In the casino industry, the saying goes that the house always wins. But on the highly competitive Las Vegas strip, it’s not always that clear cut. To survive and thrive, gaming properties need to find strategies to optimize revenue at every opportunity.
Total property profit optimization
The property-wide objective for any Las Vegas gaming hotel is to fill the property with the highest value, most profitable mix of business. A key part of this is getting multiple casino departments (such as gaming, restaurants, the conference center and entertainment) to work together rather than in silos.
But the best way to operate involves a total profit optimization revenue model. This model involves truly understanding what’s expected of each department, and how this works as an integrative resort. Driving this holistic approach, a hotel resort must understand the booking patterns and buying behavior of each one of its customers.
By operating in this cohesive way, a hotel can:
- Achieve optimal rates for each segment to drive the most profitable mix
- Have confidence that the mix of business is the best that can be achieved
- Identify opportunities and/or concerns well in advance
- Give all departments the freedom to sell rooms
- Reduce or eliminate 11th hour scrambling to sell rooms
This total profit optimization model can be broken down into three distinct areas: forecasting, marketing and reporting.
Forecasting
By utilizing the data at your disposal, your hotel can forecast with greater accuracy. You can then better understand each of your customer segments and analyze different buyer behaviors. All departments should be involved in this process so they know what’s happening from a room standpoint, helping them to plan accordingly.
In terms of setting rates, a lot of smaller casino hotels still have call center staff call competitors to see what they’re selling. If your hotel still operates in this way, intelligent rate shopping systems will give you a far more effective way of tracking competitor prices to remain ahead of the curve.
Finally, digging into the data you have is imperative to understand your cost of acquisition and see what goes into capturing a piece of business.
