The Rainmaker Group to Present Total Revenue Management Approach for Casino Hotels at INFORMS 2017
Market leader in revenue and profit optimization for the gaming and hospitality industry to share how casinos can maximize share of wallet by focusing on total customer value
ALPHARETTA, GA – March 29, 2017 – The Rainmaker Group, (Rainmaker) is set to present a step-by-step approach to total revenue optimization for casino and gaming properties at the INFORMS 2017 Business Analytics Conference, being held at Caesars Palace in Las Vegas, April 2-4. The informative session, entitled “Vegas Predicts: How the Prophets of Gaming Called the Trend for Profit Optimization” will be presented on Monday, April 3 from 10:30 to 11:30 a.m.
During this strategic session, which is in the Revenue Management and Pricing Track, Angie Dobney, Rainmaker’s vice president of pricing and revenue management services, will detail the data-driven methodology behind the total revenue management approach that has been successfully implemented by many casino properties in recent years. Dobney will also explain the specific processes that revenue managers can use to strategically price and protect room inventory for the property’s most valuable guests by segment, as well as by individual spending and play patterns.
“Since gaming revenue typically is significantly higher than room revenue, casino hotels have traditionally left money on the table by over-discounting and comping rooms without the real-time data to back up those decisions,” said Tammy Farley, co-founder and president of Rainmaker. “A more strategic and profitable total revenue management approach goes far beyond those antiquated methods by considering the total value of each segment and individual customer, based on all available revenue streams, including gaming, room revenue and ancillary revenue such as F&B, wellness and retail. By factoring total spend into their pricing decisions, gaming resorts can refine their practices to significantly impact overall profitability of the property.”
Using this total revenue management approach to effectively optimize profitability, casino hotels have shifted from measuring their success by RevPAR, which is rapidly becoming outdated, to TRevPAR (Total Revenue Per Available Room) that includes revenue from both gaming and non-gaming activities. By forecasting demand for each customer segment based on total spend, casinos can determine the optimal mix of customer segments for each date and use real-time data to target them with the most strategic pricing and promotions for each.
“Casino hotels can win big by using data-driven solutions that also factor in total guest value by arrival date and length of stay, to ensure that rooms are always available for their most valuable customers,” concluded Farley. “Hotels can forecast each segment’s demand, determine the optimal mix based on the profitability of each segment, and then make pricing decisions that target this ratio. In our session at INFORMS, we will show them how to do this, step by step, in order to yield the best results.”
For more information on Rainmaker’s revenue management and business intelligence solutions, please visit: http://www.letitrain.com/
About Rainmaker | The Rainmaker Group is the premier provider of revenue and profit optimization solutions to the hospitality and gaming industries. Since its inception in 1998, the company has focused on delivering the highest revenue returns possible for its clients, through the development and cultivation of a proprietary suite of products and consulting services. All Rainmaker solutions are designed to streamline operational efficiencies, enhance revenue optimization processes, improve lead performance and generate greater demand. Recognized as one of the top privately held companies in the United States, Rainmaker has been named to Inc. 5000’s Fastest Growing Privately Held Companies for the last six consecutive years, and was named to the Atlanta Business Chronicle’s List of the 100 Fastest Growing Companies in Atlanta. With corporate headquarters in Alpharetta (Atlanta), Georgia, Rainmaker also maintains offices in Las Vegas and Singapore. To learn more about Rainmaker and its suite of profit- and demand-optimization solutions, please visit www.LetItRain.com, and follow Rainmaker on Facebook, LinkedIn and Twitter.