Press Releases
Room sales drive revenue for most of the hotel industry. At casino properties, a guest’s value on the gaming floor is the real payoff. But that does not mean casino hotels let room-related revenue take a back seat. If they did, they would be missing a huge opportunity, says Lyra Beck, Corporate Director of Hotel Yield and Teleservices for Boyd Gaming.
“At a casino hotel, the hotel room is an amenity; it is not the reason guests are on property,” explained Beck. “A casino hotel is the place where gamers rest when they are not playing.” Beck should know; she has been working on the hotel side of the gaming industry since she graduated from college at University of Nevada Las Vegas. “In the 1980s, a casino hotel’s revenue potential was not given a second thought. But that has changed. Today we use cutting-edge revenue management systems and an experienced team to maximize property profitability,” said Beck.
What transformed the casino hotel industry’s view of room-related revenue was Steve Wynn. “Wynn had a vision of the hotel as a centerpiece offering a world-class spa, 5-Star restaurants and spectacular entertainment,” said Beck. “The hotel is still an amenity, but now it is a huge amenity that supports itself.”
To transform casino properties from loss leaders to profit centers, Boyd Gaming conducts weekly rate-setting meetings where managers implement strategies that put the right guest in the right room at the right price. High rollers still get the VIP treatment when it comes to rates, while stay-no-play ‘retail customers’ are charged amounts calculated to maximize their value to the property.
Boyd and other companies use computer analysis for gamers to ensure that the right person gets the right rate offer by utilizing individual player ID numbers. Non-gamers receive a different rate designation. Beck explained, “At Boyd, we conduct frequent sessions where department heads discuss property demand and set room rates. We use a revenue management system from The Rainmaker Group that factors in each guest’s forecasted gaming value while analyzing other influences, like demand and city-wide events, to recommend optimized rates for each guest segment.” The combination of Boyd’s strategy sessions and revenue management technology has helped the company reduce comp expenses 35 percent and raise cash revenue four percent. Boyd also works hard to retain the loyalty of its non-gaming retail guests by educating reservation staff on how to introduce the new rate programs gently.
The most important part of implementing a new rate policy is training – for staff and guests. “Most of our reservations are by phone,” said Beck. “I wrote scripts for our Teleservices agents specifically to make the new rates easier for longtime guests to understand. We explain the policy change politely, answer any questions, then provide room and rate options. Having the Rainmaker system determine the rate makes it simpler for our agents.” Beck also monitors her room sales throughout the day to revise rates according to pickup and demand.
“Revenue management is a way of doing business, not a computer system,” Beck says. “And while casino hotels still focus on the dollars spent on the gaming floor, sophisticated tools help us boost revenue in an area previously considered an afterthought – the hotel room.”
About Rainmaker Group
The Rainmaker Group provides, implements and supports the revolution LRO profit optimization software which is an innovative technology solution that enables multi-family housing operators to maximize revenue from apartment leases. revolution LRO lease rate improvement results have been independently validated by Price Waterhouse Coopers and Bain & Company. For over five years revolution LRO has delivered optimized leasing rates to the largest operators in the industry including Archstone-Smith, Equity Residential, Post Properties, Simpson Housing, Home Properties, and a number of other leading multifamily housing companies. The Rainmaker Group incorporated in 1998.
The Rainmaker Group
Tammy Farley
5755 North Point Parkway
Suite 77
Alpharetta, GA 30022
Phone: 678-578-5777
Email: sales@letitrain.com
http://www.letitrain.com
Media Contact:
Julie Keyser-Squires
Softscribe Inc.
Julie@softscribeinc.com
(404)256-5512
http://www.softscribeinc.com
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Casino Properties Find Revenue Opportunities Beyond Gaming
Room sales drive revenue for most of the hotel industry. At casino properties, a guest’s value on the gaming floor is the real payoff. But that does not mean casino hotels let room-related revenue take a back seat. If they did, they would be missing a huge opportunity, says Lyra Beck, Corporate Director of Hotel Yield and Teleservices for Boyd Gaming.
“At a casino hotel, the hotel room is an amenity; it is not the reason guests are on property,” explained Beck. “A casino hotel is the place where gamers rest when they are not playing.” Beck should know; she has been working on the hotel side of the gaming industry since she graduated from college at University of Nevada Las Vegas. “In the 1980s, a casino hotel’s revenue potential was not given a second thought. But that has changed. Today we use cutting-edge revenue management systems and an experienced team to maximize property profitability,” said Beck.
What transformed the casino hotel industry’s view of room-related revenue was Steve Wynn. “Wynn had a vision of the hotel as a centerpiece offering a world-class spa, 5-Star restaurants and spectacular entertainment,” said Beck. “The hotel is still an amenity, but now it is a huge amenity that supports itself.”
To transform casino properties from loss leaders to profit centers, Boyd Gaming conducts weekly rate-setting meetings where managers implement strategies that put the right guest in the right room at the right price. High rollers still get the VIP treatment when it comes to rates, while stay-no-play ‘retail customers’ are charged amounts calculated to maximize their value to the property.
Boyd and other companies use computer analysis for gamers to ensure that the right person gets the right rate offer by utilizing individual player ID numbers. Non-gamers receive a different rate designation. Beck explained, “At Boyd, we conduct frequent sessions where department heads discuss property demand and set room rates. We use a revenue management system from The Rainmaker Group that factors in each guest’s forecasted gaming value while analyzing other influences, like demand and city-wide events, to recommend optimized rates for each guest segment.” The combination of Boyd’s strategy sessions and revenue management technology has helped the company reduce comp expenses 35 percent and raise cash revenue four percent. Boyd also works hard to retain the loyalty of its non-gaming retail guests by educating reservation staff on how to introduce the new rate programs gently.
The most important part of implementing a new rate policy is training – for staff and guests. “Most of our reservations are by phone,” said Beck. “I wrote scripts for our Teleservices agents specifically to make the new rates easier for longtime guests to understand. We explain the policy change politely, answer any questions, then provide room and rate options. Having the Rainmaker system determine the rate makes it simpler for our agents.” Beck also monitors her room sales throughout the day to revise rates according to pickup and demand.
“Revenue management is a way of doing business, not a computer system,” Beck says. “And while casino hotels still focus on the dollars spent on the gaming floor, sophisticated tools help us boost revenue in an area previously considered an afterthought – the hotel room.”
About Rainmaker Group
The Rainmaker Group provides, implements and supports the revolution LRO profit optimization software which is an innovative technology solution that enables multi-family housing operators to maximize revenue from apartment leases. revolution LRO lease rate improvement results have been independently validated by Price Waterhouse Coopers and Bain & Company. For over five years revolution LRO has delivered optimized leasing rates to the largest operators in the industry including Archstone-Smith, Equity Residential, Post Properties, Simpson Housing, Home Properties, and a number of other leading multifamily housing companies. The Rainmaker Group incorporated in 1998.
The Rainmaker Group
Tammy Farley
5755 North Point Parkway
Suite 77
Alpharetta, GA 30022
Phone: 678-578-5777
Email: sales@letitrain.com
http://www.letitrain.com
Media Contact:
Julie Keyser-Squires
Softscribe Inc.
Julie@softscribeinc.com
(404)256-5512
http://www.softscribeinc.com
