When we talk about revenue management, casino complexes require a completely distinctive approach than classic hotels.
If it is implemented correctly, a successful casino revenue management policy could support managers present their casino to the correct audience and evaluate products to increase revenues.
According to the recent webinar “Understanding the Basics of Casino Revenue Management,” published by Nevin Reed who works as Director of casino services and examines methods behind casino revenue policy:
“Rapid advancements in technology have changed the game. The best casinos gather supply, demand, worth data, total profit and analyze it. They use it to make operational, comp and pricing decisions.” If you just want to enjoy the casino, we suggest you follow the link – https://himmelspill.com/casino-pa-nett/betclic/
Or they should do it.
Further on, webinar puts forward an interesting insight into RM concepts which are applicable to casinos. If gambling venues apply different methods as part of the gambling policy, it can help casinos to create more money and improve an overall casino experience.
Contents
1.Separation
Customer separation rules differ for casinos and revenue management applications. An obvious example of this is the treatment of segment individuals and business groups. On the other hand, business travellers are treated in a different way than leisure travellers.
When we talk about segmentation in the casino world, it seems to be more problematic. Guests who participate in high-stakes chances and drink costly beverages should have different treatment than guests who take part in penny slots and drink only water. According to Reed:
„When you let your prices be fully dynamic, you open yourself up to higher revenues. Keep all your segments open and adjust your rates accordingly. Let the customer make the decision not to book with you. Don’t make it for them by closing off a rate.”
2.Forecasting measures
If you belong to high-worth users, you can book at the last minute. Casinos which are overloaded with these forecasts can price in a similar way. Reed mentioned:
“Having a system that can give you real-time pickup is highly valuable when you’re creating forecasts. It helps ensure that you’ll always have room for your best customers.”
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3.Open Pricing
This strategy enables casinos to adjust pricing for every single segment. Reed explained:
“Open Pricing allows you price off demand to maximize revenue over high demand and need periods“.
4.Loyalty and Income Management
When casinos press loyalty program schemes, they can track customers’ expenses in the whole property. Reed noted:
“You need to establish a 360-degree view of your customer and then determine what personalized offers they should receive. With the right tools, casinos can go beyond the typical comp or no-comp decision and optimize revenue with each booking. “Casinos can even shift business from OTAs to their websites by offering fenced rates to loyalty members who book direct.”
5.Reinvestment for loyal customers
If casinos want to keep customers loyal, they turn to reinvestment. Reed said:
“Reinvesting is an incredible piece of the puzzle that you have to understand to stay profitable. Casinos must evaluate a customer’s overall worth and then use that information to tailor marketing reinvestment through enticements. The real future of reinvestment is becoming a completely yieldable and dynamic function of your pricing tools”.
