on additional revenue through space utilization.  From the massive amount of data that is available, casino reservation and loyalty systems can predict which loyalty guests will be on property on any given day, and can track which games these guests play most frequently.  In order to have the appropriate table mix on the floor, to ensure that guests will have the chance to play what they want when they want, instead of waiting to get a seat at a table, casinos can use the data to determine what percentage of the total floor space should be dedicated to each specific game.

There may also be the potential for multi-use space, that can be adjusted as trends change.  For example, there is currently a huge food trend of trucks and carts that serve gourmet food on the street, quickly and easily, to passing customers.  There is so much space in a casino, along hallways or outside nightclubs, that could potentially house a “food truck”-esque space to capitalize on the demand for quick and relatively inexpensive meals.  Not only does this utilize empty space, but it may also keep guests on the gaming floor longer, if they are not taking an extended break to go eat at one of the higher-end dining establishments.  As trends change, these spaces can be altered to meet different demands, at minimal cost to the company.

Time

The casino industry sells time both implicitly and explicitly, depending on the service.  Rooms, of course, are sold explicitly, based on length of stay, and spas sell by treatment period.  However, there are many other services sold implicitly, like meals in the restaurants, admission to a night club or entertainment event, and the time spent on the casino floor.  The casino floor is in a unique position, as there is no real cost for admission (at least in US casinos), but guests are constantly “paying” for their experience through the bets placed at the tables or at the slot machines.  Though the casino is not getting a rate or fare from the guest, it is clearly making a great deal more in revenue because of the rates/amounts at which people gamble.

Reservation Page, Cosmopolitan Las Vegas

https://www.cosmopolitanlasvegas.com/book-a-room.aspx

Massage Services Menu, Red Door Spa, Harrah’s in Atlantic City, NJ

http://www.reddoorspas.com/spaservices/servicelisting.aspx?catid=25

Invite to Hyde NYE Party, The Bellagio in Las Vegas, NV

Suggestions for Time Division

Due to the high volume of demand for both rooms and club entrances, there are a couple of ways in which casinos could more creatively split up their time.  However, the practicality of these suggestions is debatable. First, because there are many guests who come to cities with a large number of casinos, like Las Vegas or Atlantic City, and perhaps only come for a brief trip (in Atlantic City especially, guests may only be on property for a few hours before returning home), there is potential to further split up the time spent in the hotel rooms.  Currently, most casinos rent rooms by the night.  However, in properties with several thousand rooms, there is certainly a possibility that, during the day, many of these rooms will be unoccupied.  The rooms division could potentially rent these rooms in short blocks, by the hour, so that guests will have a place to leave their things, take a break from the activities on the floor, etc.  If this practice does not throw too much of a wrench into housekeeping and reservations, it could be a way to generate additional revenue (especially because so many rooms are comped and earn the hotel no money whatsoever).  Second, there is also great demand for the night clubs and pools that are housed in these casinos.  Often, people wait on line for hours just to get inside for a chance to party.  On top of charging high admission prices, these clubs rake in money on alcohol sales.  One potential way to better split up the time is to have multiple “seatings”, to use a restaurant term, so as to maximize the amount of people that can potentially come in and out of the club in a given night.  I would think that one early “seating” and one late “seating”, with the exact same performance or entertainers, could be made available.  In that way people can choose which time period they would like to attend, and can attend multiple parties in the same night, instead of being miserable on a line for hours on end.

Price

Most of the rate fences currently utilized in a casino are similar to those utitlized in a hotel.  For physical rate fences, we have premium pricing for nicer rooms, rooms with better views, rooms with access to specific lounges, etc.  There are also packages, that come with discounts or freebies, like spa or restaurant gift certificates, but these are essentially built into the price of the room.  In terms of nonphysical rate fences, many casinos will charge a cancellation fee for less than 24 hours notice, will reduce rates during the week or during slow periods to drive demand, or will set rates based on reservation forecasts.  The major difference between a typical hotel’s rate fences and a casino’s rate fences is the loyalty program, which is based on how much a person gambles.  Loyalty tiers create an entirely different set of rate fences, based on revenue generated for the casino outside of the rooms division (as would be the case for loyalty guests in a typical hotel).  The more a person spends gambling, the more perks they are entitled to from the casino, like comped rooms and meals, free tickets for shows, transportation to and from the casino, etc.  One company that runs their loyalty program particularly well across their portfolio of casinos is Caesar’s Entertainment.

