Drew Rosser, VP of Sales at SHR

MSAR in need of catching up

Local resorts can still better implement methods to improve their revenue performance and customised booking, with these aspects having already matured in Las Vegas, the Vice President of Sales at hotel service company SHR, Drew Rosser, told Business Daily.
According to Mr. Rosser, revenue management alludes to the methods for maximising the revenue a hotel is able to get by room, day of week, by month and throughout the entire year.
“Having a revenue strategy is a different way to run the hotel. In the few meetings we’ve been having here in Macau with various hotels a few told us they’re just now starting to think about using revenue management. In some cases they don’t even have revenue managers on staff, but they know it is something they’ll have to do. In Vegas they’ve been doing it for years,” he added.
According to the SHR representative, this approach is a new “mindset” on how to manage room rates with local resorts traditionally not having a revenue management strategy, “giving rooms away and not charging” for them.
“Four to five years ago in Macau 80 per cent of hotel rooms would be complimentary but now that percentage is down to around 15 per cent,” he added.

Know your customer
Another aspect Mr. Rosser sees lacking in the local hotel and tourism industry is a more innovative and complete grid of internet booking agents, that can provide more elaborate information to customers while allowing more personalised requests.
“What we’ve seen here is that Internet booking agents are fairly simple in terms of what they offer to consumers but that’s starting to change. If you look at hotel websites of hotels in Las Vegas, not just their website but the hotel booking agent, it is more complex in terms of the rates and the various things they are offering to consumers,” he added.
In order to be able to provide a better customised service, customer data analysis is crucial to understand what customers want to do or what their preferences are, with hotels now using customer relationship management (CRM) programs.
“Big data analysis is huge at the hotel industry now. If they recognise you went to the spa, ate at multiple different food outlets or play golf, they will send you offers that include those specific things,” he added.
The analysis also allows hotels to better coordinate what comps (complimentary services) should be provided to certain customers from services such as transportation from the airport, to specific “flowers, wine, champagne or chocolates”.
However the SHR representative stated that apart from renting rooms, the two largest revenue generators for hotels nowadays are charging for an early check-in or a late check-out.

Here to stay
When it comes to entertainment offerings by integrated resorts Mr. Rosser is adamant that “gaming is here to stay” but it will become a smaller part of the offerings.
Mr. Rosser stated that since 2007 Las Vegas gaming revenues have dipped and became static, while in Macau after hotel room occupancy and gaming average daily revenues peaked in 2014, occupancy outpaced average daily revenues for the first time this year.
One aspect that may be contributing to this decline is the lower interest Millennials – customers born after 1980 – have towards gaming when compared to previous generations.
“They’re much more interested in experiences. If they’re going to a traditional gaming centre they’re going to clubs, shows, restaurants but not spending a lot in casinos,” Mr. Rosser considered.
This has led Las Vegas to develop a more “in your face” advertising of entertainment offers, bringing shows, magicians, singers and attracting customers that go specifically for those shows.