by

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!).

13,665 thoughts on “Casino Revenue Management”

  2. If you come to play baccarat online today You can play BACCARAT168 web baccarat wallet 1 baht on your mobile phone or computer. It can be said that with the availability of online games that are very convenient and worthwhile for people to play. Web baccarat, minimum 1 baht, other games besides favorite games Your mobile controller connects to millions of players around the world. Play BACCARAT168​ Everything Baccarat Wallet is available. Play exciting games that allow you to collect points on your mobile screen. Don’t waste your time traveling with comfort and safety BACCARAT168 Baccarat 1 baht

  13. Saya suka bermain mesin slot online, pasti kalian juga suka!
    Untuk memenangkan lebih mudah, saya suka mencari slot gacor di situs terpercaya.
    Jika anda ingin mengetahui slot gacor hari ini, anda bisa menemukannya di google.

  21. BALAKSIX menawarkan cara yang mudah dan aman untuk bermain judi online. Tidak peduli bagaimana Anda ingin bertaruh, atau berapa tingkat kemampuan Anda, Balaksix memiliki semua yang Anda butuhkan untuk berhasil. Dengan respon cepat inovasi sistem dan bonus yang menarik, layanan pelanggan 24 jam, dan metode penarikan yang aman dan terlindungi, Balaksix merupakan pilihan terbaik bagi para pemain untuk bermain judi. Dengan tips yang kami bagikan dalam artikel ini, kami harap Anda akan tetap berhati-hati agar selamnya menikmati permainan judi dengan aman dan terjamin di situs Balaksix. Jadilah pemain yang cerdas, bertaruhlah dengan cerdas – dan raihlah kesuksesanmu bersama Balaksix!

  23. KSL Dogs for Sale is a website or market place where people may find a variety of dogs that are for sale. KSL, which stands for KSL Classifieds, is a well-known online classified service that provides a variety of products and services, including pets. https://allpettech.com/ksl-dogs-for-sale/

  24. อยากได้รายได้พิเศษ ต้องบอกเลยว่าที่ คาสิโนออนไลน์ เขาแจกเงินรางวัลหนัก โบนัสจัดเต็ม เพียงลงทุนแค่ 10 บาท แต่ได้รับผลตอบแทน เป็นกำไรหลักแสน รู้แล้วอย่าช้า รีบสมัครกันเบย

  27. The Emergence of Toto Sites: Exploring the Leading Players in the Online Betting Industry

    Introduction
    In the ever-evolving realm of online betting, Toto sites have gained significant traction, captivating the interest of passionate bettors across the globe. With a growing number of individuals seeking reliable platforms for sports betting, the importance of trustworthy and secure 토토사이트 cannot be overstated. This article dives into the intriguing world of Toto sites and highlights the top major sites that are revolutionizing the online betting experience.

    Understanding Toto Sites
    Toto sites, also referred to as verification sites, serve as an essential resource for online bettors. Their primary objective is to ensure the safety and dependability of online betting platforms. Through rigorous verification processes, Toto sites examine various factors such as licensing, security measures, user reviews, and financial stability. By conducting meticulous assessments, Toto sites aim to identify major sites that offer users a fair and secure betting environment.

    The Significance of Major Sites
    Major sites represent the crème de la crème in the online betting industry. These platforms boast a robust infrastructure, an extensive range of sports and betting options, and impeccable security measures. Major sites are renowned for their reliability, providing users with a seamless betting experience devoid of fraudulent activities. They often establish partnerships with reputable sportsbooks, granting users access to the most accurate and up-to-date odds and information.

    Top Major Sites for Online Betting
    Site A: Site A has gained favor among bettors due to its comprehensive betting experience, extensive sports coverage, and user-friendly interface. With a wide array of betting options, competitive odds, and enticing promotions, it has become a top choice for many.

    Site B: Site B is celebrated for its unwavering focus on customer satisfaction, offering excellent customer support and a seamless user experience. It boasts a diverse selection of sports, live betting options, and convenient payment methods, making it an appealing choice for both novices and experienced bettors.

