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!).

19,025 thoughts on “Casino Revenue Management”

  4. Discover the Top Baduki Sites: Your Ultimate Guide to Safe and Exciting Gameplay

    Introduction:

    In the realm of online gaming, finding a trustworthy platform that offers both entertainment and security is crucial. Star Baduki stands as a beacon of reliability, committed to curating the finest Baduki sites for users seeking an exhilarating gaming experience without compromising on safety. With a dedication to ensuring fun-filled 바둑이사이트 gameplay and guaranteed repayment, Star Baduki emerges as a premier guide for enthusiasts navigating the diverse landscape of Baduki gaming.

    Unveiling the Best Baduki Sites:

    Star Baduki prides itself on meticulous selection processes, meticulously handpicking the crème de la crème of Baduki sites. Each recommendation undergoes rigorous scrutiny, ensuring that users are directed only towards platforms that prioritize integrity, fair play, and user satisfaction. The emphasis is not solely on the game’s thrill but also on the guarantee of a secure and scam-free environment.

    Safety Assurances and Peace of Mind:

    The cornerstone of Star Baduki’s recommendations rests on the assurance of a worry-free gaming experience. The platform’s commitment to user safety extends beyond mere promises, offering a shield against potential scams. Users can immerse themselves in the game, reveling in the excitement, free from apprehensions about being deceived or misled.

    Guaranteed Repayment and Enjoyable Gameplay:

    At Star Baduki, the promise of repayment is a non-negotiable aspect. Users can engage in gameplay without the looming fear of financial losses. This guarantee amplifies the joy of the game, allowing players to focus solely on strategy and entertainment rather than concerns about monetary risks.

    The Star Baduki Experience:

    Beyond being a mere recommendation hub, Star Baduki fosters a community of like-minded enthusiasts. Through comprehensive reviews, insightful guides, and a commitment to transparent information, it serves as a trusted companion on every player’s Baduki journey. The platform’s dedication to excellence and user-centric approach elevates the gaming experience, making it not just about playing but about embracing a vibrant community.

    Conclusion:

    In a landscape where trust and entertainment converge, Star Baduki emerges as a guiding light, illuminating the path to reputable and enjoyable Baduki gameplay. With an unwavering commitment to safety, guaranteed repayment, and a passion for ensuring a memorable gaming experience, Star Baduki stands as the ultimate destination for enthusiasts seeking the best Baduki sites. Embrace the thrill, revel in the excitement, and embark on a journey where fun and security harmoniously intertwine.

  7. House for sale Phuket
    Buy or sell property in Phuket Thailand with Phuket Realtor Our real estate agency offers a wide selection of homes, villas, condominiums, apartments, and land for sale We have a step by step process for sellers making it easy to exit the market Contact us today at 66 93 606 0906 to move forward!

  8. Di Daftar Slot Sweet Bonanza ini, Anda akan disuguhkan dengan tampilan layar yang menarik dan mudah dipahami. Permainan ini menggunakan format grid 6×5, dengan simbol buah-buahan yang berwarna cerah. Untuk memenangkan hadiah, Anda perlu mendapatkan kombinasi simbol yang sesuai di garis pembayaran yang aktif.

  12. Unveiling the Excellence of Gaapiacct.pixnet.net: A Pinnacle in Hair Transplantation

    Introduction:
    In the ever-evolving world of aesthetics and personal grooming, individuals seek transformative solutions to enhance their appearance and confidence. gaapiacct.pixnet.net emerges as a leading platform dedicated to the art and science of hair transplantation, with a particular focus on the revolutionary procedure known as “顯赫植髮” or “Prominent Hair Planting.”

    Understanding the Significance:
    The phrase “顯赫植髮” translates to “Prominent Hair Planting,” indicating a commitment to delivering outstanding results in the field of hair restoration. Gaapiacct.pixnet.net stands out as a beacon in this domain, promising a comprehensive and effective approach to address the concerns of individuals facing hair loss or thinning.

    Why Gaapiacct.pixnet.net is the Best Choice:

    Expertise in FUE Hair Transplantation:
    Gaapiacct.pixnet.net specializes in FUE (Follicular Unit Extraction) hair transplantation, a cutting-edge technique that ensures a natural-looking and minimally invasive solution to hair loss. The website provides detailed insights into the FUE process, assuring visitors of the expertise and precision employed in each procedure.

    Monthly Transformation Stories:
    The website features compelling monthly transformation stories, offering a firsthand look at the success stories of individuals who have undergone the “顯赫植髮” procedure. These narratives not only inspire confidence but also serve as a testament to the proficiency and dedication of the professionals associated with Gaapiacct.pixnet.net.

    Comprehensive Hair Care Resources:
    Gaapiacct.pixnet.net goes beyond being a service provider; it serves as a knowledge hub for all things related to hair care. From pre-transplantation preparations to post-transplantation care tips, the website equips visitors with valuable information to make informed decisions about their hair restoration journey.

    Client Testimonials and Reviews:
    Genuine client testimonials and reviews form an integral part of Gaapiacct.pixnet.net, allowing potential clients to gauge the satisfaction levels of previous customers. Positive feedback underscores the reliability and efficacy of the services offered, instilling confidence in those considering the “顯赫植髮” procedure.

