Revenue management in fabulous Las Vegas: Combining customer relationship management and revenue management to maximise profitability
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Casino companies have the knowledge and technological resources to implement highly customised pricing and marketing strategies. Existing tracking mechanisms and the use of state-of-theart software have allowed the industry to combine data mining and revenue optimisation tools to allocate rooms effectively, based on the potential profitability of each customer and the opportunity cost of the room. This paper describes how revenue management can be combined with customer relationship management (CRM) practices in gaming to maximise the overall property revenue. An overview of CRM in gaming is provided, followed by a discussion of effective room allocation in the industry and an assessment of the requirements for revenue management implementation in casinos.
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