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!).

18,166 thoughts on “Casino Revenue Management”

  2. The tips you supplied proper right here are very valuable. It in truth become such an thrilling surprise to get that watching for me immediately i wakened this very day. They are often to the point and easy to recognize. Warm regards for the smart thoughts you have got shared above. Win247

  3. For those of you who like to play online betting on this site, there are accurate predictions that are very good and guaranteed to be safe and reliable, let’s just visit it bbfstoto

  11. Juarez Legal: The Premier Family Immigration Lawyer in NYC

    Introduction

    Navigating the complexities of family immigration law can be overwhelming, especially in a bustling city like New York. Whether you’re seeking to reunite with loved ones or adjust your immigration status, having an experienced and trusted attorney can make a significant difference. Juarez Legal stands out as a premier family immigration lawyer in NYC, known for its expertise, dedication, and track record of success. In this blog, we’ll explore why Juarez Legal is regarded as one of the best in the field and how they can assist you with your family’s immigration needs.

    Why Choose Juarez Legal for Your Family Immigration Needs?

    1. Expertise in Family Immigration Law

    Juarez Legal boasts a deep understanding of family immigration law, including complex cases involving visas, green cards, and citizenship. The firm’s attorneys are well-versed in the latest legal developments and policies, ensuring that clients receive informed and effective representation. Their expertise extends to handling intricate cases such as waivers, appeals, and adjustments of status, making them a reliable choice for families navigating the immigration process.

    2. Proven Track Record of Success

    With a history of successful outcomes, Juarez Legal has established itself as a leading authority in family immigration law. The firm’s impressive track record includes numerous cases of visa approvals, successful green card applications, and citizenship grants. Their success is a testament to their skill in crafting effective legal strategies and advocating for their client’s best interests.

    3. Personalized and Compassionate Legal Services

    Juarez Legal is renowned for its personalized approach to family immigration cases. The firm understands that each family’s situation is unique, and they tailor their services to meet individual needs. Their compassionate attorneys provide one-on-one attention, guiding clients through every step of the immigration process with care and empathy. This personalized approach ensures that clients feel supported and informed throughout their legal journey.

    4. Comprehensive Legal Support

    From the initial consultation to the final resolution of your case, Juarez Legal offers comprehensive legal support. Their services include preparing and filing necessary documents, representing clients in interviews and hearings, and addressing any legal issues that may arise. Their thorough approach ensures that all aspects of your case are handled efficiently and effectively.

    5. Strong Client Advocacy

    At Juarez Legal, client advocacy is a core principle. The firm is dedicated to protecting clients’ rights and interests, providing robust representation in all legal matters. Their attorneys are skilled negotiators and litigious professionals who fight tirelessly to achieve favorable outcomes for their clients.

    What Sets Juarez Legal Apart

    1. Extensive Knowledge and Experience

    Juarez Legal’s attorneys possess extensive knowledge and experience in family immigration law. Their deep understanding of immigration policies and procedures enables them to navigate complex legal landscapes with confidence. This expertise is crucial in achieving successful outcomes and addressing any challenges that may arise.

    2. Exceptional Client Reviews

    The firm has garnered exceptional reviews from clients, highlighting their professionalism, responsiveness, and effectiveness. Positive testimonials reflect Juarez Legal’s commitment to providing top-notch legal services and delivering results that exceed clients’ expectations.

    3. Transparent and Honest Communication

    Juarez Legal values transparent communication with clients. They provide clear explanations of legal processes, potential outcomes, and associated costs. This honesty ensures that clients are fully informed and able to make well-considered decisions about their cases.

    4. Dedication to Community

    Juarez Legal is deeply committed to serving the NYC community. Their dedication extends beyond individual cases, as they actively participate in community outreach and legal education efforts. This commitment underscores their role as a trusted advocate for families seeking immigration assistance.

    Conclusion

    When it comes to family immigration matters in NYC, Juarez Legal stands out as a premier choice for effective, compassionate, and expert legal representation. Their extensive knowledge of family immigration law, proven success, and personalized approach make them a top-rated firm for handling complex immigration cases. If you’re seeking a trusted partner to guide you through the immigration process, Juarez Legal offers the expertise and dedication you need to achieve your goals.

