Academics
Only in Vegas: Operating a Mega Destination
If you missed Only in Vegas: Operating a Mega Destination, please click here to see the entire presentation in full.
A panel of industry leaders including Mark Birtha of Marriott, Arthur Keith of the Stratosphere, Sid Vaikunta of Suncoast Hotel and Casino, and Andrew Klebanow of Gaming Market Advisors provided an overview of Las Vegas operations in 2008 and discussed such topics as customer loyalty and the importance of delivering a consistently high-quality experience for the guest.
Mark Birtha provided the audience with an idea as to the scale of operations in Vegas. In 2008, Vegas welcomed 37.5 million visitors, offered 140,000 hotel rooms, had an 86.6% occupancy and $119.19 ADR, and took in $15.8 billion in revenues (40% coming from gaming—a decrease from 58% in 1990).
The panelists had an engaging discussion about the great lengths to which casinos in particular will go to generate brand loyalty. Casinos use technology to track players’ gaming behavior and to reward those whom they identify as top revenue generators. Armed with this data, casinos then spend 35% of revenues derived from mass market players and 45% of revenues from premium players on “player reinvestment,” providing perks such as F&B/hotel comps, promotions, free play, free airfare, shopping sprees, limos, and special events.
The panelists also stressed the importance of making the guest experience a top priority. For instance, they expressed hesitation regarding the implementation of electronic/dealer-less tables, which rob guests of a social experience with the dealer (who also encourage more playing time). Casinos must always carefully manage their product mix and provide guests with new offerings; if guests think that a casino is outdated, they will be quick to take their business elsewhere. However, casinos must also be careful not to change too quickly, as guests should know what to expect from casinos.