https://www.totalrewards.com/e-totalrewards/content/pages/overview.html

Suggestions for Rate Fences

One suggestion for an additional type of rate fence would be to change the way drinks are sold on the casino floor. In many cases, drinks are free, which loses money for the casino.  I would suggest creating physical regions on the floor, based on the limit-level of the tables or the slots, and charge for drinks based on those limit-levels.  Drinks should still remain cheaper (by quite a bit) than at the bars, in order to keep patrons on the casino floor, but drinks at the penny slots should be the most expensive, followed by the nickel slots, and up the chain until you arrive at the high limit tables where drinks remain complementary.  Depending on how this rate fence psychologically affects an individual person, it may keep them at the lower-limit games, paying more for drinks, or push them to the higher limit tables, where they eventually end up spending much more money (but less on drinks!).

19,064 thoughts on “Casino Revenue Management

  1. Your article has been a great resource for me. I learn something new and interesting things from this article. I would like to inform you that we provide services regarding udyog aadhar registration

  2. Jika anda tetap kesulitan untuk mencari daerah bermain yang tepat untuk anda bermain. anda mampu memainkan permainan slot Agen Poker Online bersama mudah dan cepat. Untuk memainkan permainan, kamu cuma wajib mengaksesnya melalui website web. Tidak hanya itu, terkandung bonus yang sanggup kamu dapatkan layaknya putaran gratis, dan apalagi bonus jackpot kalau anda beruntung! Namun, pastikan anda membaca syarat dan keputusan pembelian sebelum saat memasang taruhan. Jangan takut, seluruh informasi tentang bonus dan syarat dan ketetapan pembelian sudah ada secara lengkap disini.

  3. Selamat datang di situs web Teluk Persia! Kami mengundang Anda untuk menjelajahi budaya, sejarah, dan keindahan alam yang kaya di kawasan ini. Temukan destinasi wisata menakjubkan, masakan yang lezat, serta ragam seni dan budaya yang unik. Mari bersama-sama mengeksplorasi kekayaan Timur Tengah yang memukau.

  4. King Kong TV – Enjoy a Variety of Sports Broadcasts for Free!

    What is the best way for sports fans to enjoy valuable time watching their favorite games? It’s King Kong TV! King Kong TV is a trusted website that offers free broadcasts of various sports events. Whether it’s football, international football, or a range of other international sports broadcasts, you can conveniently enjoy them all in one place.

    스포츠중계:

    King Kong TV provides real-time broadcasts of various sports events. From football to basketball, baseball, tennis, golf, and more, you can easily watch a wide range of domestic and international sports broadcasts at a glance. With a user-friendly interface, you can select your desired game and watch it in real-time with just one click.

    축구중계:

    Football fans absolutely need King Kong TV’s football broadcast service. You won’t miss any matches from domestic and international leagues. You can watch real-time broadcasts of various leagues such as the Premier League, La Liga, Serie A, Bundesliga, and more. It offers a complete experience for football fans, including goals, tactics, and players’ performances.

    해외축구중계

    King Kong TV also provides international football broadcasts for overseas football fans. You can watch real-time broadcasts of major European leagues such as the Premier League, La Liga, Bundesliga, Serie A, Ligue 1, as well as matches from diverse regions such as Asia and South America. You won’t miss the performances of world-class star players, goals, tactics, and other valuable information. King Kong TV is the ultimate choice for international football fans.

    무료스포츠중계:

    King Kong TV is a website that provides free sports broadcasts without any subscription or membership fees. Offering free broadcasts is a significant advantage for sports fans. You can watch a variety of sports events in real-time without any financial burden, making it highly popular among users.

    해외스포츠중계:

    King Kong TV not only offers football broadcasts but also provides various international sports broadcasts. You can watch basketball, baseball, tennis, golf, UFC, and other sports broadcasts for free. From NBA and MLB to major golf tournaments and UFC matches, you can enjoy live broadcasts of global sports events without missing out.
    King Kong TV is a trusted website that offers a wide range of free sports broadcasts. From football to international sports broadcasts, you can watch various sports events in real-time. Experience the excitement and passion of sports without missing any matches with King Kong TV. Enjoy the best sports broadcasts for free anytime, anywhere.

