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
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!).
This is a site that is viral and very popular at the moment, let’s just visit and play on this website.https://spinoramacasino.com
calmness due to the 123bet vacations.
Pre-Owned Automobiles network in GCC, (UAE, Saudi Arabia, Oman, Qatar, Kuwait & Bahrain) . 100% Free Listings for Unlimited Time. Buy Cars, Aircrafts … used cars in kuwait
This is a trusted online site that has easy jackpots and is currently viral. For further information, just visit this website.https://dorahoki.eu/
This is extremely engaging, notwithstanding, it is significant that will mouse click on the association: patio cleaning glasgow
Recent Posts
Revenue Management in the Golf Industry Poster project where you rearrange how the poster presents information. arabuloku
Hey there! Someone in my Facebook group shared this website with us so I came to check it out. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers! Superb blog and wonderful design. Trasloco a Roma
You made some good points there. I did a search on the subject and found most individuals will go along with with your website. Kamagra
were the most Live22 memorable for me.
This is a super jackpot shooting site, you have to try it because it is very profitable, let’s just play on this website.https://dailyfitinfo.com
getting a rate or fare Menyusun Roadmap a great deal more in revenue because
be viewed as a Pengertian Blockhain of implicit and explicit
Awesome, your writing is very impressive! I always enjoy the way you cover topics in such depth yet keep it easy to understand. Thank you for sharing your knowledge and insights. I will be happy to follow your future articles. https://29667v.com
implement sophisticated Sistem Blockhain pricing strategies in order to maximize revenue
If you play on this site, Maxwin is definitely guaranteed, let’s just visit and play on this website.https://techmarhub.com
many other services Cara Kerja Blockhain, admission to a night club or entertainment
Very interesting article! I really enjoyed the way you presented the information in such a detailed yet easy to follow manner. Your explanations of every aspect of the topic really helped me understand things that I previously thought were complicated. Thank you for sharing your knowledge and providing valuable insights. I look forward to your future posts! https://zjgywt.com
If you want to know easy tricks to win, let’s just visit this website.https://winwishful.com
I really enjoyed reading this article. You have a very interesting and easy to understand way of writing. Every point you made was very clear and gave me new insights. Thank you for taking the time to share your knowledge in such a structured and interesting way. I will definitely be back to read your other articles. Keep up the good work! https://3335283.com
https://ppdb.stkipkieraha.ac.id/file/
HablarApp.com, the essential app for Spanish speakers who want to overcome the fear of speaking English in challenging situations. Our serious and focused method will help you communicate with confidence
Curso de inglés
Our “emotions” determine whether 123GOAL our potential can be used to benefit ourselves.
For those of you who like playing online, here I will tell you about a very profitable online site that is guaranteed to be safe and reliable, let’s just visit and play this website.https://sweetdreamears.com/
aviator game by SPRIBElNp
This is a very interesting pattern site, so just visit and play this website.http://autosustad.com/
Thank you for writing this article. The explanation is very clear and easy to understand. I understand more about this topic. Hopefully this blog will continue to be successful. https://ceousweekly.com
This is an official and trusted site with fast and certainly satisfying service, let’s just visit it waktogel
This article was a real eye opener. I really appreciate the way you explained the topic in such a detailed and easy to understand way. It is rare to find a piece of writing that combines such in-depth information with a light and easy to read writing style. I feel like I gained a lot of new knowledge that I didn’t know before. Thank you for sharing this valuable information. I will continue to follow your blog and can’t wait to read more interesting articles. May you continue to be successful and may more readers benefit from your writing! https://englishcoachtoulouse.com
aviator game by SPRIBEbVm
Really nice style and design and excellent content , nothing at all else we need : D. ciobet88
This is a site that has abundant bonuses, let’s just visit this website.https://iotaswedenoo.info
Your blog is one of a kind, i love the way you organize the topics.:’-”‘ slot gacor
Saya baru saja mencoba daman login dan tampaknya sistemnya sangat mudah digunakan. Apakah ada yang punya pengalaman yang sama?
Being yourself doesn’t require nigoal creating an image.
air duct cleaning
iPurity is an independent commercial & home cleaning service that provides a wide range of cleaning services, from AC to Water Tank Cleaning in Dubai & Abu Dhabi.
to send me to a summer 123bet camp. Our school itself
Relais Expert Enquête & Médiation Inc. stands out as a leader in workplace investigations, training, mediation, and coaching, offering a comprehensive range of services tailored to meet the specific needs of businesses. Visit here Workplace Investigations
If you play on this site you are guaranteed an auto jackpot, let’s just play on this website.https://fashionmarkets.xyz
Great weblog right here! Also your web site quite a bit up very fast! What host are you the usage of? Can I am getting your associate hyperlink in your host? I wish my web site loaded up as quickly as yours lol. https://www.imexally.com/how-to-choose-reliable-chickpeas-suppliers/
I think this website holds very great pent written content blog posts. Toto Macau
tpplay game has really outdone itself with the range of Wingo and Aviator games available. If you’re a fan of these games, you definitely need to register on their app.
Professional Orlando Airport Transportation | MCO Orlando Airport Shuttle | Orlando Airport pickup to Disney Hotels Port Canaveral Transportation. orlando airport transportation
عایق صوتی و حرارتی پشم سنگ
exciting submit. i have Been questioning about this problem, so thank you for posting. pretty cool post.It ‘s actually very fine and useful put up.thanks have a peek at this web-site
DEWATOGEL | Daftar Situs Permainan Gacor Terlengkap Asia dewatogel
Fantastic site. A lot of helpful information here. I am sending it to several pals ans also sharing in delicious. And certainly, thanks on your sweat! analytics and digital asset management, analytics and domain investors
We specialize in providing security courses including bodyguard training, CCTV, and more training courses in West Midlands & Birmingham.
Door supervisor course Coventry
If you play on this site, it is definitely safe because this site is official and trusted, let’s just play on this website.https://stopemorroidi.net
This is a modern online betting site and of course very profitable, this site is guaranteed to be safe and reliable, let’s immediately visit and play this website.https://69dtfn.com
This is the reason online marketing specials efforts so you can effective analyze earlier than post. Put simply to write down more beneficial destination of this nature. 일본야동