    Site C: Site C has garnered popularity for its cutting-edge technology and innovative features, particularly its immersive live betting platform. It offers a plethora of live streaming options, allowing users to watch their favorite sports events while placing real-time bets.

    Site D: Site D is recognized for its high level of security and stringent verification process, prioritizing user safety. It provides a vast selection of sports and a user-friendly interface, ensuring a hassle-free betting experience.

    Selecting the Right Toto and Major Sites
    When choosing a Toto site and major site for online betting, several factors should be taken into consideration:

    Licensing and Regulation: Ensure that both the Toto site and major site possess the necessary licenses from reputable regulatory bodies, guaranteeing adherence to strict standards.

    Security Measures: Opt for platforms with robust security protocols, including encryption technology and secure payment gateways, to safeguard personal and financial information.

    Reputation and Reviews: Conduct research on user reviews and testimonials to gauge the reputation and reliability of the Toto site and major site.

    Range of Sports and Betting Options: Select platforms that offer a wide variety of sports and diverse betting options to cater to individual preferences.

    Conclusion
    As the popularity of online betting continues to surge, the role of Toto sites and major sites becomes increasingly significant. These platforms provide bettors with a secure, dependable, and enjoyable betting experience. By leveraging the verification processes offered by Toto sites and exploring the top major sites, users can make informed choices and engage in online betting with confidence. Remember to prioritize factors such as licensing, security measures, reputation, and the variety of sports and betting options when selecting the ideal Toto and major sites. With the right choices, you can elevate your online betting journey to new heights of excitement and success.

  28. 토토사이트

    토토사이트 꽁머니 먹튀검증 사이트 안전놀이터 스포츠토토분석 커뮤니티 스포츠중계 해외축구중계 1위 오엑스컴퍼니

  29. 토토사이트

    토토사이트, 스포츠토토, 먹튀검증업체 2023년 가장 핫한 최고의 메이저사이트만을 소개해 드리며, 토토애플만의 특별한 먹튀검증 절차를 통하여 완벽하고 안전한 토토사이트만을 선별하였습니다 믿고 이용할 수 있는 국내 1등 토토사이트입니다

  30. 토토사이트

    토토사이트, 스포츠토토, 먹튀검증업체 2023년 가장 핫한 최고의 메이저사이트만을 소개해 드리며, 토토애플만의 특별한 먹튀검증 절차를 통하여 완벽하고 안전한 토토사이트만을 선별하였습니다 믿고 이용할 수 있는 국내 1등 토토사이트입니다

  32. 안전놀이터메이저놀이터 메이저사이트 토토사이트 사설토토 먹튀검증이 확실한 토토사이트들만을 선점하여 토지노뱃에 입점을 허가하였습니다 문제나 사고 발생 시 100 보장해 드리며, 안전놀이터에서 재밌게 배팅을 즐기세요

    토토사이트

  35. สล็อตเว็บตรง ยูสเก่ายูสใหม่เล่นยังไงก็แตก
    LINE ID: @nv88slots

    – แนะนำ 10 เกมส์แตกดี
    – สล็อตออนไลน์เล่นยังไงให้ได้เงิน
    – หารายได้เสริมง่ายๆ ใน 2 ขั้นตอน
    – แจกอัตราการชนะของสล็อต RTP
    – รีวิวจริงจากผู้เล่นจริง Nova88

    http://www.nova88thailand.com

  36. เว็บแทงบอล 10 บาทก็เล่นได้ I เจ้าของห้องกีฬา Saba Sport เว็บตรงไม่ผ่านเอเย่นต์
    LINE ID: @nv88slots

    – สอนแทงบอล อ่านจบเล่นเป็นทันที
    – วิธีการแทงบอลออนไลน์
    – โปรโมชั่นสุดพิเศษ
    – ฝาก 200 รับ 600 ทันที แถมสปินฟรีอีก 50 ครั้ง

    http://www.maruay88th.com

  37. Pahami mengapa Balaksix menawarkan transaksi yang aman sehingga Anda dapat merasa percaya diri saat melakukan deposit
    Balaksix adalah tempat yang dipercaya untuk melakukan transaksi keuangan. Mereka selalu memastikan bahwa transaksi dilakukan dengan aman dan tepat waktu. Mengapa? Karena Balaksix memahami bahwa kepercayaan adalah kunci untuk menjalin hubungan yang baik dengan kliennya. Oleh karena itu, Balaksix senantiasa menawarkan transaksi yang aman, terutama untuk melakukan deposit. Jadi, Anda dapat merasa percaya diri dan nyaman saat melakukan transaksi dengan mereka. Yuk, jangan ragu lagi untuk bergabung dengan Balaksix, tempat di mana keamanan dan kepercayaan diutamakan!