    Additionally, we provide a safety playground on King Kong TV.

    Why should you use a guaranteed company on King Kong TV?

    1. Ensuring a Safe and Healthy Betting Experience:
    At King Kong TV, our operations team verifies and establishes partnerships with guaranteed companies through a thorough validation process that includes safety and capital verification. This ensures that our members can engage in a safe and healthy betting experience.

    2. Conversion of King Kong Money and Participation in Events:
    Through various activities such as attendance check-ins and logins, you can earn King Kong Money, which can be converted to guaranteed companies. You can also participate in all events offered by King Kong TV.

    3. 100% Compensation by King Kong TV in Case of Damage from a Guaranteed Company:

    To provide our members with peace of mind, we operate a 100% compensation system at King Kong TV in case of any damage caused by a guaranteed company.

    (Please note that compensation is not possible in case of violations of regulations or engaging in prohibited betting practices.)

    Meet the best sports broadcasts of the year on King Kong TV!

  5. 부산출장안마
    【부산출장안마】 부산홈타이 부산스웨디시 – 부산,경남 전지역 선입금 없는 후불제 출장안마 / 상담 및 문의는 웹사이트를 방문하셔서 이용해주세요. 최고의 퀄리티와 서비스로 모시겠습니다. 부산출장안마 부산출장마사지 부산모텔출장 부산호텔출장 부산출장서비스

  6. https://www.investing.com/news/cryptocurrency-news/shorter-finance-severing-massive-defi-users-from-desperate-bear-markets-as-an-entitled-narrative-2838370 |

    Shorter Finance’s auto-broker protocol may benefit users during bear markets due to its automated trading capabilities, on-chain operation, and interoperability with other DeFi protocols. Market conditions, user strategies, and individual risk tolerance determine whether Shorter Finance can assist users during a bear market. A narrative entitled Shorter Finance separates massive DeFi users from desperate bear markets. To learn more about Shorter Finance, please visit: https://www.investing.com/news/cryptocurrency-news/shorter-finance-severing-massive-defi-users-from-desperate-bear-markets-as-an-entitled-narrative-2838370

  7. industrial water chiller

    Welcome to Monport Laser’s website! We take pride in offering the best water chillers, specifically designed for industrial applications. Our collection of water chillers is meticulously crafted to meet the cooling demands of various industries, providing efficient and reliable solutions.

    With our advanced technology and expertise, we deliver high-performance industrial water chillers that excel in maintaining optimal temperatures for your equipment and processes. Whether you require precise temperature control for laser systems, CNC machines, medical equipment, or other industrial applications, our water chillers are engineered to deliver outstanding performance and ensure the longevity of your machinery.

    Our water chillers stand out from the competition due to their exceptional features and benefits. They are built with cutting-edge cooling technology, allowing for rapid heat dissipation and stable operation, even under heavy workloads. The reliability of our water chillers ensures uninterrupted production and minimizes the risk of equipment downtime.

    At Monport Laser, we understand the importance of energy efficiency in industrial operations. That’s why our water chillers are designed to optimize energy consumption, reducing your carbon footprint while keeping your cooling costs under control. By choosing our water chillers, you not only benefit from superior performance but also contribute to a more sustainable future.

    Our commitment to customer satisfaction is unwavering. We offer personalized solutions tailored to your specific requirements, ensuring that you find the perfect water chiller for your industrial needs. Our knowledgeable team is always ready to assist you, providing expert advice and guidance throughout the selection process.

    When it comes to industrial water chillers, Monport Laser is your trusted partner. Explore our collection of water chillers today and experience the unmatched quality, efficiency, and reliability that sets us apart from the rest. Invest in the best water chiller solution for your industrial applications and elevate your productivity to new heights.

  8. King Kong TV – Enjoy a Variety of Sports Broadcasts for Free!

    What is the best way for sports fans to enjoy valuable time watching their favorite games? It’s King Kong TV! King Kong TV is a trusted website that offers free broadcasts of various sports events. Whether it’s football, international football, or a range of other international sports broadcasts, you can conveniently enjoy them all in one place.

