Archive #4
DeTazz
tm472_class_10-2012.pptxUniversity of Southern Mississippi
Casino, Hospitality, Tourism Management
Role of Resort Operations,
Air & Bus Programs & Golf Packages in Casino Marketing
Wednesday, October 17th 2012
Discussion Items
Overview of Brand Loyalty Program for MGM Resorts International
Air & Bus Program Operations
Golf Packages and Operations
Resort Operations
Overview of Brand Loyalty Program, M life,
of MGM Resorts International
Air & Bus Program Operations
Beau Rivage Charter Air Program
Destination Cities
6
National Marketing – Air Program
Program operates in the east, mid-west and southeast corridors of the United States
Notable metrics:
Almost 90K passengers annually, via a 737-400 with all leather seats, including first-class legroom in all rows
Over 92% overall occupancy annually
Over 120K Annual Room Nights
Almost 2,300 Charter Block Hours flown per year
National Marketing – Air Program
Service from St. Petersburg/Clearwater, FL
Increased service in 2012 from 3x/week to 5x/week
No flights on Sundays and Wednesdays
2,700 seats per month, or 32,400 annual seat capacity
YTD occupancy over 90%, despite increase of 1K seats per month versus 2011
Passengers are very loyal to the M life and MGM Resorts International Brands
YTD, through August 2012, Beau Rivage Air Program has generated a profit margin over 27%.
Consolidation of Wallet Share, Duration of Play, and Cross-Property Loyalty are all extremely important long-term factors
National Marketing – Air Program
National Marketing – Bus Program
Program produces marginal profitability, in line with YTD. Program focuses on Sunday to Thursday business, and “Day Trips” on Fridays & Saturdays.
Over 67,000 Patrons Year-to-Date
Some competitors continue to offer unreasonable, profit-reducing incentives and pricing to Tour Operators. Beau Rivage and Gold Strike drives profit-enhancing patronage.
Commissions for Tour Operations are not flat per patron, but rather are play-based.
Golf Packages and Operations
Beau Rivage Property Amenities
Golf Course
Tom Fazio-designed Fallen Oak is an ultra-exclusive golf course only for Beau Rivage guests
Named one of the “Best Resort Courses” by Golf Week magazine
In 2012, listed at #27 in GOLF Magazine’s “Top 100 Courses You Can Play” list
Host to the Sr. PGA Tour and the Mississippi Gulf Resort Classic
Course offers mature oak trees, lush landscapes, forests and wetlands
12,000 sq ft Southern mansion-style clubhouse anchors the property
Pros and Cons of Golf Operations
Golf Courses are generally extremely expensive to build, and quite costly to maintain and operate
In Casino / Hotel Operations, Golf Courses are thought of as both a ‘Brand Enhancer’ and ‘Incremental Profit Driver’. The latter is very difficult due to:
Very high-end patrons must come to your Casino Resort, with Golf as a vital and premium amenity in their perception
Higher-end courses in Vegas, such as Shadow Creek and Rio Secca, meet this criteria. However, the vast majority of Regional Golf Courses do not
Pros and Cons of Golf Operations
Regional golf courses should mitigate their costs through:
Mid-week, premium priced cash business (which might dilute their respective perception of exclusivity)
Expense mitigation, via part-time assistance, limited hours, etc.
Golf Packages can include:
Hotel, Airfare, Food & Beverage, and/or Table Play and Freeplay
Be built around tournaments
Be Invite-only (i.e. Pro-Am Events)
Resort Operations
Beau Rivage Property Amenities
Casino & Hotel
AAA 4-Diamond Resort
Recognized by Conde Nast Traveler and Travel & Leisure as one of the top resorts in the country
Features the most table games, guest rooms and meeting space on the Gulf Coast
85,000 sq ft casino, featuring 2,100 slot machines and 93 table games
1,740 guest rooms, including 95 luxury suites
Beau Rivage Property Amenities
Gourmet Restaurants
BR Prime steakhouse - Prime grade steaks, fresh seafood and an extensive 3,500-bottle wine collection
AAA 4-Diamond restaurant
2010 Wine Spectator Award of Excellence
Jia - Contemporary Asian cuisine including sushi, hibachi-style cooking, and a variety of specialties from Thailand, Japan, China, Vietnam and Hong Kong
AAA 4-Diamond restaurant
2010 Wine Spectator Award of Excellence
Stalla - classic Italian food paired with premium wines and excellent service
Memphis Q – a variety of tangy barbeque, smoked chicken, and dishes reminiscent of the South
Beau Rivage Property Amenities
Spa & Salon
20,000 sq ft Spa and Salon
Personalized treatments ranging from wraps and therapeutic massages to facials or even eyelash extensions
Expanded treatment menu with innovative offerings such as a Caviar & Pearl Facial
State-of-the-art fitness facility featuring cardiovascular, circuit training and weight machines
Men’s and women’s saunas, steam rooms and plunge pools
Pool deck extending out over the Gulf of Mexico
features lush tropical landscapes, heated Jacuzzi, and private cabanas with service staff
Pool Bar & Café offers a variety of tropical smoothies and cocktails, along with light meal service
The nicest amenities in the world cannot compensate for poor Customer Service
Management has a responsibility to ensure their team members are engaged
Highly engaged team members, lead to more satisfied customers, and greater profitability
Poor Performers, and highly Dis-engaged employees, can have a detrimental effect on their teammates and overall operations
Look for managers and supervisors whom have the 4 “E’s” and 1 “P” (from Jack Welch’s book, Winning)
High Energy
Ability to Energize Others
Edge (making difficult decisions in tight time-frames, with limited information
Execution (Consistently perform)
Passion (Emotional connectivity to their teammates and duties)
Customer Service – The “Make or Break” Factor
Questions / Comments