  38. 토토사이트

    Unveiling the Secrets of Toto Sites for Safe Online Betting

    Introduction:
    The online betting industry has witnessed tremendous growth, attracting numerous players in search of excitement and potential rewards. However, the selection of a reliable platform poses risks. That’s where Toto sites come into play. Toto sites act as trustworthy guides for online bettors, offering information and recommendations for major sites that prioritize safety and reliability. This article explores the world of Toto sites, highlighting how they assist players in making informed decisions about their online betting experiences. Additionally, we shed light on major sites, emphasizing their characteristics and the key factors to consider when choosing a platform. By the end, you’ll have a comprehensive understanding of how Toto sites and major sites collaborate to ensure a secure and enjoyable online betting journey.

    What are Toto Sites?
    Toto sites, also known as verification sites, serve as intermediaries between online bettors and major betting platforms. Their primary objective is to assess the safety and reliability of these platforms, providing players with accurate information for making informed decisions. Toto sites meticulously verify various aspects, including licensing, security measures, financial stability, customer support, and fairness of gameplay. Through thorough evaluations, Toto sites aim to filter out fraudulent or unsafe platforms, ensuring that players are directed to reputable major sites for their betting needs.

    Benefits of Toto Sites:

    Enhanced Safety: Toto sites prioritize player safety by rigorously verifying major sites. They recommend platforms with robust security measures and stringent data protection, significantly reducing the risk of falling victim to scams or data breaches.

    Reliable Information: Toto sites provide accurate and up-to-date information about major sites, including available games, bonuses, and promotional offers. With comprehensive details at hand, players can make well-informed decisions based on their preferences.

    Community Feedback: Toto sites often incorporate community feedback and reviews into their evaluations. This collective wisdom from experienced bettors adds an extra layer of transparency and trust to the recommended major sites.

    Characteristics of Major Sites:

    Licensing and Regulation: Major sites prioritize legitimacy by obtaining proper licenses from reputable gambling authorities. These licenses ensure that the platforms operate within legal boundaries and adhere to strict regulations, safeguarding the interests of players.

    Secure Transactions: Leading major sites employ advanced encryption technology to protect financial transactions. This ensures that players’ deposits and withdrawals are conducted securely, minimizing the risk of unauthorized access.

    Game Variety and Quality: Major sites offer a wide range of games, collaborating with renowned software providers to ensure a seamless and immersive gaming experience. This diverse selection includes popular casino games, sports betting options, and more.

    Bonuses and Promotions: To attract and retain players, major sites offer enticing bonuses, welcome packages, and regular promotions. These rewards provide additional value and enhance the overall betting experience for users.

    Choosing the Right Major Site:

    Reputation and Trustworthiness: Conduct thorough research on major sites to assess their reputation among players and industry experts. Online forums, reviews, and ratings can provide valuable insights into the platform’s track record and trustworthiness.

    Licensing and Regulation: Verify that the major site holds a valid gambling license from a reputable authority. This information is typically displayed on the platform’s website, and you can cross-check the license’s authenticity through the respective regulatory body.

    Security Measures: Prioritize platforms with SSL encryption technology and robust security protocols to safeguard your personal and financial information. Look for indications of secure connections, such as “https” and a padlock symbol, which signify a secure website.

    Payment Options: Consider major sites that offer a wide range of payment methods, including credit/debit cards, e-wallets, and bank transfers. Flexible payment options ensure convenience and accessibility for users.

    Customer Support: Opt for major sites that provide responsive and reliable customer support. Look for platforms that offer multiple channels of communication, such as live chat, email, or telephone, to address any queries or concerns promptly.

