Seven trending gaming industry stories that will impact your casino Revenue Strategy.
1. Focus shifts to casino BOH systems
For obvious reasons, a lot of time and money is spent on customer-facing products within the casino space, writes Casino Journal editor Paul Doocey. But equally important to a sustainable gaming enterprise are the plethora of back-office technologies that streamline internal operations and provide vital relief to bottom-line costs.
Doocey and Casino Journal bring to light five back-of-house casino vendors that are constantly releasing new or improved products, systems and services. To help wade through this sea of solutions, here is a recap of some recent new product releases and upgrades that deserve a second glance, as determined by the editors of Casino Journal.Focus shifts to casino BOH systems, plus 7 trending #revenuestrategy stories Click To Tweet
2. Macau casino revenue soars
Boosted by the Chinese New Year holiday period and reported strong VIP demand, Macau revenue in February hit 22 billion Macau patacas (US$2.75 billion), up 17.8% from a year ago and well ahead of consensus estimates of high-single-digit growth. February was the best monthly showing since January 2015.
J.P. Morgan Securities in Hong Kong calls the February result “a truly remarkable beat.”
“This Chinese New Year was the first major Chinese holiday following the recent ‘VIP turnaround’ (which in turn substantially improved liquidity in junket system) and new property openings (which increased the room availability during peak periods); thus, the industry was able to deliver full potential of the current demand pictures,” the analysts write, underscoring the impact of the openings of Steve Wynn’s Wynn Palace and Sheldon Adelson’s Parisian Macao along the Cotai Strip.
3. A new US government’s effects on the casino industry
The U.S. government’s potential policy changes are top of mind for all casino owners and operators. A recent survey by Gaming & Leisure magazine shows, despite the President’s casino-hospitality background, a majority of casino executives are leery of where we’re headed:
- 18.7% – Ecstatic! I love Trump!
- 25% – Pretty good. I think he’ll do a good job for the country.
- 12.5% – Not so good. I didn’t vote for him.
- 43.7% – Miserable. I ran out of Kleenex.
4. Veto kills senate bill to punish Icahn for closing Taj
In mid-February, the New Jersey State Senate failed to override a veto of a bill that would have suspended the gambling license of the Trump Taj Mahal Atlantic City for five years. Democratic lawmakers drafted the bill to suspend licenses of any casino in the state that “substantially close” last year or going forward.
The Taj Mahal, owned by Carl Icahn, is the only property that would have been affected, as Icahn shut the casino down in October after failing to reach a new agreement with its unionized workforce. Gov. Chris Christie vetoed the bill and said it “shamelessly backs one side in a labor dispute.”
5. SXSW validates sports gambling as an emerging issue
A sure sign that the push to legalize and regulate sports gambling has gone mainstream, a panel discussion will take up the topic at the South by Southwest Conference in Austin, Texas, on March 11. The panel, organized by the American Gaming Association, will feature experts from ESPN and Tulane University. Topics to be covered include e-sports and daily fantasy sports, casino sports betting, and Congress possibly revisiting the Professional and Amatuer Sports Protection Act.
6. Where does the spa fit into your Revenue Strategy?
Spas are increasingly becoming a top attraction at casino resorts around the world, and it’s no longer just the big boys who’ve added the relaxation amenity to their lineups. As examples, Westgate Las Vegas Resort & Casino has announced the Serenity Spa by Westgate is now open to the public, and Mandara Spa has found a home in Mohegan Sun’s Earth Tower.
Spas should be a regular component to your casino Revenue Strategy, ensuring packages that include spa treatments are offered through marketing materials and those who book for a spa treatment are given personalized room rates. Most importantly, casinos should be tracking guest spend at the spa and using that data to consider total customer worth and to dynamically price offers based off those analytics.
7. London casino conference continues attendance growth
Did you catch Duetto at the 2017 ICE Totally Gaming conference in London?
By the looks of the attendance numbers, many of you did. ICE 2017, held February 7-8, will be declared the biggest on record, pending verification. The outline statistics show that, for the first time, ICE broke through the 30,000 barrier, recording an attendance of 30,213. The figure represents the sixth consecutive year of growth and is 5.7% up on the previous best, which was set last year.
At ICE 2017, Duetto’s co-founder and Chief Analytics and Product Officer Marco Benvenuti discussed how to maximize technology for customers and optimize total revenue.
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Tags: Carl Icahn, Casino Journal, casino spa, Chinese New Year, Chris Christie, Donald Trump, Duetto, Forbes, Gaming & Leisure, hotel distribution, hotel pricing, Hotel Revenue Management, hotel revenue strategy, hotel sales and marketing, hotel technology, hotel yielding, ICE Totally Gaming conference, J.P. Morgan Securities, macau, Mandara Spa, Mohegan Sun's Earth Tower, New Jersey State Senate, patacas, paul dooces, RMS, Serenity Spa by Westgate, Sheldon Adelson, Steve Wynn, SXSW, Taj Mahal, Westgate Las Vegas Resort & Casino, World Gaming Magazine