    스포츠중계:

    King Kong TV provides real-time broadcasts of various sports events. From football to basketball, baseball, tennis, golf, and more, you can easily watch a wide range of domestic and international sports broadcasts at a glance. With a user-friendly interface, you can select your desired game and watch it in real-time with just one click.

    축구중계:

    Football fans absolutely need King Kong TV’s football broadcast service. You won’t miss any matches from domestic and international leagues. You can watch real-time broadcasts of various leagues such as the Premier League, La Liga, Serie A, Bundesliga, and more. It offers a complete experience for football fans, including goals, tactics, and players’ performances.

    해외축구중계:

    King Kong TV also provides international football broadcasts for overseas football fans. You can watch real-time broadcasts of major European leagues such as the Premier League, La Liga, Bundesliga, Serie A, Ligue 1, as well as matches from diverse regions such as Asia and South America. You won’t miss the performances of world-class star players, goals, tactics, and other valuable information. King Kong TV is the ultimate choice for international football fans.

    무료스포츠중계

    King Kong TV is a website that provides free sports broadcasts without any subscription or membership fees. Offering free broadcasts is a significant advantage for sports fans. You can watch a variety of sports events in real-time without any financial burden, making it highly popular among users.

    해외스포츠중계:

    King Kong TV not only offers football broadcasts but also provides various international sports broadcasts. You can watch basketball, baseball, tennis, golf, UFC, and other sports broadcasts for free. From NBA and MLB to major golf tournaments and UFC matches, you can enjoy live broadcasts of global sports events without missing out.
    King Kong TV is a trusted website that offers a wide range of free sports broadcasts. From football to international sports broadcasts, you can watch various sports events in real-time. Experience the excitement and passion of sports without missing any matches with King Kong TV. Enjoy the best sports broadcasts for free anytime, anywhere.

    Additionally, we provide a safety playground on King Kong TV.

    Why should you use a guaranteed company on King Kong TV?

    1. Ensuring a Safe and Healthy Betting Experience:
    At King Kong TV, our operations team verifies and establishes partnerships with guaranteed companies through a thorough validation process that includes safety and capital verification. This ensures that our members can engage in a safe and healthy betting experience.

    2. Conversion of King Kong Money and Participation in Events:
    Through various activities such as attendance check-ins and logins, you can earn King Kong Money, which can be converted to guaranteed companies. You can also participate in all events offered by King Kong TV.

    3. 100% Compensation by King Kong TV in Case of Damage from a Guaranteed Company:

    To provide our members with peace of mind, we operate a 100% compensation system at King Kong TV in case of any damage caused by a guaranteed company.

    (Please note that compensation is not possible in case of violations of regulations or engaging in prohibited betting practices.)

    Meet the best sports broadcasts of the year on King Kong TV!

  9. King Kong TV – Enjoy a Variety of Sports Broadcasts for Free!

    What is the best way for sports fans to enjoy valuable time watching their favorite games? It’s King Kong TV! King Kong TV is a trusted website that offers free broadcasts of various sports events. Whether it’s football, international football, or a range of other international sports broadcasts, you can conveniently enjoy them all in one place.

    스포츠중계:

    King Kong TV provides real-time broadcasts of various sports events. From football to basketball, baseball, tennis, golf, and more, you can easily watch a wide range of domestic and international sports broadcasts at a glance. With a user-friendly interface, you can select your desired game and watch it in real-time with just one click.

    축구중계:

    Football fans absolutely need King Kong TV’s football broadcast service. You won’t miss any matches from domestic and international leagues. You can watch real-time broadcasts of various leagues such as the Premier League, La Liga, Serie A, Bundesliga, and more. It offers a complete experience for football fans, including goals, tactics, and players’ performances.

    해외축구중계:

    King Kong TV also provides international football broadcasts for overseas football fans. You can watch real-time broadcasts of major European leagues such as the Premier League, La Liga, Bundesliga, Serie A, Ligue 1, as well as matches from diverse regions such as Asia and South America. You won’t miss the performances of world-class star players, goals, tactics, and other valuable information. King Kong TV is the ultimate choice for international football fans.

