Mike Pavicich | March 28, 2024

By Mike Pavicich

Technology becomes the key to maximizing your venue’s revenue potential by getting more out of every square foot of floor space

Historically, Las Vegas was a gaming-centric market, with 61% of revenues coming from the casino category in 1990. Although gaming continues to serve as an economic engine in Las Vegas, according to CDC Gaming, food, beverage, and other departments accounted for a record 73.4% of total revenue, up from a combined 69.6% year over year. This trend is not limited to Las Vegas; it is being observed in casino markets worldwide.

A shift in consumer preferences drives this trend, with guests looking for a more holistic experience beyond gaming.  A new 2024 Casino Player Trends Report study cites that a significant portion of younger generations, like Millennials (83.9%) and Gen Z (80.5%), prioritize non-gaming activities such as dining, live entertainment, and hotel amenities. This pattern is also seen in older demographic groups, albeit at lower rates, with 65.3% of Boomers and 76.1% of Gen X saying non-gaming offerings greatly influence their decision.

Though some guests may not be interested in gambling, they are more than ready to pay for top-notch event spaces and catering services. This has led to a significant surge in groups and events business as planners look for unique spaces to host large and small groups.  From birthday celebrations, holiday parties, sporting events, tour groups, conferences, tradeshows, private receptions, or large corporate meetings, casino resorts can most of their existing spaces, including lounges and indoor and outdoor spaces, available for rental or partial to full buyouts. 

These activities provide direct income from space rentals and indirect sources of income, like food and beverage, accommodation, and other services. Focusing on a group sales strategy can stabilize the hotel’s income, reducing its reliance on the unpredictable gaming industry. As a result, many owners and operators are looking for ways to attract more group bookings to reap these benefits. 

How is your space generating revenue?

While it may vary from operator to operator, many casino resort operators do prioritize venue space revenue optimization as part of their non-gaming sales strategy. Much like slot floor optimization is considered a vital component of the business, optimizing space to provide unique venue options for groups is a lucrative proposition that requires attention worthy of the return it yields. 

This could involve scheduling multiple events in the same space on the same day or repurposing underutilized areas. Larger areas like ballrooms or conference halls are perfect for big events such as weddings or large-scale conferences. These types of events typically bring in more money due to food and drink sales, equipment rent, and extra services like event planning or decoration.  Smaller areas, such as private rooms or small meeting rooms, are great for smaller gatherings like business meetings, private parties, or mini seminars. These places may not bring a high income per event, but they can be used more often and need fewer resources to manage, providing a reliable source of income.

By offering comprehensive packages catering to each event’s specific needs and bundling in ancillary services, such as event planning, decoration, and entertainment, properties can greatly increase their ROI per event. For instance, a birthday celebration package could include a private dining area, a customized menu, and entertainment options. Similarly, a corporate event package could offer conference facilities, A/V equipment, an all-inclusive menu, an open bar, team-building activities, table games, and business services. 

However, maximizing group business is a complex task requiring effective tracking and management of opportunities. This is where a solution like STS Gaming comes into play. Casino hotels can better manage their end-to-end group sales process, comps, team performance and analyze actionable data.

Don’t gamble when it comes to technology

Casinos are typically slow to adopt new technologies, often focusing more on investments linked to gaming systems. However, using technology to maximize group and event revenue in casino hotels involves a strategic approach that maximizes income on space use, enhances customer experience, and improves operational efficiency. 

However, you might get sticker shock when you see the hefty price tag associated with implementing group sales management systems from some of today’s leading technology players. And if you are using a system now, it might be worth taking a look at how much you are paying for it.

One best practice is to employ a centralized, easy-to-use, affordable cloud-based system like STS Gaming to centralize and track group business opportunities.  The intuitive platform allows users to manage and track all interactions with clients, from initial interactive proposals and contacts with e-signatures to menus, BEOs, room blocks, and final billing.  STS Gaming provides real-time visibility into venue availability and booking status to respond quickly to inquiries. 

A full suite of data analytics features, such as data viewing, advanced reporting and forecasting tools, and performance indicators, allows users to easily track and judge essential metrics related to group and event businesses. The added Reporting+ feature delivers improved summaries of sales activities, pace, and revenues. This data-driven approach highlights expansion opportunities, refines group sales strategies, and ensures a memorable guest experience.

It also automates many administrative tasks, freeing up staff to focus on personal service and winning more group business. The end-to-end system designed exclusively for casino resort venue optimization can save money and, more importantly, increase revenue and maximize the productivity of our sales team.

Data deals a winning hand

It is no secret that casinos pioneered the use of big data to segment and target various levels or tiers of patrons by leveraging player tracking systems. A data warehouse keeps comprehensive revenue tracking (valuation) on an individual guest basis—some casinos refer to this as MDV (Maximum Daily Value), ADW (Average Daily Worth), or ADT (Average Daily Theoretical). This tracking isn’t confined to how much customers spend on gaming, like slots and tables; their expenditure on non-gaming activities is also taken into account, contributing to the calculation of Worth Per Available Room or WorthPAR.

Using this same data-driven concept for groups, STS Gaming maintains a detailed record of each lead, RFP, and client and provides real-time data visualization and analytics for sales. This can help make informed decisions about pricing, resources, menus, comps, and strategies.  

By leveraging robust data intelligence to analyze historical data and predict future trends, casino resorts can also anticipate demand and adjust their strategies accordingly. For instance, if data shows a high demand for weddings in spring, the hotel can allocate more resources during this period and increase prices to maximize revenue. It also facilitates seamless communication and coordination among different departments, ensuring that all aspects of an event are handled efficiently.

Takeaways

Worldwide, casinos are realizing that they can tap into new sources of profit beyond gaming—they can also be excellent venues for groups, events, meetings, and conventions. Whether you run a large, high-profile gaming hotel or a smaller independent gaming business, managing group meetings effectively can lead to more revenue at every touchpoint. It’s not about the size of your property or venue,  but how you handle key information to sell and deliver unforgettable experiences for all your guests. 

Whether you’re interested in getting into the meeting and events industry or attracting more visitors with casino events, tools like STS Gaming can help optimize sales processes, make the most of available space, and boost your brand’s reach.