Advancements in technology and Revenue Strategy mean casinos can leave much less to chance when maximizing their profitability. It’s easier today to collect and analyze demand data and to value customers holistically based on what they spend — whether they gamble or not. As a result, dynamic pricing and reinvestment strategies are possible, but they require a greater degree of collaboration and sharing between the casino and the hotel than ever before.
This blog is taken from our whitepaper, The House Wins: Elevating Casino Revenue Management to Revenue Strategy. Download your free copy here.
The gaming industry continues to evolve rapidly. Today, a modern casino experience is available within a short drive of most major markets, and gaming licenses continue to spread to new states. But it cuts both ways: A booming industry with increased competition also means that gaming revenues can get diluted.
Add to that a changing casino consumer — with younger patrons focused on dining and entertainment as much as, or even more than, playing casino games — and it’s clear that casinos must look beyond the gaming floor for continued growth. All casino properties, not just integrated resorts, must begin to act as true destinations. They must treat their hotel rooms, restaurants and spas, retail outlets, and golf courses not as thrown-in “amenities” but as revenue and profit centers.
How to Avoid Money-losing Mistakes
New technologies and new strategies enable that better alignment among your casino’s teams, staving off money-losing mistakes, such as:
- Overly investing in lower-rated guests
- Selling out too quick
- Discounting at the wrong time
A better-designed tech stack gets your property part-way there; better collaboration among your departments finishes the job. Such teamwork takes time to develop. Everybody must to commit to a common Revenue Strategy for the long haul, and property leaders need to establish the revenue culture that will get buy-in from the staff.
Unfortunately, the old-school mentality that the casino and the hotel have different purposes and goals, can still persist today. Most properties need a culture change. When the casino operations, marketing and revenue management departments work together toward a shared goal of increasing total profitability, through both gaming and nongaming spending, they leverage a modern casino Revenue Strategy to its fullest potential.