    무료스포츠중계

    King Kong TV is a website that provides free sports broadcasts without any subscription or membership fees. Offering free broadcasts is a significant advantage for sports fans. You can watch a variety of sports events in real-time without any financial burden, making it highly popular among users.

    해외스포츠중계:

    King Kong TV not only offers football broadcasts but also provides various international sports broadcasts. You can watch basketball, baseball, tennis, golf, UFC, and other sports broadcasts for free. From NBA and MLB to major golf tournaments and UFC matches, you can enjoy live broadcasts of global sports events without missing out.
    King Kong TV is a trusted website that offers a wide range of free sports broadcasts. From football to international sports broadcasts, you can watch various sports events in real-time. Experience the excitement and passion of sports without missing any matches with King Kong TV. Enjoy the best sports broadcasts for free anytime, anywhere.

    Additionally, we provide a safety playground on King Kong TV.

    Why should you use a guaranteed company on King Kong TV?

    1. Ensuring a Safe and Healthy Betting Experience:
    At King Kong TV, our operations team verifies and establishes partnerships with guaranteed companies through a thorough validation process that includes safety and capital verification. This ensures that our members can engage in a safe and healthy betting experience.

    2. Conversion of King Kong Money and Participation in Events:
    Through various activities such as attendance check-ins and logins, you can earn King Kong Money, which can be converted to guaranteed companies. You can also participate in all events offered by King Kong TV.

    3. 100% Compensation by King Kong TV in Case of Damage from a Guaranteed Company:

    To provide our members with peace of mind, we operate a 100% compensation system at King Kong TV in case of any damage caused by a guaranteed company.

    (Please note that compensation is not possible in case of violations of regulations or engaging in prohibited betting practices.)

    Meet the best sports broadcasts of the year on King Kong TV!

  10. زوم تراول شامل اطلاعات جامعی در خصوص جاذبه های گردشگری ایران و جهان، راهنمای حرفه ای ایرانگردی و جهانگردی و اخبار و مقالات کاربردی حوزه گردشگری است راهنمای سفر

  11. The Grown by Freedom
    Alona Shevtsova presents “The Grown by Freedom” an upcoming documentary that delves deep into the indomitable spirit of Ukrainians who fearlessly faced the Russian aggressor. This captivating film will soon be available on various global streaming platforms, following a preview at the prestigious Berlin Economic Forum.

  12. Nikmati sensasi baru bermain di situs slot deposit pulsa terbaik di Indonesia, yaitu SUPERMONEY88. Kami menawarkan beragam jenis mesin slot online terbaik. Bagi Anda yang tidak ingin melewatkan kesempatan untuk bermain dan meraih kemenangan di slot online, bergabunglah di sini karena ini merupakan pilihan yang tepat. Kami menyediakan pendaftaran game slot dengan deposit termurah untuk para member SUPERMONEY88.

    SUPERMONEY88 hadir sebagai situs slot online dengan konsep “One Stop Betting”, yang berarti dengan hanya menggunakan satu akun yang terdaftar, Anda dapat menikmati berbagai permainan yang tersedia di situs kami, termasuk sportsbook, casino, games, slots, poker, dominoqq, dan masih banyak lagi.

  13. SAPPORO88 merupakan situs slot deposit pulsa terbaik di Indonesia yang telah dikenal sejak tahun 2020. Mereka menawarkan berbagai macam permainan mesin slot online yang lengkap. Selain itu, SAPPORO88 juga menyediakan permainan bola Sportsbook, live casino online, dan poker online, serta banyak jenis permainan lainnya yang patut dicoba di situs slot online terbaik ini. Hanya dengan mendaftar 1 ID, Anda dapat memainkan seluruh permainan yang tersedia di SAPPORO88.

    Selain menjadi situs slot online terbaik tahun 2021, SAPPORO88 juga merupakan agen sportsbook online dengan deposit hanya 50 ribu. Mereka juga dikenal sebagai agen slot online terpercaya dan menyediakan permainan poker online, serta berbagai jenis permainan lainnya yang layak Anda coba di situs game slot terpercaya ini.

Leave a Reply

Your email address will not be published. Required fields are marked *