Slot Floor Optimization

Part art, part science, Slot Floor Optimization can help a casino understand the relationship between its machines and their profitability. Slot Floor Optimization helps managers determine the best mix of machines, the best prices on the machines, and the best utilization of the floor space to maximize returns. When it comes to slot floor planning, bad decisions will lower returns on deployed assets and can have a direct impact on the patron experience. Ensuring the right mix of games, at the right price, aligned to customer demands and preferences can help the casino generate incremental revenue, all the while improving the customer experience.

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Table Games RM

Historically, table games departments have been the heart of the casino[i] and even though there has been a steady decline in table games revenue since 2000[ii], this is only true for non-Asian casinos. In places like Macau, the table games/slot ratio is closer to 90/10[iii], so table games are a much more important revenue generator than in the US.

Since the highest-betting gamblers are estimated to be worth 20 to 50 times more than their lower-betting counterparts, casinos want to ensure that these high-betting players always have a spot at a table, even though it would mean that the lower-betting gamblers may not get a chance to play.[iv] With so much money at stake, it is rather amazing that most casinos base their table game minimums on the judgment of floor managers.

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Restaurant RM

Although the principles are similar, restaurant RM requires a somewhat different approach than that applied by airlines. The restaurant approach involves implementing the following five-step process:

(1)     Establish the restaurant’s baseline performance.

(2)     Understand the causes for this performance.

(3)     Formulate strategies that will drive revenue to these restaurants.

(4)     When facing the challenging task of implementation, this implementation involves strategies that fall into three categories:

a.       All-purpose strategies.

b.       Strategies to use when your restaurant is busy or “hot”.

c.        Strategies to use when your restaurant is not busy or “cold”.

(5)     Measure whether the strategies were successful or not.

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Front Office RM

In her thesis Optimizing the Role of Hotel Front Office Staff in Modern-Day Revenue Management44, Nguyen Hanh Huyen My argues that revenue management can extend beyond rooms all the way down to the front office. For My, “the term ‘Front Office’ is used in hotels worldwide and refers to employees working directly with guests and often also as the first point of contact for the arrivals.”44 The front office department can be “part of the Rooms Division department and consist itself of different function areas namely [sic] reception, reservations, guest relations, concierge, switchboard, bell service, and so on.”44 Irrespective of the hotel size or type, “front office is still considered a highly visible department and an important information center for both guests and employees throughout the hotel.”44

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