    User-Friendly Interface: A well-designed and intuitive interface enhances the overall betting experience. Choose major sites that offer a user-friendly platform, allowing you to navigate smoothly and find your preferred games effortlessly.

    Conclusion:
    Toto sites play a crucial role in the world of online betting, serving as guides that prioritize safety and reliability. By evaluating major sites and providing accurate information, Toto sites ensure that players can make informed decisions. When selecting a major site, consider factors such as reputation, licensing, security measures, payment options, customer support, and user-friendly interface. By following these guidelines, you can embark on a secure and enjoyable online betting journey.

  44. The Emergence of Toto Sites: Exploring Top Major Platforms in the Online Betting World

    Introduction:
    In the ever-evolving realm of online betting, Toto sites have emerged as reliable and secure platforms for users seeking enjoyable gambling experiences. As the popularity of online betting continues to soar, it becomes increasingly crucial for enthusiasts to identify trustworthy major sites 토토사이트 offer a diverse range of games, competitive odds, and exceptional user experiences. This article aims to delve into the concept of Toto sites, highlight their significance, and provide an overview of some of the leading major sites making waves in the industry.

    Understanding Toto Sites:
    Toto sites serve as verification platforms, offering users detailed information about various online betting sites. Their primary objective is to ensure the safety and reliability of these platforms, providing users with peace of mind before engaging in any betting activities. Toto sites conduct thorough verification processes, which include checking licenses, security measures, customer support, and overall platform reputation. By offering this valuable information, Toto sites empower users to make informed decisions and steer clear of potential scams or fraudulent activities.

    The Significance of Major Sites:
    Major sites are distinguished online betting platforms that have established a strong reputation within the industry. These platforms provide users with a wide variety of betting options, competitive odds, attractive bonuses, and excellent customer service. Opting for a major site ensures a higher level of reliability, safety, and an overall enhanced betting experience. Major sites typically boast large user bases, fostering a competitive environment and allowing users to explore a diverse range of betting options.

    Top Major Sites in the Online Betting World:

    ABC Betting: ABC Betting is a renowned major site that offers an extensive selection of betting options, including sports betting, casino games, and virtual sports. With its user-friendly interface, secure payment options, and exceptional customer support, ABC Betting has garnered a loyal following of users.

    XYZ Sports: XYZ Sports caters specifically to sports betting enthusiasts. It covers a wide range of sports events, providing competitive odds and a seamless betting experience. With its intuitive interface and mobile compatibility, XYZ Sports allows users to bet on their favorite sports from anywhere, at any time.

    123 Casino: For those seeking the thrill of casino games, 123 Casino stands out as a major site worth exploring. It boasts an extensive collection of popular casino games, including slots, blackjack, poker, and roulette. With its user-friendly interface, high-quality graphics, and enticing promotions, 123 Casino offers a captivating online casino experience.

    Key Considerations When Choosing a Major Site:

    Safety and Security: Prioritize major sites that have robust security measures in place, such as SSL encryption and valid gambling licenses. These precautions ensure the safety of your personal and financial information.

    Game Selection: Look for major sites that offer a diverse range of betting options, encompassing sports betting, casino games, and virtual sports. A broad selection of games ensures that you can find something that aligns with your interests.

    Bonuses and Promotions: Major sites often provide attractive bonuses and promotions to entice users. Seek out platforms that offer generous welcome bonuses, free bets, and ongoing promotions to enhance your betting experience.

    User Experience: A major site should feature a user-friendly interface, enabling seamless navigation throughout the platform. Additionally, responsive customer support is crucial for addressing any queries or concerns that may arise during your betting journey.

    Conclusion:
    Toto sites and major sites play a pivotal role in ensuring a secure and enjoyable online betting experience. By verifying the reliability and safety of online betting platforms, Toto sites empower users to make informed decisions when selecting major sites to engage with. Whether your preference lies in sports betting, casino games, or virtual sports, the top major sites highlighted in this article serve as excellent starting points for your online betting journey. Remember to consider factors such as safety, game selection, bonuses, and user experience when choosing a major site. Approach the world of online betting with confidence, embracing the excitement it offers while staying protected on trusted major sites.

Leave a Reply

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