    Interactive Q&A Section:
    Recognizing the importance of clarity and transparency, Gaapiacct.pixnet.net hosts an interactive Q&A section where visitors can find answers to common queries related to hair transplantation. This commitment to open communication fosters trust and ensures that individuals are well-informed before making decisions.

    Conclusion:
    Gaapiacct.pixnet.net stands as a paragon of excellence in the realm of hair transplantation. Its dedication to the “顯赫植髮” procedure, coupled with a commitment to transparency and client satisfaction, sets it apart as the go-to destination for individuals seeking effective and reliable solutions for hair loss. Explore the website, delve into the success stories, and embark on a transformative journey towards a more confident and vibrant you.

  13. I have read a few of the articles on your website now, and I really like your style of blogging. I added it to my favorites blog site list and will be checking back soon. Please check out my site as well and let me know what you think. เว็บใหญ่

  15. Hi, possibly i’m being a little off topic here, but I was browsing your site and it looks stimulating. I’m writing a blog and trying to make it look neat, but everytime I touch it I mess something up. Did you design the blog yourself?
    굿모닝토토 도메인

  18. Di Paito Sdy ini dapat membantu pemain dalam mengatur strategi permainan Anda. Pemain dapat melihat angka-angka yang sering muncul dalam periode waktu tertentu dan menggunakannya sebagai acuan untuk memilih angka-angka taruhan Anda.

  19. implant dentar bucuresti Când vine vorba de implanturi dentare în București, Clinica Prodent se distinge ca un simbol al excelenței. Prin combinarea expertizei, tehnologiei și îngrijirii autentice, se asigură că fiecare pacient pleacă cu un zâmbet și cu încredere reînnoite.

  25. This is very interesting, You are a very professional blogger. I’ve joined your feed and look ahead to seeking more of your excellent post. Additionally, I’ve shared your web site in my social networks. 토토검증

  26. Your writing is perfect and complete. 먹튀사이트 However, I think it will be more wonderful if your post includes additional topics that I am thinking of. I have a lot of posts on my site similar to your topic. Would you like to visit once?

  27. Property for sale Phuket
    Buy or sell property in Phuket Thailand with Phuket Realtor Our real estate agency offers a wide selection of homes, villas, condominiums, apartments, and land for sale We have a step by step process for sellers making it easy to exit the market Contact us today at 66 93 606 0906 to move forward!

  28. Hi, That looks great, Very nice and informative content. I am a blogger and I own a site. If you are interested in Fashion write for us
    , Please contact me using the link if you need any guest post services.

  43. Permainan <a href="https://uks.iainlangsa.ac.id/ladangtoto2/&quot; rel="Ladangtoto2 menawarkan berbagai jenis permainan togel yang lengkap. Para pemain dapat memilih dari berbagai pasaran togel terkenal seperti Singapore, Hong Kong, Sydney, dan banyak lagi. Dengan begitu, para penggemar togel dapat menikmati berbagai variasi permainan dan meningkatkan peluang mereka untuk memenangkan hadiah besar.

  46. Cheat Maxwin Slot Pragmatic: Fakta yang Perlu Diketahui! Salah satu kata kunci yang sering dicari adalah cheat maxwin slot Pragmatic. Namun, sebelum kita melangkah lebih jauh, penting untuk memahami bahwa game penghasil uang nyata adalah aktivitas yang harus dilakukan secara bertanggung jawab. Tidak ada jaminan bahwa menggunakan cheat akan memberikan keuntungan jangka panjang, dan dapat melanggar aturan permainan yang berlaku, kita akan membahas fakta dan mitos seputar apk hack slot Pragmatic.

  48. Trademark Federal Credit Union, with a history dating back to 1936 during the Great Depression, stands today as a beacon of financial reliability and community support in Maine. Trademark Credit Union Scarborough in the philosophy of ‘people helping people’, this member-owned, not-for-profit cooperative has evolved through thoughtful mergers and expansions to serve a wide demographic. Trademark FCU is distinguished by its commitment to the overall well-being of its members, employees, and communities, offering a comprehensive suite of financial products and services.

    At Trademark FCU, the focus extends beyond traditional banking. With innovative features like Interactive Teller Machines (ITMs) that blend the convenience of ATMs with the personal touch of live tellers, the credit union emphasizes accessibility and ease. This approach is further enhanced by their forthcoming mobile app, set to bring financial management directly to members’ fingertips.

    The credit union’s ethos of empowering members to pursue their passions is evident in their approach to financial wellness. Recognized consistently as one of Maine’s Best Places To Work, Trademark FCU has cultivated an environment of inclusion, trust, and collaboration, striving to understand and cater to the unique financial needs of each member. From personalized financial advice to home equity loans, the team at Trademark FCU is committed to helping members achieve financial security and peace of mind. In doing so, Trademark FCU upholds a culture of authenticity and advocacy, challenging the status quo and underscoring the value of a community-focused financial institution

  49. Struggling with assignments? Seek expert assistance from Online Assignment Writing Help. Our team of qualified professionals provides comprehensive solutions to your academic challenges. Whether it’s essay writing, research papers, or problem-solving, we’re here to guide you towards success. Experience the convenience of personalized support, timely delivery, and top-notch quality with Online Assignment Help.

Leave a Reply

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