Casinos are stepping up their game and leveraging new Revenue Strategy solutions that use predictive analytics and spending data from across all profit centers—including spas, nightclubs, golf courses and retail outlets—to value guests more holistically.
Armed with data-driven insights, casinos are creating more targeted loyalty offers, upgrades and marketing—and, ultimately, driving profitability off the gaming floor.
Pearl River Resort in Philadelphia, Mississippi, is the perfect example. Pearl River went from having a rudimentary revenue management methodology that was run by one coordinator who controlled the property’s inventory with a fixed transient rate between weekend and midweek to something far more advanced and dynamic.
[bctt tweet="Armed with data-driven insights, casinos can drive profitability off the gaming floor." username="OptimizeDemand"]
“There was a big need to invest in a Revenue Management system that looked at the whole picture,” says David Malbrough, Director of Planning and Analysis for Pearl River Resort in Duetto’s latest webinar, Optimizing Casino Profits via Dynamic Reinvestment.
Partnering with Duetto, Pearl River implemented a more dynamic, data-driven revenue strategy that led not only to better occupancy and profitability, but also to more effective direct marketing and better customer service.
“We needed to show our ownership that our new Revenue Strategy would increase occupancy and profitability while improving guest service,” says Malbrough.
And it did. Pearl River implemented Duetto in August and September of 2016. In those same months, occupied rooms increased by 11% (5,700 rooms).
“We’ve empowered our call center so that they can give great customer service and always offer the best rate to our guests,” says Malbrough. “They don’t have to say ‘no’ anymore.”
Now, Pearl River has consistent valuations for all guests across its departments. They’ve found that they don’t have to fill the hotel in advance with lower-rated guests and instead they can adjust their strategy in real-time, based on demand.
“Year over year, the hotel’s contribution to overall theoretical has improved nearly every weekend,” says Malbrough. “Consistently the hotel has contributed to the overall property.”
To learn more about Pearl River’s strategy, check out the on-demand webinar, which explores how casinos can move from an outdated block system toward revenue management practices that set room rates for maximum profit, while still rewarding high-value guests with appropriate casino rates and comps. In it, experts from Duetto and Pearl River talk about how the right solutions can help casinos make upgrade and player development decisions faster and in a way that reflects those guests’ spending behaviors.
And as if that’s not enough, seeing is believing: The final segment of the webinar includes a live demonstration of what Dynamic Reinvestment looks like in practice.