More intelligent pricing and reinvestment starts with better segmentation to value your casino guests more holistically.
Customers who play high-stakes games and drink top-shelf beverages should be treated differently than guests who play penny slots and drink water. Patrons who don’t gamble at all should be treated differently as well — but they still should be recognized as a valued guest if they’re spending a lot of money in your hotel suites, nightclub and spa.
This blog is taken from our whitepaper, The House Wins: Elevating Casino Revenue Management to Revenue Strategy. Download your free copy here.
How do you track all this data, including gaming data from your players and non-gaming spend from everywhere else on property? Players club cards still do an adequate job of tracking gaming revenue from registered guests and feeding that information to the CRM system. Casinos should make sure their other revenue centers can swipe those cards to give patrons credit for their spending whenever they eat or shop throughout the property. It’s also important to train your guests to charge anything and everything back to the room, including a round of golf, a spa treatment, or food and beverage.
3 Tactics to Maximize Guest Revenue
Segment Your Guests - Guests can be sorted into traditional revenue management segments, such as leisure versus business travelers, or loyalty members who booked directly versus new guests who booked via an online travel agency, such as Expedia. As marketing continues to get more complex, it’s important to understand the different acquisition costs on various channels and then determine how much inventory you want to provide to each channel.
Check your forecast - Next, casinos should refer to their forecast, booking pace and pickup to determine how to adjust their operations and to set their transient room rates. Labor and scheduling matters a great deal to casino profitability. If the house is filling up with high-rated players because of a slot tournament, fight night, e-gaming or some other high demand event, the property will need to make sure there are enough dealers and servers on the floor and enough housekeepers to turn over rooms when checkouts are expected to increase.
Check third party data - Look at nearby event calendars, analyze your historical data, and take in any third-party information that affects demand (such as airline arrivals) in order to start pricing rooms in the hotel for the highest overall profit.
See how much your revenue managers are able to yield rates and still convert those listed prices into booked reservations. Then make data-driven decisions on offers to yield by customer segment or distribution channel.