Maximizing Non-Gaming Casino Revenue

By Mark Tapling President & CEO, InfoGenesis | October 28, 2008

Non-gaming casino revenue was once considered an oxymoron. In today's industry though, it has become a vital part of most casino operator financial reports. In fact, some top players in the industry have indicated non-gaming revenue accounts for 50% or more of total revenue.

Less visible to many in the hospitality industry is the important role that technology can play in maximizing non-gaming revenue. Certainly some of the standbys of technology value like flexibility, scalability, and reliability contribute. But they represent a small part of a bigger story. It is the guest-centric and integrated nature of present and future technology that will allow non-gaming casino revenue to reach its potential.

What's Happened in the Industry

As casino resorts and hotels have matured, evolved and segued into the luxury segment, non-gaming aspects of these operations have taken on stand-alone significance. Hotel rooms in Las Vegas, Atlantic City and other gaming destinations were once "comped" for many players or available at reduced rates. These rooms now command some of the highest average daily rates in the industry.

There have been changes in other areas as well. Investments in celebrity chefs and high-end restaurants to achieve a competitive edge have consequently demanded more than "respectable" bottom line results. Retail operations-far from the t-shirt and sundry shops of days past-carry designer names and, in some cases, achieve shopping mall size. World-class spa operations and entertainment venues are attractions in and of themselves as casinos have turned into full-fledged destination resorts. On the global stage, an explosion of gaming resorts in Macau and other exotic international locations have underscored the size and complexity of this rapidly expanding industry.

Of course there's a pattern here-a steady march towards better services, creating a destination for guests who increasingly participate in their own travel planning, and retaining guest dollars rather than seeing them go somewhere else. It's been an exciting and natural evolution. But by no means is the industry done changing. The next evolution will be a little more subtle in established markets, but no less important.

Coming up in February 2018...

Social Media: Engagement is Key

There are currently 2.3 billion active users of social media networks and savvy hotel operators have incorporated social media into their marketing mix. There are a few Goliath channels on which one must have a presence (Facebook & Twitter) but there are also several newer upstart channels (Instagram, Snapchat &WeChat, for example) that merit consideration. With its 1.86 billion users, Facebook is a dominant platform where operators can drive brand awareness, facilitate bookings, offer incentives and collect sought-after reviews. Twitter's 284 million users generate 500 million tweets per day, and operators can use its platform for lead generation, building loyalty, and guest interaction. Instagram was originally a small photo-sharing site but it has blown up into a massive photo and video channel. The site can be used to post photos of the hotel property, as well as creating Instagram Stories - personal videos that disappear from the channel after 24 hours. In this regard, Instagram and Snapchat are now in direct competition. WeChat is a Chinese company whose aim is to be the App for Everything - instant messaging, social media, shopping and payment services - all in a single platform. In addition to these channels, blogging continues to be a popular method to establish leadership, enhance reputations, and engage with customers in a direct and personal way. The key to effective use of all social media is to find out where your customers are and then, to the fullest extent possible, engage with them on a personal level. This engagement is what creates a personal connection and sustains brand loyalty. The February Hotel Business Review will explore these issues and examine how some hotels are successfully integrating social media into their operations.