    For comprehensive and compassionate legal assistance with your family’s immigration needs, contact Juarez Legal today. Their experienced attorneys are ready to provide the support and advocacy you need to navigate the immigration process with confidence.
    https://juarezlegal.com/service/family-lawyer-new-york/

  13. What this will mean is that traceability-exact software programs (like HarvestMark and Red Prairie) isn’t created to control supporting paper paperwork this sort of as get orders, invoices, costs of lading, and so on. The consequence is the equivalent of a jigsaw puzzle that’s lacking a quarter of its items. Sure, you have some items, but you’re lacking just adequate that the image isn’t comprehensive. In the celebration of a foods recall, when time is of the essence, developing to hunt for lacking pieces isn’t acceptable. Garuda138 Login

  17. I’m impressed, I must say. Actually rarely do I encounter a blog that’s both educative and entertaining, and without a doubt, you could have hit the nail about the head. Your thought is outstanding; ab muscles an element that insufficient everyone is speaking intelligently about. My business is happy which i came across this during my hunt for something about it. herototo

  19. After study several of the blogs with your website now, i truly much like your strategy for blogging. I bookmarked it to my bookmark web site list and will be checking back soon. Pls look at my internet site at the same time and make me aware if you agree. herototo

  20. Most certainly, i have to point out that a crafting skills not necessarily which will undesirable, then again i am able to you may enhance any publishing ability. Working with reduced written text to imply the actual. You could attempt yahoo for creating knowledge guidance website or services. Coffee Shop POS

  22. What a fantastic read! I couldn’t agree more with the points made in this article. Before my friend’s engagement, I wanted to give something new and exciting, and someone introduced me to SEV Laser. I decided to reserve a time for them as a gift, and they were absolutely thrilled! After reading the experiences shared by others, I felt compelled to talk about it and share my own positive experience. If you’re considering Laser Hair Removal in Austin, I highly recommend checking it out. You won’t be disappointed!

  24. Many homework on the continual hunt along with offstage on the road to winning. Definitely not attached, simple to-fall as a result of wayside; And not investigation, afterward into a path travel toward the black. vegas sweeps 777

  25. You can certainly see your enthusiasm within the work you write. The arena hopes for more passionate writers such as you who are not afraid to mention how they believe. Always go after your heart. ladang77

  26. What a fun discovered! I gave a friend a session with SEV Laser and introduced them to it. They were ecstatic with the whole thing. I felt prompted to write after going through the comments here and realizing how many individuals have had amazing experiences. SEV Laser has the most professional and upbeat atmosphere around. Don’t hesitate if you’re thinking about doing it. Make an appointment for Laser Hair Removal in Austin. It’s a wonderful treat for you and a fantastic present idea!

  27. Youre so cool! I dont suppose Ive read anything in this way just before. So nice to seek out somebody by original ideas on this subject. realy we appreciate you starting this up. this excellent website is one area that is required on the internet, somebody with a little originality. helpful problem for bringing a new challenge on the internet! cricplus

  34. I’m always excited for my kwg login because you never know what bonus you’ll get. The win streak bonus is definitely a highlight for me.

  36. I am very impressed with the variety of topics covered on this blog. Each article always offers new insights that open my perspective. The detailed and in-depth writing makes me want to read from start to finish. It is rare to find a blog that is able to present content so consistently and with such quality. Thank you for providing content that is not only entertaining but also educational. I will continue to come back for more articles! https://203411.com/

  38. เสนอแนะเลยสำหรับผู้ใช้ลีน Sippin lean เป็นอีกหนึ่งแบรนด์ที่น่าลิ้มลอง
    ด้วยความหวานที่พอดี แล้วก็องค์ประกอบที่พอดิบพอดี ทำให้ Sippin lean เป็นอีกหนึ่งแบรนด์ลีนที่มีคุณค่าแม้กระนั้นการลิ้มรสมากมายก่ายกอง รวมทั้งราคาที่เข้าถึงได้ง่าย แม้ว่าจะเป็นของนำเข้าจากอเมริกา แต่ว่าก็ได้รับการยกเว้นภาษีพิเศษ ทำให้สามารถนำเข้ามาได้โดยสวัสดิภาพรวมทั้งทุนไม่แพง เสนอแนะสำหรับผู้ใดกันที่พอใจ เข้ามาเยี่ยมชมและก็หารายละเอียดอื่นๆเกี่ยวกับลีนตัวนี้เหมาะ LEANBKK ขายลีนของจริงจากนอก 100% https://leanbkk.net/

  40. […]we like to honor many other internet sites on the web, even if they aren’t linked to us, by linking to them. Under are some webpages worth checking out[…]… acim

  41. 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! acim

  45. I am an investor of gate io, I have consulted a lot of information, I hope to upgrade my 메이저사이트 investment strategy with a new model. Your article creation ideas have given me a lot of inspiration, but I still have some doubts. I wonder if you can help me? Thanks.

  50. For anyone who hasn’t done the kwg game login yet, you’re definitely missing something big. The variety of money-making games available is impressive and so enjoyable!

Leave a Reply

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