Foxwoods Leverages Revenue Management Solution for Better Bookings
Revenue management is the cornerstone of effective marketing, particularly for a casino hotel. Standard hotel revenue management (RM) procedures base room rate recommendations on anticipated property demand derived from historical data and current market conditions. But RM at most casino hotels base room rates and availability on the total value each guest segment is forecasted to provide to the entire enterprise, including the property's outlets, activities, hotel and the casino. When total guest value is used as the room rate criteria, the result is a mix of customers that optimize each hotel guest's profitability to the property and also maximizes hotel room revenue.
Total revenue vs. guest value
Maximizing room revenue is the right strategy for a normal hotel operation where rooms are the top
income source, but it may not be the best plan for a casino property with other profit centers that include multiple dining options, shows and a gaming floor. Basing room rates and availability on total-guest-value is essential for a property like Foxwoods, but it is more complex than just rolling up a guest's revenue. To do it right, customer value is calculated on the specific profit margin for each outlet and department.
At Foxwoods, the key to optimizing room rates and property availability on total-guest-value, is knowing what each customer segment is worth to the enterprise. By understanding customer worth and their behavior through the demand levels that they exhibit, operators can position the property to allocate rooms at optimized price and availability levels to ensure that the customers with the highest potential value always have a room. Foxwoods turned to The Rainmaker Group to be able to track each gamer's history, frequency and value through a specialized casino hotel RM system. This RM system analyzes a large number of data points from Foxwood's player tracking, PMS and other systems to set room rates based on forecast guest-segment value, as well as guest booking behavior.
Foxwoods leverage the system's forecasts to allocate availability by customer segments from the most valuable to least. The comprehensive analysis of the revenue management system determines and verifies the booking window and behavior of guests by tiered profit value customer segments. The part-time gamer, or someone who dabbles in gaming, plans their vacation four to six months in advance because they know from experience they must book early to get a better rate. Foxwood's last-minute demand segment books within 10 days of arrival. Based on this information, the property effectively yields room availability to its best customers.
Knowing customers' total value and booking behavior allows Foxwoods to effectively position rooms, rates and availability to optimize revenue potential on any given day for the entire property.
Zan Miller currently serves as the executive director of revenue management at Foxwoods Resort Casino. He has 30 years of hospitality management experience with 15 years overseeing revenue management in casino hotels.
Total revenue vs. guest value
Maximizing room revenue is the right strategy for a normal hotel operation where rooms are the top
income source, but it may not be the best plan for a casino property with other profit centers that include multiple dining options, shows and a gaming floor. Basing room rates and availability on total-guest-value is essential for a property like Foxwoods, but it is more complex than just rolling up a guest's revenue. To do it right, customer value is calculated on the specific profit margin for each outlet and department. At Foxwoods, the key to optimizing room rates and property availability on total-guest-value, is knowing what each customer segment is worth to the enterprise. By understanding customer worth and their behavior through the demand levels that they exhibit, operators can position the property to allocate rooms at optimized price and availability levels to ensure that the customers with the highest potential value always have a room. Foxwoods turned to The Rainmaker Group to be able to track each gamer's history, frequency and value through a specialized casino hotel RM system. This RM system analyzes a large number of data points from Foxwood's player tracking, PMS and other systems to set room rates based on forecast guest-segment value, as well as guest booking behavior.
Foxwoods leverage the system's forecasts to allocate availability by customer segments from the most valuable to least. The comprehensive analysis of the revenue management system determines and verifies the booking window and behavior of guests by tiered profit value customer segments. The part-time gamer, or someone who dabbles in gaming, plans their vacation four to six months in advance because they know from experience they must book early to get a better rate. Foxwood's last-minute demand segment books within 10 days of arrival. Based on this information, the property effectively yields room availability to its best customers.
Knowing customers' total value and booking behavior allows Foxwoods to effectively position rooms, rates and availability to optimize revenue potential on any given day for the entire property.
Zan Miller currently serves as the executive director of revenue management at Foxwoods Resort Casino. He has 30 years of hospitality management experience with 15 years overseeing revenue management in casino hotels.